[EVA Weekly Review] Petrochemical Industry Sturdy, Market Stable and Slightly Strong

1. Analysis of the EVA Market Trends This Week

Source: Longzhong Information

This week, the domestic EVA market remained steady. At the beginning of the week, influenced by the continued increase in EVA petrochemical ex-factory and settlement prices, market traders raised their offers. However, downstream foam manufacturers were resistant to the high-priced goods. Some factories and profit-taking sellers actively shipped their products, adopting a mindset of securing profits, resulting in some discount sales. The market transaction focus declined gradually. As of Thursday this week, the mainstream closing prices for soft materials were around 10,900-11,300 yuan/ton, remaining flat compared to last week. The price reference for hard materials is 10,200-11,100 RMB/ton, remaining unchanged from last week. Photovoltaic price Mainly negotiated at 10,300-10,400 yuan/ton, up by 100-200 yuan/ton compared with the previous period.

Domestic Regional Price Change Comparison Table

2. Market Impact Factor Analysis

This week, the EVA petrochemical ex-factory and settlement prices continue to rise, and the auctioned goods have been sold well.

2) This week, the capacity utilization rate of China's EVA industry is estimated at 84.56%, a week-on-week increase of 7.35%.

3) The average profit of the domestic EVA industry this week is 2,096 yuan/ton, a week-on-week decrease of 0.71%.

3. Market Forecast for Next Week

Next week, the supply side will continue to maintain a stable market with ample inventory, and ex-factory prices and settlement prices are likely to continue rising. Most plants are operating steadily and normally, with some production capacity expected to increase, leading to a certain supply increment. On the demand side, photovoltaic demand is expected to maintain a good purchasing rhythm, while foam demand may resist high prices and maintain just-in-time purchasing. Holders are cautious, mainly adopting a stable operation strategy, with an increased willingness to sell for arbitrage. The market's quoted prices have limited room for further increases. Overall, it is expected that the domestic EVA market prices will trend sideways with fluctuations next week.