Prices for EVA in Asia hit lowest point since August 2010 on weak demand; spot prices closed down to US$1,750-US$1,900/tonne CFR CMP week ending Dec. 13, off 30% since start of October
December 20, 2011
– Prices for ethylene vinyl acetate in Asia dropped to a 16-month low on weak demand that is likely to continue through the Lunar New Year, ICIS news reported Dec. 20, citing industry sources.
A major EVA buyer, China, will be on holiday for the week Jan. 22-28.
Spot prices closed down to US$1,750-$1,900 per tonne cost and freight China Main Port for the week ending Dec. 13, ICIS reported. Prices like this haven't been seen since August 2010, ICIS added. Since the beginning of October, prices for EVA in Asia have declined 30%.
The decline in EVA values has driven some producers operating EVA/low-density polyethylene swing plants to focus more on LDPE because the margins are better.
The slack demand for EVA will get worse in January as the Lunar New Year approaches, a northeast Asia producer told ICIS. Market insiders told ICIS that demand will likely pick up in February through June as that is the high season for the material, and price hikes might possibly follow.
The primary source of this article is ICIS news, Sutton, England, Dec. 20, 2011.