EVA Market Steady Amid Pre-Holiday Demand and Stable Raw Material Costs

Polymer Price : Asian EVA Prices Steady at $1465/Ton

• The Asian EVA market has remained steady during the period of third week of Jan, 2025. the benchmark price of EVA stood at USD1465/ton. 
• Raw material prices have played a stabilizing role in the EVA market. The price of ethylene in the East China market has remained stable at USD1050/ton, reflecting no change over the week. 
• Similarly, vinyl acetate prices have experienced a slight increase, rising to USD785/ton from USD780/ton during the same period. This overall stability in raw material costs has supported EVA price levels.  
• On a broader timeline from January 1 to January 23, the EVA benchmark price increased marginally by 0.65%, moving from USD1455/ton to the current level of 1460/ton, indicating limited upward momentum in the market.  

Demand and Supply : EVA Prices Stable Amid Reduced Supply

• The supply side has witnessed a slight reduction in production activity, which has helped alleviate pressure in the EVA market. The production rate of EVA equipment in China decreased further to 6.70% utilization in the week ending January 23. 
• This marks a consistent decline in operational capacity, reducing the volume of EVA available in the market and ensuring that supply does not overwhelm demand.  
• From the demand perspective, downstream activities have played a key role. Pre-holiday stocking by manufacturers, especially from the foam production sector, has supported EVA demand during early January. 
• However, as the Chinese Spring Festival nears, the intensity of demand has begun to taper. Logistics and transportation challenges during the holiday season have further slowed market transactions, limiting trading volumes in recent days.  
• Rigid demand from end-users remains stable, but resistance persists for high-priced EVA sources. Downstream buyers have shown a preference for securing lower-priced materials, adding a cautious tone to the overall demand scenario.  

Polymer News : China's PP Exports Surge; Libya, Sasol, Japan Updates

• China is approaching the status of a net exporter of polypropylene, with PP homopolymer exports rising by an impressive 88% in 2024, driven by strong demand from Vietnam and Indonesia as top buyers.
• Meanwhile, in Libya, the HDPE production line at Rasco’s facility in Ras Lanuf has resumed operations after being idle for over 12 years due to the country’s civil war.
• In a separate development, Sasol has revised its full-year sales volume guidance downward, citing weaker demand and the aftermath of a fire last year that kept its East Cracker in Louisiana offline until November, impacting its international chemicals business. 
• In Japan, cracker utilization showed improvement in December, with the average ethylene plant operating rate rising to 78.7%, compared to 77.6% in the previous month.

EVA Market Outlook: Stability with Narrow Price Fluctuations

• In the near term, the EVA market is expected to remain stable with minimal fluctuations. Raw material prices are likely to provide cost support, while the supply side remains balanced due to reduced production rates. 
• However, with the Spring Festival reducing trading activities, the market may see subdued demand. Overall, the EVA spot market is forecasted to stay stable, with prices fluctuating within a narrow range.