For the Quarter Ending September 2023
The Ethyl Vinyl Alcohol Copolymer prices oscillated in the North American region during the Q3 of 2023 amid moderate demand and supply dynamics. Initially, producers kept their operational rates moderately low due to escalation in feedstock prices amid hike in bank interest rates by Federal Reserve Bank, which impacted the supply rates in the market. Simultaneously, the supply rates were inadequate due to affected US shipping and freight routes amid the decline in Mississippi and Ohio river water levels. During the mid-quarter, supply raised improved, and prices dropped marginally amid rise in inflation and declined demand from buyers. Meanwhile, the hike in bank interest rates by Federal Reserve Bank to cool down the rising inflation impacted the demand from buyers, causing a slowdown in economic growth of the US region. Towards the end of Q3, prices rose marginally amid stable demand and stressed production rates due to limited availability of feedstock Ethylene supplies because of upstream Crude Oil production cuts by OPEC+ and Russia. Conclusively, at the end of Q3 of 2023, Ethyl Vinyl Alcohol Copolymer prices in the USA witnessed USD 9100/MT.
The Ethyl Vinyl Alcohol Copolymer showcased bullish movement in the Asia, and prices rose by almost 15% during the 3rd quarter of 2023. At the beginning of the quarter, production rates were affected because of shortage of upstream Acetic Acid in the Asian region. During the mid-quarter, price trend remained firm due to moderate demand-supply dynamics amid storms and typhoons like Doksuri, Saola and heavy rainfall in the region. Simultaneously, the upstream Ethylene cash margins in the Northeast Asian countries fluctuating below zero, instigated and upheld by the economic slowdown along with geopolitical differences amongst the nations. Towards the end of the quarter, prices rose again due to moderate production rates amid stressed availability of feedstock supplies. The Crude Oil production cuts by OPEC+ and Russia limited the feedstock Ethylene availability. Simultaneously, Japan tightened their supply rates amid increase in demand from food sector and high procurement activities before the Autumnal Equinox Holiday. At the end of Q3 2023, Ethyl Vinyl Alcohol Copolymer prices in Japan and Taiwan witnessed USD 9100/MT and USD 8600/MT, respectively.
Like the North American region, the 2023 Ethyl Vinyl Alcohol Copolymer price trend fluctuated in Europe during the Q3 of 2023, and prices inclined by almost 8% during the quarter. Initially, the production rates were low amid high input prices. The Eurozone manufacturing Purchasing Manager’s Index dropped gradually during the 3rd quarter, indicating contractions in manufacturing sector activities during summer holidays in the region and moderation in procurement activities from downstream buyers. During the mid-quarter, buyers declined their offtakes amid introduction of Packaging and Packaging Waste Regulation, which will use recycled materials for food packaging. At the same time, cost support was high on upstream Ethylene due to escalation in Brent Crude Oil prices amid stressed Crude Oil stocks due to production cuts by global refineries. It raised the product prices towards the end of the quarter amid stable demand from food sector. At the end of the quarter, Ethyl Vinyl Alcohol Copolymer prices in Belgium hovered at USD 9700/MT.
For the Quarter Ending June 2023
The Ethyl Vinyl Alcohol Copolymer prices seesawed during the Quarter 2 of 2023. At the beginning of the quarter, the prices increased due to the increased production costs due to an escalation in upstream cost support from feedstock Ethylene amid volatile upstream Crude Oil prices. The production rates were moderately low due to an increase in labor costs amid shortages of labor due to the rise in recession in the region. Meanwhile, cost pressure decreased on feedstock Ethylene prices during mid-Q2 due to the contraction in upstream prices and reduced consumption rates amid a drop in fuel demand with the temperature rise. Simultaneously, the feedstock Vinyl Acetate prices fell consistently during Q2 due to a contraction in upstream Acetic Acid prices and negatively impacted the cost support on EVOH prices. Towards the end of the quarter, prices soared again amid the low availability of supplies and increased costs amid a hike in bank interest rates by the Federal Reserve, which raised the product prices in the market. At the end of the quarter, Ethyl Vinyl Alcohol Copolymer prices in the USA witnessed USD 8500/MT.
The Ethyl Vinyl Alcohol Copolymer price trend showcased mixed sentiments during Q2 of 2023. At the beginning of the quarter, the imports and trading activities were firm and rose before the Labour Day holidays in the key regional importer China. Meanwhile, supplies were inadequately available, and production rates were moderate. However, in the H2 of the quarter, the demand declined from the regional food packaging industry, and prices decreased due to improved availability of supplies. Simultaneously, the contraction in the feedstock Ethylene costs amid a decrease in upstream Naphtha prices reduced the production costs. Towards the end of the quarter, the price trend stagnated amid limited availability of supplies and moderate operational rates in the region, which kept the demand-supply dynamics stable during the final month of Q2. Furthermore, buying activities rose in China before the Dragon boat festival. Conclusively, at the end of Q2, 2023, Ethyl Vinyl Alcohol Copolymer prices in Indonesia and Taiwan witnessed USD 8100/MT and USD 7400/MT, respectively.
The Ethyl Vinyl Alcohol Copolymer price trend shifted momentum in the European region during Q2 of 2023. Initially, prices were firm and rose due to the stressed availability of supplies and strong demand from downstream food packaging industries. The available inventory levels remained limited till the mid-quarter amid consistent offtakes from the buyers. Meanwhile, the production costs were low during the quarter due to the consistent declines in the feedstock Ethylene and Vinyl Acetate prices amid volatile Crude Oil prices and a decrease in the upstream Acetic Acid prices. At the end of the quarter, the decline in the price intensified amid firm availability of supplies from Asia and reduced buying and manufacturing activities in the region. The hike in bank interest rates by the European Central Bank and the Bank of England to curb rising inflation made the buyers conscious while making purchases, and they avoided any unnecessary trading activities. Conclusively, the Ethyl Vinyl Alcohol Copolymer prices in the Netherlands and Belgium witnessed USD 9200/MT and USD 9000/MT, respectively, at the end of Q2.