In November, the domestic EVA market remained stable and slightly increased, with a narrow increase in spot prices. According to the Commodity Market Analysis System of SunSirs, as of December 1st, the benchmark price of EVA in China was 12,233.33 RMB/ton, an increase of 2.80% compared to early November.
The supply of ethylene at the raw material end remained at a low level in the first half of November. The delayed arrival of ethylene cargo at some ports and the decrease in capacity of the Panama Canal jointly suppressed the supply of goods from the mainland, and the contraction of domestic spot circulation only slightly eased at the end of the month. However, downstream industries have average starting positions and limited demand. It is expected that ethylene will maintain a strong consolidation operation in the future;
The vinyl acetate industry is currently in the off-season, with a pattern of high supply and low demand at the beginning of the month continuing, and prices are under pressure and weakening. In the middle of the month, some downstream stocking further weakened, and the trading situation was relatively weak. Although the load of overseas enterprises decreased at the end of the month and the supply of goods tightened, boosting prices, the results show that the improvement of supply and demand contradictions is limited. In November, the market for EVA raw materials fluctuated, providing moderate support for the EVA market.
Domestic EVA enterprises rebounded after experiencing a drop in load in November. The industry's operating rate fell from around 80% at the beginning of the month to 72% in the middle of the month and began to rebound. The monthly average load was 78.4%, and the monthly production was about 173,000 tons. The market supply remained abundant. The manufacturer's ex factory pricing remains strong in the market, with reduced plans for device maintenance in the future and an expected increase in shipment and inventory. However, the overall inventory position of EVA is still acceptable, and the pricing operation of enterprises tends to be supportive of the market. Overall, the support from EVA suppliers for spot goods in November was average.
The demand side performance of EVA in November was volatile. The long-term weak demand for foam shoe materials has not changed. Photovoltaic companies saw a low rise at the beginning of the month. But with the temporary suspension of photovoltaic material stocking in the middle of the month, market buying sentiment has declined synchronously. At the end of the month, some low-end offers drove demand for adhesive films to buy on dips. The market buying sentiment has slightly rebounded, and the current buyer camp is mainly wait-and-see, with resistance towards the return of high priced goods.
Overall, the EVA market in November showed a generally upward trend in the first half of the month and a sideways trend in the second half. The raw material market provides moderate support for EVA spot prices. The industry load has returned to a high level, and downstream, except for photovoltaic materials, tend to be generally weak. The new quarter orders for foam shoe materials in the future may drive some consumption, but with no expected contraction in the supply side, the market is unable to change the long short pull situation. It is expected that the EVA market will maintain a fundamental game trend in the short term and continue to consolidate and operate.
