Ethylene vinyl acetate (EVA) copolymer prices are expected to prevail on a steady to firm trend, driven in part by the onset of the peak demand season in the downstream footwear sector in south Asia for foaming-grade EVA.
A firmer outlook on the values of feedstocks naphtha, ethylene and vinyl acetate monomer (VAM) – on the back of volatile crude futures pricing, amid ongoing supply worries and tensions between the west and Iran – further contributed to the positive outlook on EVA pricing.
Tightening supply because of turnarounds at two EVA plants in Taiwan and South Korea in March, as well as curbed supply of competitively priced foaming-grade EVA from Brazil for February shipments, is also expected to prop up prices going forward.
The upward price trend, however, could be tempered by cautious buyer sentiment amid concerns over the global economic outlook and eurozone debt crisis. End-users in the downstream footwear and photovoltaic (PV) industries said they were likely to continue procuring raw materials on a hand-to-mouth basis. Traders also foresee that operating rates at global PV sheet producers’ plants could remain low over at least the next three months, owing to the supply overhang and depressed pricing of solar panels.