SINGAPORE (ICIS)--South Korea’s Lotte Chemical switched to producing low density polyethylene (LDPE) full tilt at its 130,000 tonne/year swing plant in Daesan since end-April, and this will last for the whole of May, a company official said on Tuesday.
The company plans to resume production of ethylene vinyl acetate (EVA) at the swing plant in June, the official said.
Meanwhile, Asia’s EVA spot prices edged lower, with declining transaction volumes, as the market has entered a seasonal lull in demand.
Buyers adopted a cautious approach – procuring cargoes on a hand-to-mouth basis – as they expect prices to fall further. The consequent widening of buy-sell spread continued to hamper trades.
Offers for non-Asian origin foaming grade EVA with 18% vinyl acetate (VA) content, for first half of June delivery, at $1,400/tonne CFR China Main Port (CMP) elicited bids at around $1,350-1,360/tonne CFR CMP. Discussions were ongoing.
During the week ended 25 April, prices of the foaming grade EVA with 14-20% VA content were at $1,380-1,480/tonne CFR CMP, down $20/tonne at the high end of the previous week’s assessment, ICIS data showed.
EVA with 14-20% VA content is used in the foaming/footwear industry.