| SINGAPORE (ICIS news)--Asian ethylene vinyl | | | | adding that he was avoiding the South Asian market, |
| acetate (EVA) with 18% VA content prices have | | | | “because most buyers had no idea what price to |
| fallen 8.5-14% from July highs due to resistance from | | | | buy at and there are stocks still stuck at the |
| China and India’s downstream footwear industries | | | | ports.” |
| amid slowing global economies, producers and | | | | “Inventories are building up but it is still manageable. |
| end-users said on Thursday. | | | | We hope demand will return in October,” he added. |
| The product hit record highs of around $2,460/tonne | | | | Meanwhile, India-based converters had been turning to |
| CFR (cost and freight) China, and $2,505/tonne CFR | | | | substitutes or additives in their footwear |
| South Asia in July. | | | | manufacturing processes in the wake of skyrocketing |
| When expected pent-up post-Beijing Olympics | | | | EVA prices. |
| demand failed to materialise this month, some | | | | “There is not much demand now although it is |
| producers dropped September prices of 18% VA | | | | approaching the end of the monsoon season,” an |
| content EVA cargoes in China by 8.5% to | | | | official from a local footwear manufacturer said. |
| $2,200-2,300/tonne CFR China amid mounting | | | | “There has been product line shifts and EVA prices |
| inventory pressure. | | | | had already seen very high levels so prices should |
| This represented the first price decline in two years. | | | | normalise now that crude values have come |
| Record high EVA prices amid earlier robust demand | | | | down,” he added. |
| from the downstream footwear sector and rising | | | | While the industry may have seen its best days in the |
| labour costs in China contributed to the demise of | | | | footwear application sector, it was still far from doom |
| numerous small- and medium-scale footwear factories, | | | | and gloom for EVA makers as healthy margins in the |
| a Taiwan-based EVA producer said. | | | | higher VA content EVA market remained healthy. |
| September business to South Asia was also | | | | Several northeast Asia-based EVA producers have |
| concluded lower by around 14% at $2,130-2,180/tonne | | | | adjusted production ratios at their plants to that of |
| CFR India, reflecting a $150-200/tonne week-on-week | | | | higher 28% VA content material – which goes into |
| loss. | | | | the hotmelt adhesives and cable and wire applications |
| “The India market is generally the lowest priced | | | | – owing to recent global supply shortages. |
| market in Asia if demand in China is poor. So some | | | | Others eyed a slice of the growing market for |
| suppliers have to sell at this price,” a Korea-based | | | | 30-33% VA content EVA for solar panel |
| producer said. | | | | applications. |
| He added that they have not decided if they want to | | | | Major EVA producers in Asia include Formosa Plastics |
| sell at lower prices to South Asia to keep their market | | | | Corp, Hanwha Chemical Corp, Lotte Daesan |
| share. | | | | Petrochemical, The Polyolefin Company, TPI Polene |
| “Margins are there but it is so difficult to conclude | | | | and YPC BASF. |
| deals,” a southeast Asia-based producer said, | | | | |