US Ethylene Vinyl Acetate Market Sees Bullish Start in 2024 Amidst Increased Demand and Economic Optimism

Texas, USA: The first month of 2024 saw bullish sentiments in the US Ethylene Vinyl Acetate (EVA) market due to improved market dynamics. Demand for EVA from downstream industries such as packaging, footwear, solar energy, automotive, and adhesives increased in January. Improved consumption rates, driven by favorable market conditions and further easing of economic constraints, have prompted the Ethylene Vinyl Acetate market to function optimistically. As of January 2024, the assessed prices of Ethylene Vinyl Acetate 28% FOB Houston were recorded at USD 1800/MT

In the solar panel manufacturing industry, demand for Ethylene Vinyl Acetate has shown considerable growth. Despite the increase in American production of solar equipment in response to tariffs, domestic manufacturers continue to incur losses, as reported by the US International Trade Commission, eventually impacting the Ethylene Vinyl Acetate market in some way.

The solar industry is also facing significant challenges, as a surge in imports undermines both tariff protection and a range of incentives provided by the Inflation Reduction Act, according to manufacturers. Despite this support, module producers still face operational and net losses.

On a broader perspective, the US economy demonstrated remarkable resilience in the final quarter of 2023, wrapping up a strong year. Despite concerns about elevated interest rates, both individuals and businesses maintained robust spending, reflecting the resilience of not only the broader economy but also the chemical industry, including the polymer and resins market such as Ethylene Vinyl Acetate. Recent data confirms the economy's vigor, with GDP growing consistently at a rate of 2% or higher for the sixth consecutive quarter. Consumer activity played a significant role in driving growth in the last quarter. Overall, the economy expanded by 2.5% in 2023, a notable increase compared to the 1.9% growth recorded in 2022.

According to the ChemAnalyst database, Ethylene Vinyl Acetate prices are expected to rise further in the first quarter of 2024 due to increased demand from downstream industries and improved economic conditions. The US Federal Reserve has considered monetary policy easing, but recent data showing a rise in inflation might cause a delay. However, core inflation, which excludes volatile elements, continues to decrease, suggesting a positive trend for the polymer industry, including the Ethylene Vinyl Acetate market. Additionally, the easing of tensions in the Middle East is expected to benefit the Ethylene Vinyl Acetate market as further easing in supply chain operations could benefit manufacturers. Overall, the chemical industry is projected to experience recovery in 2024, with a 1.5% growth in output according to industry experts.