China EVA Prices Surge Amid Strong Demand & Cost Pressures

Key Highlights:

1. EVA Prices Steady in India, Surge in China – Prices in Mumbai and New Delhi showed minor fluctuations, while China's EVA benchmark rose by 6.6% in February.
2. Asian Production Rises, Inventories Stay Tight – A 7.8% increase in production, but manufacturers maintained low stock levels, leading to firm pricing.
3. Major EVA Plants Resume Operations – LG Chem, Formosa Plastics, and APC made operational adjustments, affecting supply dynamics in Asia.
4. Firm Prices Expected Amid Cost Pressures – Strong demand from the photovoltaic and foam industries, coupled with high raw material costs, may keep EVA prices elevated.

EVA Prices Stable in India, Surge in China Amid Rising Costs

• EVA 18% prices in Mumbai and New Delhi remained stable, ranging between ₹115/kg and ₹118/kg. In Mumbai, prices gradually increased from ₹115/kg (March 4-7) to ₹117/kg (March 10-12). 
• New Delhi saw minor fluctuations, with prices at ₹118/kg on March 6th and ₹117/kg on March 10th. 
• The Chinese EVA market witnessed a notable surge in February, driven by rising costs and growing demand. 
• The benchmark EVA price reached $1,560/ton in the last week of Feb, marking a 6.60% increase from $1,465/ton at the beginning of the month. 

Supply Tightens as Asian Manufacturers Maintain Firm Pricing

• In the Asian Market, production levels saw a modest rise of 7.8% in mid-to-late February; however, manufacturers maintained limited inventories and remained firm on price hikes. 
• Ethylene prices in China climbed 1.32% to $1,065/ton, while vinyl acetate prices stabilized at elevated levels, providing cost support for EVA.
• Downstream production gained momentum, particularly in photovoltaics and foam industries, both of which played a key role in sustaining strong purchasing activity. Transaction volumes in the EVA market saw a slight increase, reflecting improved buying sentiment.

Key EVA Plant Updates: Resumptions and Rate Reductions

• LG Chem has resumed full operations at its Ethylene Vinyl Acetate (EVA) plant in Daesan, South Korea, following an outage. The facility has a production capacity of 140,000 tons per year. 
• Meanwhile, Asia Polymer Corp (APC) is planning to reduce operating rates at its No.1 EVA plant in March 2025. Located in Linyuan, Kaohsiung, Taiwan, the unit has a production capacity of 260,000 tons per year. 
• Additionally, Formosa Plastics Corp (FPC) has successfully restarted its No.1 EVA plant in Mailiao, Taiwan, which has a production capacity of 190,000 tons per year.

Market Outlook: EVA Prices Likely to Stay Elevated

In the short term, high raw material costs are expected to uphold EVA price levels. The photovoltaic and foam industries continue to exhibit strong demand, which, coupled with tight supply, is likely to keep prices firm. Given current trends, EVA spot prices are anticipated to remain elevated, with further increases possible if upstream cost pressures persist.