EVA prices steady-to-firm on supply concerns, eye on substitutes
Asia’s ethylene vinyl acetate (EVA) prices are stable-to-firm on sporadic deals and discussions for cargoes loading at the end of August or in early September.
Most producers were planning to increase their prices because of supply concerns, but they have remained cautious in targeting substantial price hikes given the availability of lower-priced substitutes such as polyolefin elastomers (POE).
Key producers said the current EVA prices are largely at the published ranges, but may fall if recent crude futures continue to decline, which may cause a significant impact EVA demand.
Formosa Plastics Corporation (FPC) shut its 240,000 tonne/year low density PE (LDPE)/EVA swing plant at Mailiao from 2 August to 6 August for a routine inspection and replacement of certain plant parts, according to a company official. The company has resumed its operations at 100% capacity this week, the official said, adding that the loss in EVA output during the shutdown was estimated to be around 3,500 to 4,000 tonnes.
VA content 14-20%
Prices of low VA content EVA were assessed as up by $10/tonne at $2,510-2,550/tonne CFR China Main Port (CMP)/SE Asia/south Asia, capturing sporadic offers and selling targets for cargoes loading in August or early September.
A key supplier of Taiwan-origin 18% VA content EVA raised its offers by $20/tonne to $2,520/tonne CFR CMP/SE Asia for cargoes loading in August. However, there were no confirmed deals heard to be concluded at such levels at the end of Tuesday.
Other major producers are expected to increase their prices moderately.
Offers of other northeast Asia origin 18% VA content EVA with a melt index (MI) of 2 were heard to be stable at $2,600/tonne CFR CMP/SE Asia for shipment in August, but the deals were limited to small quantities at around $2,550/tonne CFR CMP/SE Asia/south Asia because of the prevailing poor demand, the producer said.
Fresh offers of southeast Asia-origin 18% VA content EVA, which have been exempted from import duty, have not been finalised because of the cautious buying sentiment this month, according to the producer.
The producer last sold around 3,000 tonnes of the low VA content EVA at $2,550/tonne CFR CMP/SE Asia/south Asia for loading in August or early September.
In the Chinese domestic market, prices of local 18% VA content EVA were heard to be firmer for a second consecutive week at yuan (CNY)19,500-19,800/tonne EXWH, up by CNY500-600/tonne.
In south Asia, prices of the low VA content EVA were assessed as $10/tonne higher at $2,510-2,550/tonne CFR south Asia, following deals for the benchmark 18% VA content EVA cargoes at the high end of the range for loading at the end of August as the supply of lower-priced material has been depleted.
A 100-150 tonne southeast Asia-origin cargo at $2,550/tonne CFR India for loading at the end of August was heard to be booked by an end-user in the downstream footwear sector. This was $50/tonne higher than bookings made in the previous week.
VA content 22-30%
Prices of higher VA content EVA across Asia were assessed as $10/tonne higher after the supply of lower-priced material dried up.
Fresh offers of Taiwan origin 28% VA content EVA with MI 150 were heard at $2,680-2,690/tonne CFR NE Asia/SE Asia/south Asia, up $20-30/tonne from mid-July.
Offers of southeast Asia-origin 28% VA content EVA with MI 7, 20 and 40 were heard to be higher at $2,800/tonne CFR NE Asia/China, up $50/tonne on the week. However, there were no deals heard to be concluded at these levels as China-based buyers and traders adopted a wait-and-see stance after their recent purchases.
Offers of 28% VA content EVA with an MI of 150 or 400 were heard at $2,840-2,850/tonne CFR NE Asia/SE Asia, but buyers’ response remained subdued, the supplier added.
Transactions in the Chinese domestic market for the 28% VA-content grade have risen to CNY22,500-23,000/tonne EXWH, up by CNY1,000/tonne during the week as local suppliers raised their offers because of supply concerns following recent production issues in Taiwan.
Production data
China’s DuPont Packaging & Industrial Polymers (P&IP) and Sinopec’s joint venture 60,000 tonne/year EVA plant at Yanshan in Beijing is scheduled to be shut on 15 August for a month-long turnaround, according to sources close to the company.
($1 = CNY6.44)
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