Ethylene Vinyl Acetate Prices Continue to be on an Upwards Trajectory in India
- 12-Nov-2021 3:37 PM
- Journalist: S. Jayavikraman
The prices of Ethylene Vinyl Acetate (EVA) in India have been rising since the past four to five months now and the prices are expected to remain firm given that the raw material prices are increasing with the prices of Vinyl Acetate Monomer and Ethylene rising in India. The supply of the raw materials has also been reduced with the imports declining in India. This supply pressure has been putting continuous pressure on the prices.
The prices of EVA rose to USD 5058 per tonne in India on November 12 from the high of USD 4918 per tonne on October 29. The prices in October were also around USD 700 higher than the prices in September.
The reasons for the continuous price hike is the consistent raw material shortage and declining imports. As EVA market in India is majorly import driven, the declining imports have kept the prices high with the increasing pressure on the supply side.
EVA is a copolymer which is manufactured from Ethylene and Vinyl Acetate Monomer (VAM). EVA has several advantages including good toughness, flexibility, clarity and gloss, low temperature stability, and tear resistance. The major applications of EVA are packaging, extrusion molding, adhesives, wire and cable insulations, and coatings etc. The total demand for EVA stood at around 232 kilotons in FY2021 and the demand is expected to grow at a healthy CAGR of around 5.8% during the upcoming years till 2030.
As per ChemAnalyst, “the prices of EVA have been on a rising trajectory for a long time in India due to declining imports and increasing raw material prices. The prices are expected to maintain a firm trend as there have not been any major announcements regarding capacity addition in India and the prices of the raw materials are also expected to maintain current levels for the upcoming month.”