Ethyl Vinyl Alcohol Prices Rally Upwards in The United States
- 17-Mar-2022 8:38 AM
- Journalist: Patrick Knight
Ethyl Vinyl Alcohol (EVOH) prices continued to stay firm in the United States reaching USD 6443/MT FOB Texas with an increment of 5% in February and 2% in March. Feedstock comonomers Ethylene and Vinyl Acetate Monomer prices also surged along with racing Crude Oil and Natural Gas prices. Healthy market fundamentals in the food packaging sector with an exceptional growth brought about such an upraised price trajectory.
Demand for EVOH in the USA has remained firm amid the requirement for packaging applications across various downstream industries. Changing consumer sentiments over food amongst numerous working populations exhibited inclination towards processed food products. As a result, demand for fast food and packaged food products increased the popularity EVOH due to its high shelf-life for packing material. Thus, EVOH market enquires have been gaining numbers since the beginning of Q1 of FY22.
On the other hand, according to the major key players, Mitsubishi’s specialty chemical subsidiary Nippon Gohsei Co., Ltd. and Kuraray America, the production rates of EVOH were impacted by the prolonged tight supplies and thinner trading of feedstock Vinyl Acetate Monomer (VAM) in the US along with the on-going Russia-Ukrainian war.
As per ChemAnalyst, “USA EVOH market might further exhibit bullishness driven by strong feedstock Vinyl Acetate Monomer market. Rising feedstock costs are expected to suppress the manufacturer’s margin fundamentals leading to extended cost-push inflation.”