EVA Market Is Not Promising In The Short Term

The support for the cost side is weak, and the atmosphere of domestic vinyl acetate Market is not strong. Due to the restriction of the state purchase order and the real estate regulation policy, the construction industry downturn has made the downstream white latex start low; the appreciation of the renminbi has led to an increase in export pressure, a decrease in terminal textile exports, a low demand, a limited procurement of vinyl acetate, and a slow digestion. Although Sinopec Southern China sales company quoted slightly increased price, but the high price of the market is difficult to see transactions, mostly low price list.

Asian ethylene has recently been stimulated by tight supply, prices have risen slightly, and the market has been trading at a low price. With the cracking device in Japan, the tight supply situation of ethylene market has eased slightly, and its market offer has declined slightly. From the end of April to the beginning of May, some parts of South Korea and Japan were driven by cracking devices. It is estimated that the tight supply situation of ethylene will ease, while downstream demand has no obvious improvement. It is estimated that the ethylene market may decline slightly.

The supply side is ample, and the supply of goods is adequate. The Beijing EVA plant produces HM1-I7.0, 140 thousand tons of new low density devices produce EVA18J3, and the output of EVA is about 4700 tons. The supply of goods is basically normal in the later stage. Due to the early market impact, most businesses have been stockpiling properly, but the market has not yet seen improvement. The EVA market is slowly digested.

In the face of increasingly depressed market, traders in order to reduce inventories, make more profits and sell goods, the phenomenon of selling goods is increasing, making the market worse. However, because of the high cost support, the profit margins are narrow; some traders have to avoid excessive profit making, resulting in losses, or even selling them. Therefore, the economic downturn, high cost and contradiction between supply and demand led traders to survive.

Demand is hard to see better. It is understood that in February, the production of greenhouse film was significantly reduced than in January, and the output of scale enterprises was 500~1000 tons, and the operation rate of plastic film manufacturers increased to 70% to 80%. Because of the difference in industry and seasonal demand, there is a difference between the greenhouse film and the plastic film. In addition, the manufacturers' orders in North China are not ideal, and the order in the northwest region keeps a good growth. After entering the March, the plastic film coverage rate has gradually reached saturation. At the same time, the weather is getting warmer, and the demand has not increased or reduced. Under the rapid rise of raw material prices, the downstream dealers have a wait-and-see mood, and manufacturers are cautious in purchasing. It is difficult for EVA market to build up momentum.

The Asian market is also bad. Businessmen have more money to wait and see, the market atmosphere is light, the price is not obvious, and the volume is shrinking. There are no signs of warming in the short-term fundamentals, and are still the leading factors affecting the operation of the market.

The macroeconomic situation is not optimistic. At present, the global economic recovery is sluggish. Although the US economy has improved, it has not been fundamentally reversed and is still hovering at the bottom. Europe's economy is largely threatened by the European debt crisis, which still threatens to further deteriorate. These factors restrict the prospects of commodities. Demand for commodities is also showing signs of weakness. The risk of future commodity prices will increase. Compared with a year ago, China's commodity demand growth rate is low, especially in the construction, manufacturing and export industries. The decline in the purchasing managers' index and retail sales data in the manufacturing sector, the decline in the size of the new RMB loans and the decrease in net exports in China reflect that the manufacturing industry is facing a severe test. This year's economic slowdown is also a foregone conclusion.

But the EVA market is not without good market. With the arrival of domestic and international maintenance season, there will be tension in the late market supply side. It is understood that South Korea's LG company will have 4 days overhaul plan, Formosa Plastics also has a 2 week overhaul plan, Thailand, Japan Sumitomo chemical, East Cao also has the maintenance plan, or inject some vigor for the market.

To sum up, the EVA market is subject to the restrictions of downstream demand and purchasing power, and the market intermediaries lack confidence in the market outlook, with a slightly wait-and-see attitude and prudent operation. In addition, the current global economic situation is still grim and complicated. The mentality of the industry is turning pale, and the mentality is slightly confused. In the absence of favorable factors, the EVA market is hard to pick up, or will continue to disadvantaged.