EVA Price Rises Continuously Amid Overseas Production Capacity Withdrawal, China Set to Take Global "Discourse Power"

Recently in ChinaThe EVA market has entered a "surge mode," as of August 2.7On that day, the prices of mainstream products all saw significant increases: the settlement price of photovoltaic materials reached...The price range for rigid materials is 9,900-10,200 RMB/ton, up 2% from last week; soft material prices have climbed to 11,000-11,300 RMB/ton, with an increase of 4.76%; rigid material prices are also strong, reported at 10,250-11,000 RMB/ton, with a weekly increase of 3.53%. In just a few weeks, the overall EVA market has shown a hot trend of "reduced volume and increased prices."

EVA Market Price Trend Chart

The surge in EVA prices is by no means driven by a single factor, but is the result of simultaneous tightening on both domestic and international supply sides. Domestically, planned shutdowns and maintenance at Sinopec Zhongke and Gulei Petrochemical, along with an unexpected shutdown at Sinochem Quanzhou and a short-term stoppage at Jiangsu Hongjing for cleaning, have directly caused domestic weekly EVA production to drop to 53,500 tons, a decrease of 9,300 tons from last week, or 14.81%. In response, holders have begun to withhold goods and are reluctant to sell, making spot supply in the market increasingly tight.

The more critical issue is the overseas supply side.“Double impact”: Not only are Korea’s Total and companies from Taiwan conducting major overhauls lasting more than 20 days during July and August, resulting in a tight supply of overseas EVA, but major overseas producers are also undergoing strategic capacity adjustments. Korea plans to cut 2.7–3.7 million tons of naphtha cracking capacity, a move that will not only affect the supply of EVA feedstock but also impact PTA and other related chemicals. One of Lotte Chemical’s cracking units in Korea, with an annual capacity of 640,000 tons, has been forced to reduce its operating rate to 75% due to continued pressure on olefin product margins. The market has suffered a significant impact as a result.The combination of "routine maintenance + strategic production cuts" has further exacerbated the supply gap of global EVA and related chemical products.

However,The upward momentum of EVA prices has shown signs of "concern." Although current market quotations continue to rise, downstream acceptance of high-priced raw materials is gradually decreasing: the foam shoe material industry, affected by weak overseas orders and the postponement of new product ordering events, only follows up with small orders based on actual demand after a phase of replenishment, exhibiting strong resistance to high-priced supplies; even the relatively robust photovoltaic encapsulation film sector has started to control its purchasing pace due to the narrowing price gap between EVA and downstream products. This means that even if there is no obvious supply shortage in the future, the space for further price increases of EVA will be limited.

Behind the weak price increase is the global...The production capacity pattern of EVA is accelerating its transformation. Overseas companies are continuously reducing capacity due to profit pressures and strategic adjustments, while the domestic market is witnessing a supply rebound—next week, domestic EVA production is expected to increase to 61,100 tons, a year-on-year rise of 9.25%. Facilities such as Sinochem Quanzhou and Gulei Petrochemical will also ramp up the production of soft materials to alleviate the shortage of soft materials. In the long term, with overseas capacity continuously under pressure and domestic capacity steadily increasing, the global EVA capacity concentration "shifting towards China" will further deepen, and China's influence in the global EVA market will correspondingly strengthen.