Price trend
| POLYVINYL ALCOHOL |
The recent negative continuation of the domestic EVA market has led to a significant decline in spot prices. According to data monitoring from Business Society, as of June 2nd, the average ex factory price of EVA in China was 12833.33 yuan/ton, an increase of -4.47% compared to the beginning of the week.
Cause analysis
The domestic EVA market continued to be weak this week. On the supply side, the EVA industry continues to experience high operating rates and a slight decrease in operating rates within the week, but the overall position is still at a high level of about 85%. The market supply is abundant, and there is pressure on factory inventory. Factory factory prices continue to be lowered, and the profitability of EVA polymerization plants continues to weaken. Social inventory pressure is also high, with traders operating at the end of last month with a bias towards giving up profits and taking orders. On the buyer’s side, due to the news of the new production device, the stocking operation was cautious and the follow-up was poor during the week. Terminal enterprises in both photovoltaic and foaming materials have lagged behind in their follow-up, resulting in frequent occurrences of low prices and low trading volume on the market. Enterprises have resistance to high priced sources of goods. The current demand side continues to have a bearish impact on the EVA price market.
Overall, the supply side pressure on the EVA market has been limited this week, and downstream demand is generally weak. Overall, the factory price of enterprises has been lowered, while businesses have followed suit. The demand for foaming is particularly poor, and the overall market is empty. It is expected that the domestic EVA market may continue to be weak in the short term.
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