For the Quarter Ending December 2022
North America
The Ethylene Vinyl Acetate (EVA) price trend showcased stable sentiments during the final quarter of 2022. Initially, prices decreased marginally amid high inflation and moderate product supplies. However, the product price trend improved during the mid-quarter due to a rise in production costs amid high feedstock Ethylene demand from Polyethylene producers. On the contrary, a continuous decrease in feedstock Vinyl acetate prices due to weak upstream prices was further reduced, which reduced the cost pressure. Then in the final month of Q4, EVA prices maintained stability on the back of stable demand and consumption rates and moderate availability of supplies in the market.
Asia
EVA prices decreased consistently during quarter IV of 2022 amid stable to low demand sentiments. For an initial couple of weeks, prices were firm and rose marginally due to limited feedstock supplies. After that prices started to decrease and fell till the end of the quarter. In the mid-quarter, EVA prices declined amid improved feedstock availability after the restart of feedstock Ethylene plants, including Idemitsu Kosan, with a capacity of 6,90,000/MT, production improved, and the cost of EVA decreased. Towards the end of the quarter, prices plunged again in Asia amid destocking practices by producers and a decline in global freight charges.
Europe
In the European region, EVA prices oscillated during Q4. Initially, the product prices decreased amid the decline in end-user consumption rates and firm production rates due to the surplus availability of feedstock Ethylene supplies and the consequent reduction in production costs of EVA. However, during the mid-quarter, prices inclined upward, and production was hampered due to the production cut of feedstock and the increase in the input prices. Towards the end of the quarter, EVA prices plunged noticeably on the back of weak offtakes and a decrease in the feedstock and production costs amid a reduction in the input costs.
For the Quarter Ending September 2022
North America
EVA prices fall consistently during Q3 of 2022 in North America, more significantly in H2 of the quarter. During the first month of the quarter, prices decreased marginally due to firm feedstock prices and stable production costs, while the demand was moderate from the end-user sector. However, from the mid of third quarter, the feedstock Ethylene and Vinyl Acetate prices plunged significantly because of an increase in their inventory levels and a decline in the offtakes by downstream industries. It reduced the fixed costs on the production values. Subsequently, after witnessing a plunge in the previous quarter's prices, Ethylene Oxide in the USA settled at USD 2873/MT.
Asia
The prices of EVA decreased consistently in the Asian region during Q3 of 2022. The upstream cost pressure decreased on the product values due to the consistent decrease in feedstock Ethylene prices. Simultaneously, Vinyl Acetate prices also fell more significantly in the H2 of the quarter on the back of weak demand sentiments by the downstream processors. Additionally, the depreciation in the currency values of major producers like China due to the economic slowdown amid frequent lockdowns negatively impacted the product's prices. At the end of the quarter, Ethylene Vinyl Acetate China's discussions settled at USD 3115/MT, after an average decrease of 7% in the previous quarter's prices.
Europe
In Europe, EVA prices decreased throughout the third quarter of 2022. A consistent reduction in feedstock Ethylene prices due to reduced offtakes from downstream industries and a simultaneous plunge in vinyl acetate prices reduced upstream cost pressure and declined production costs. At the same time, the weak demand for EVA and no significant offtakes by downstream buyers amid high inflation resulted in increased inventory levels despite production curtailment due to tight input supplies from the exporters. After witnessing substantial reductions in the previous quarter's prices, Ethylene Vinyl Acetate discussions in Germany settled at USD 3398 USD/MT at the end of Q3, 2022.
For the Quarter Ending June 2022
North America
Ethylene Vinyl Acetate (EVA) prices in the American market increased throughout the second quarter of 2022. The Increasing costs of upstream products Ethylene and Vinyl Acetate Monomer (VAM) due to high feedstock natural gas export rates to Europe and high demand from the downstream textile industry, respectively, assisted the rising price trend of EVA in the US. During the end of Q2 2022, major manufacturers of upstream VAM and feedstock Acetic acid like Celanese and INEOS issued Force Majeure worsening the supply condition and increasing the EVA prices in the US. Strong demand from the packaging sector further aided the price hike of EVA in America.
APAC
In the Indian market, the Ethylene Vinyl Acetate (EVA) price remained stable and had minimal fluctuation during the second quarter of 2022. The price rose slightly at the end of Q2 2022 due to supply disruptions from South Korea, owing to the trucker's strike. In China, the prices of EVA dropped throughout the second quarter of 2022. The restrictions placed on the Chinese market during Q2 2022 to curb the covid resurgence reduced the demand for downstream industries like packaging and building in the domestic market. The steady supply of feedstock Natural gas from Russia further eased the price of EVA in China.
Europe
The prices of Ethylene Vinyl Acetate (EVA) in the European market increased throughout the second quarter of 2022. Due to the energy crisis, the supply of upstream Vinyl Acetate Monomer (VAM) and Ethylene were disrupted and raised the price of EVA during Q2 2022. The market cost of EVA further increased on the back of high feedstock Natural gas prices due to the sanctions against the imports of Russian oil and gas by several European countries. The supply of upstream VAM was limited in the market because of Force Majeure issued by a significant manufacturer like Lyondell, which assisted in the price hike of EVA during Q2 2022 in the European market.
For the Quarter Ending March 2022
North America
The price rise of Vinyl Acetate Ethylene redispersible powder abetted by government infrastructure development proposed during the fourth quarter of 2021 elevated the demand of construction products like Vinyl Acetate Ethylene redispersible powder during the Q1 of 2022 in the American market. The upstream Ethylene price in the American market was peaking till January and prices started to drop owing to ease in refinery margins stabilized demand and continued supply chain disruptions throughout the quarter, albeit with improved rail car availability, despite the decrease in upstream price during the first quarter of 2022 in the American market the price of Vinyl Acetate Ethylene redispersible powder price was rising on the back of strong sentiments from the downstream construction sector during Q1 of 2022. As per ChemAnalyst data, VAE RD assessed around USD 2950/MT during March 2022.
Asia Pacific
The Prices of Vinyl Acetate Ethylene redispersible powder in the Asian market was mirroring the upstream Ethylene market and was rising throughout the first quarter of 2022. In China despite the dull demand from the downstream construction sector owing to the winter Olympics held in Beijing, the upstream ethylene market was strong enough to keep the Vinyl Acetate Ethylene redispersible powder price from dropping in the first quarter of 2022. In the Indian Market, the prices of Vinyl Acetate Ethylene redispersible powder price was increasing on the back of strong market sentiments for the downstream construction materials during Q1 of 2022. VAE RD prices hovered around USD 3040/MT in India during March 2022.
Europe
In the European market the prices of Vinyl Acetate Ethylene redispersible powder were soaring due to high upstream Ethylene prices on the account of sky-rocketing feedstock natural gas price because of sanctions on imports of Russian gas and oil by various European countries as a sign of opposition of Russia's invasion of Ukraine. The home improvement sector in Europe during Q1 of 2022 was performing well where of Vinyl Acetate Ethylene redispersible is widely used in construction materials, due to high demand from end user abetting the upward trend of Vinyl Acetate Ethylene redispersible powder prices during Q1 of 2022. VAE in Europe price hovered around USD 3420/Mt during March 2022.
For the Quarter Ending March 2022
North America
North America saw an increase in Ethylene Vinyl Acetate (EVA) price during Q1 2022 and was observed to be around USD 2793/ton FOB Texas in the first quarter. The Ethylene Vinyl Acetate market in the USA witnessed an overall increase in demand during the quarter ending March. Higher freight cost during the initial phase, and surging demand from domestic and overseas markets led to increased prices. The prices of ethylene in the US rose sharply during the first quarter of 2022 due to Russia-Ukraine war, which surged the prices of Ethylene Vinyl Acetate.
Asia
In Asia, the prices of Ethylene Vinyl Acetate (EVA) were witnessed to be fluctuating in the first quarter of 2022 in India and China. In contrast, in South Korea and Thailand, the prices were increasingly taking pressure from domestic raw material costs amid stable to solid demand from the domestic market and variation in the price of ethylene and vinyl acetate, thus increasing prices. The price began at USD 2310/ton EVA 18% Fob Bangkok in Thailand. In February, the Chinese EVA market faced supply tightness as raw material supplies were hard to source for the manufacturers due to the Chinese government’s winter air pollution control regulations that mandate production cuts for refineries and manufacturing units during the peak winter season.
Europe
Europe saw an increase in Ethylene Vinyl Acetate (EVA) price in the first quarter of 2022, where the price went up to USD 5520/ton EVA 28% FD Hamburg by the end of March. The European bloc experienced some supply-side tightness due to lowered imports from Korea and increased natural gas prices in the region due to the ongoing war between Russia and Ukraine. Sturdy demand from downstream sectors for boots, gloves, fishing rods, etc., in Europe, led to increasing prices of Ethylene Vinyl Acetate. In addition, the constant rise in the freight charges and unavailability of an adequate number of shipping containers also contributed to marking a significant increase in the values of Ethyl Vinyl Acetate.
For the Quarter Ending December 2021
North America
The US Ethylene Vinyl Acetate market had seen an overall reduction in demand during the quarter ending December as exports had been owing higher cost of freight during the initial phase and a general slump in demand from both domestic and overseas markets ahead of the holiday season. Exports into Chinese market were hard to flow in as there was congestion at major container terminals which persists till date. Mexico and Brazil too had seen a fall in demand for the US EVA ahead of the holiday season. The prices of ethylene in the US had risen sharply during the period mid-September to November. However, the effect of the narrowing in EVA to Ethylene spread had no effect on the prices of EVA during the month of December as export demand stagnated.
The EVA market is set to see shoots of recovery in the new year as demand usually improves in the post-holiday period and the prices of Ethylene during the first week of January had seen a significant increase of USD 75-90/MT. The spot offers for Vinyl Acetate Monomer too had seen a significant increase.
Asia
EVA market in Northeast Asia had sustained the rise in prices during September of Q3 through into October as prices had remained at the USD 4400/MT as of mid-October for the EVA (28%-33%) assessed on an Ex-Works basis. Demand from the photovoltaic cells industry had kept the prices afloat during the month of October. However, the prices of started to fall by the last week of October and by mid-November the average price of EVA (28%-33%) was at USD 3520/MT which was a 20% depreciation. The fall in prices continued in the month of December as end user market did not offer much of a scope. The prices however are expected to improve in the month of January from a combined effect of production cuts in exporting countries like Korea and Chinese Taipei as well as an increase in demand from Asia.
India’s scenario was not different with demand tapering off by the closing week of October and continuing to fall till the close of December. The prices for Q4 were on an average much higher than the Q3 prices for both EVA 18% and 28% grades assessed on an Ex-Delhi NCR basis. In India too the prices for EVA are set to rebound in the new year as imports from Korea are expected to be tight until the end of February as per information from manufacturers in Korea as well as traders in India. The contract offers for January have significantly improved over December levels.
Europe
The European bloc experienced some supply side tightness due to lowered imports from Korea as well as increased natural gas prices in the month of December. The Nord stream pipeline flow rates have been lowered by Russia citing extreme freezing weather conditions and chances of clogging. The prices were on an average lower in Q4 compared to Q3. The demand from the end user Phot voltaic encapsulation industry usually goes down in Northwest Europe during the winter times, thus demand for EVA (28%-33%) was lower overall during Q4.
The outlook for Q1 of FY22 remains mixed with demand likely to stagnate during the month of January until mid-February. But the month of March could see demand picking up and the prices in general are likely to be higher than the Q4 of FY21 prices.
For the Quarter Ending September 2021
North America
In Q3 2021, hike in the prices of EVA was observed in North America backed by the spike in the prices of raw materials and squeezed availability of the product. In addition, curtailment in the production rates due to the impact of severe climate calamity in this quarter also contributed to the snug supply of Ethylene Vinyl Acetate in the regional market which consequently led to the rise in the values of the product. However, firm demand for EVA from the downstream sectors including adhesives, photo-voltaic encapsulations, films, and others kept the market dynamics firm in this quarter.
Asia
In Asia, Ethyl Vinyl Acetate (EVA) prices witnessed a buoyant rise following Acetic Acid values across the region in the third quarter of 2021. Moreover, limited supply amidst its firm demand also contributed to the inflation in the prices of EVA in this timeframe. In India, EVA prices soared throughout the quarter backed by the constraint availability and several other factors such as congestion at few ports of China, indefinite plant turnarounds in the USA and prolonged container shortage. Furthermore, constantly spiraling freight cost also sent ripples to the prices of EVA in India. Therefore, 25% Ethylene Vinyl Acetate EX-Depot Delhi-NCR prices settled at USD 3119.02/MT in September showcasing an increment by USD 391.36/MT since July.
Europe
In Q3 2021, EVA prices kept tracing an upward trajectory due to the sturdy demand from downstream sectors in Europe. Moreover, spike in the values of Acetic Acid and high production cost also led to the rise in the prices of EVA in the quarter ending September. Besides, delayed imports from the US due to the impact of Ida hurricane led to the scarcity of feedstock Ethylene and VAM that further aided the inflation in its prices in this timeframe. In addition, constant rise in the freight charges and unavailability of adequate number of shipping containers also contributed to mark a significant rise in the values of Ethyl Vinyl Acetate.
For the Quarter Ending June 2021
North America
North American market experienced huge spike in prices of Ethyl Vinyl Acetate (EVA) during this quarter backed by firm demand from downstream sector amidst halted supply activities in USA. Post freezing disruption, supply activities of petrochemicals from the Gulf of USA improved month over month in comparison to previous quarter, but the supply for feedstock products remained inadequate to satisfy the overall demand. Prices of feedstock chemicals including VAM (Vinyl Acetate Monomer), and Ethylene remained high during this quarter, due to firm demand from downstream sectors and inadequate supply. This shortage led to steep rise in prices of EVA in North American region during Q2 2021.
Asia
Ethyl Vinyl Acetate (EVA) prices varied country over country in the Asian market due to several domestic and global factors during Q2 2021. In China, consistent increment in prices was observed during this quarter, backed by firm offtakes from photo voltaic cell manufacturers in solar power sector and adhesives in the country. However, other factors like container shortages, and rising freight cost, further increased the prices of country’s exported cargoes. While in India, prices of EVA fluctuated with uncertain demand from downstream sectors, in effect of another surge of pandemic in the country. Therefore, the price of 28% EVA hovered around USD 1904/MT and USD 2218/MT for China and India respectively during the first week of June.
Europe
Europe witnessed huge rise in prices of EVA during this quarter, supported by prolonged supply deficit of feedstock VAM and Ethylene from USA. Prices of feedstock Ethylene and VAM also rose in the meantime, due to critical shortage and firm demand from their respective downstream segments. However, demand for EVA in Europe remained strong throughout the quarter, supported by firm offtakes from adhesives and paint manufacturers.
For the Quarter Ending March 2021
North America
Production of EVA in the US remained shallow due to the freezing winter storm, that disrupted various production activities around the US Gulf. Several manufacturers were forced to shut down their plants until the weather improves, e.g., Celanese was compelled to declare a force majeure upon its EVA plant based in Texas. In addition, feedstock Vinyl Acetate monomer (VAM) FOB US prices showcased consistent uptick in US during February and fluctuated between USD 1425-1460 per MT which led to the rise in prices of EVA in US and global market during the quarter.
Asia
In the Asian market, EVA prices remained firm weighed by the limited availability of upstream Acetic Acid and feedstock Ethylene & Vinyl Acetate Monomer (VAM). Prices of all the upstream and feedstocks remained high due to the global shortage as a repercussion of the US winter storm. In the Asian market, due to high VAM prices traders restrained to purchase EVA which created a domestic shortage across the region, leading to another rise in EVA prices in the domestic market. Acetic Acid prices remained highly bullish and rose by more than 44% across the quarter in Asia. In the Indian market, prices of 28% EVA rose by 3.24% and settled at USD 1779.75 per MT.
Europe
European EVA, VAM and Acetic Acid manufacturers were opportune to take over the market, when the US manufacturing capability reduced due to the winter storm. Bullish buying sentiments across Asia amidst the US freeze crisis skyrocketed the import demand and its prices, although the overall output remained insufficient to satisfy the demand. This bullish nature is expected to come down in the forthcoming quarter, as most of the plants across the US have come onstream.
For the Quarter Ending September 2020
Asia
Asia’s ethylene vinyl acetate market is bracing the tightened product supply because of the restricted output combined with steady & lull demand. Supply disruptions in China due to maintenance turnaround at Yanshan Petrochemical’s plant till end-July tightened the product availability backed by production outages at BASF-YPC’s plant. Due to weak supply and firm on-spot demand prices of 14-20% VA-content EVA rose to USD 1100-1150/tonne CFR SE (southeast) Asia in July. Buoyant demand from the end users like adhesive producers and photovoltaic helped in maintaining market optimism. On the feedstock front, stable Ethylene import prices helped in uplifting the producer’s margins.
North America
Regional Ethylene Vinyl Acetate supply was affected by the production outages announced by the key market players entering the third quarter, which are expected to show their effect in supplies in fourth quarter as well. Logistics challenges faced due to seasonal storms and Hurricane Laura in the Gulf coast regions restricted the overall product supply.
Europe
EVA availability turned lower in the third quarter of 2020, not only due to plant shutdowns in various regions in Texas and Germany but also because of the outages heard outside Europe. The third quarter saw the significant rise in the demand of EVA which is correlated with sturdy consumption in the paints and coatings sectors. The demand uptick was strongly by active restocking ahead of the year-end and Christmas holidays.
