Ethylene vinyl acetate Prices, markets & analysis
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Ethylene vinyl acetate Overview Transcript
Ethylene vinyl acetate, also known as EVA, is a plastic product derived from the copolymerisation of ethylene with vinyl acetate.
EVA’s main advantages include its properties of clarity and toughness, along with strong flexibility and ability to withstand low temperatures. It also has good tear resistance.
The main uses for EVA are in the manufature of stretch film for shrink wrapping, protective strips, sports shoe soles, sandals, slippers and disposable medical equipment. It is also used as a coating for heat-sealing on polypropylene, polyethylene terephthalate and aluminium films. Other uses include insulating tubing and wire-coating.
In recent years supply of the lower EVA grades has been dwindling as producers focus production on grades with vinyl acetate content of above 30% in response to growing demand for this grade from the solar panel industry.
Supply and demand fundamentals drive Asia’s EVA prices. Demand has outstripped supply in recent years with strong interest from the downstream footwear sector and increasingly, the photovoltaic industry. Other key influences on the market include price trends of polyethylene because most EVA factories in Asia are EVA and PE swing plants
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Ethylene vinyl acetate: Market overview
Ethylene vinyl acetate (EVA) spot prices in Asia narrowed the gap with co-product low density polyethylene (LDPE) prices since the fourth quarter of 2013, bolstered by limited supply and buoyant demand from the key downstream footwear industries in China and India for the primary grade EVA containing lower vinyl acetate (VA) content.
Supply of the EVA grades with lower VA content had been curtailed in the fourth quarter of 2013 on the back of comparatively higher prices of LDPE, as producers of swing plants switched output to the higher yielding product. Some producers had also focussed production on the photovoltaic grade EVA with 30-33% VA content.
The recovery in demand for the photovoltaic grade EVA from the downstream solar panel industry late in 2013 coupled with the onset of the peak manufacturing season in the downstream footwear sector – which is expected to prevail until March 2014 – is expected to prop up EVA prices in the first quarter.
The prospect of new EVA capacities coming onstream in South Korea and Saudi Arabia by March, however, was widely expected to start weighing on EVA prices at that time.
Updated to mid-Jan 2014
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Ethylene Vinyl Acetate Methodology
About Ethylene vinyl acetate
Ethylene vinyl acetate (EVA) is a copolymer that is manufactured from ethylene and vinyl acetate monomer (VAM). The main advantages of EVA is that it has good toughness, flexibility, clarity and gloss, the ability to withstand low temperatures, and good tear resistance.
In packaging applications, the resins can be made into blown, extruded, cast and coextruded films, or blended with other resins. They can be moulded and extruded into soft plastic items such as hoses and tubes, formulated into hot melt adhesives, and used in plastic compounding, wire and cable insulation.
EVA is also used as a coating for heat sealing on polypropylene (PP), polyethylene terephthalate (PET) and aluminium films. A growing use for EVA is in solar cells as an encapsulation material.