[eva daily review] market remains strong; downstream resists high prices

1 Today's Summary

This week's EVA petrochemical ex-factory prices were raised, and auctioned supplies sold well.

This week, the EVA petrochemical plants of Gulei Petrochemical and Sinochem Quanzhou experienced malfunctions and shutdowns.

2. Spot Price

Table 1: Domestic EVA Price Summary (Unit: Yuan/Ton)

Today's domestic EVA market offers are firm and stable.The overall supply is tight, with a continuous shortage of soft materials recently. Holders are reluctant to sell and are selling in limited quantities. Downstream foam factories resist high-priced sources, and procurement revolves around low-priced restocking based on just-in-time needs. The market atmosphere is flat. 。 Mainstream prices: Soft material reference is 11,000-11,300 RMB/ton, hard material reference is 10,250-11,000 RMB/ton.

Figure 1 Domestic EVA Price Trend Chart (yuan/ton)	Figure 2 Domestic EVA Price Trend Chart by Category (Yuan/Ton)
Data Source: Longzhong Information	Data Source: Longzhong Information

3 Production dynamics

Domestic EVA petrochemical plant:Sinopec Quanzhou shutdown due to malfunctionIn Jiangsu, Sierbang's tubular unit produces photovoltaic materials, and the kettle unit produces UE19150. Jiangsu Hongjing's PV1 line produces photovoltaic materials, the PV2 line produces photovoltaic materials, and the PV3 line is temporarily shut down for 1-2 days for cleaning. All three EVA units in Yanshan are shut down. Ningxia Baofeng produces 1803; Yanchang Yulin produces V2825Y; Zhejiang Petrochemical produces photovoltaic materials. Zhongke Refinery is operational and producing UE631, while Gulei Petrochemical shut down for maintenance on the 14th. Additionally, the price of soft materials in the South China market is 10,900-11,100 yuan/ton, and the gross profit level of the domestic EVA industry is around 2,050 yuan/ton.

Figure 3: Trend Chart of Domestic EVA Capacity Utilization Rate	Figure 4: Comparison of Domestic EVA Profit and Price (Yuan/Ton)
Data Source: Longzhong Information	Data source: Longzhong Information

4 Price prediction

In the short term, the supply-demand aspect maintains a relatively strong support, with petrochemical inventories being sufficient to support prices. The supply of some soft materials continues to be tight. The main downstream photovoltaic demand is well-supported. However, downstream foam factories resist high prices, requiring time to absorb the increase. The EVA market is expected to operate on the stronger side in the short term.

5 The situation of related products

1 Ethylene 8 19th of the month Day CFR Northeast Asia 825 USD/ton stable, CFR Southeast Asia 820 USD/ton stable 。 Sinopec Chemical Sales East China Branch's ethylene price remains stable at 6,950 yuan/ton, and Jinshan Lianmao's ethylene price is also 6,950 yuan/ton.

2 Vinyl acetate: East China Acetic AcidEthylene marketThe mainstream negotiation for high and low-end is 5300-5350 yuan/ton. Petrochemical prices in the East China region are 5300-5350 yuan/ton, with sluggish spot trading and prices continuing at the low end.

6 Data Calendar

Table 2 Overview of Domestic EVA Data (Unit: 10,000 tons)