[Industry Focus]：Negative operation of the domestic EVA market, in stock prices fell sharply

In the past month, the domestic EVA market has been running negatively, and in stock prices have fallen sharply. According to the commercial and social commodity market analysis system, as of June 12, the average ex-factory price of EVA in China was 12833.33 yuan/ton, down 9.41 percent from the previous month.

Raw materials: since mid-May, the ethylene market has been weak in terms of raw materials. Due to the fluctuation of crude oil, the cost of petroleum brain has fallen by how much, and the wait-and-see sentiment in the international market has intensified. At present, the domestic supply is sufficient, the transaction is light, and the overall market momentum is sluggish. The current lack of profit in the market, ethylene prices may continue to be weak.

Vinyl acetate has also weakened in the past month, domestic downstream factories have not started well, and market consumption tends to maintain production. New production and maintenance coexist on the supply side, but the market is well stocked and the pattern of oversupply remains unchanged. Overlay raw material end support is not good, the cycle of vinyl acetate in stock market finishing weak. EVA raw material market is weak, EVA market support is weak.

Supply side: in the past month, the main pattern of EVA industry operating rate is high adjustment. The overall operating rate of enterprises in the interval is high first and then low, between 92%-80% for sorting and operation. In June, although the overhaul of domestic EVA enterprises increased, the operating rate did not leave the high level due to the production of new equipment in Gulei. Production synchronization high, the monthly output of about 205300 tons, the market supply is sufficient. Factory inventory pressure, factory prices fell. There is also pressure on stocks in the society. Traders tend to let profits place orders, causing the in stock prices of mainstream brands to drop sharply in the past month. Although the factory intends to stabilize the ex-factory price, but to stabilize the market.

On the demand side: in the past month, EVA's domestic market atmosphere is weak and difficult to change. The buyer's camp was also affected by news such as new production equipment, and the stocking operation was cautious. Terminal enterprises to follow up lag, shoes and other consumer low-cost frequent, low trading volume, resulting in long-term weak demand for foam materials. Under the long-term influence of high load and high inventory in the industry, the demand for major consumer photovoltaic materials in the early stage is gradually decreasing. Businessmen have a low mentality, poor flow of goods, and there is room for a dark drop in firm offer negotiations. The overall transaction price of the market is biased towards buying at low prices, and there is a conflict between enterprises and high-priced supply. The current demand-side impact on EVA prices continues to be negative.

In general, the EVA market has performed negatively in the past month, with prices falling by nearly 10%. The raw material market is weak, EVA in stock support is insufficient, downstream demand is low, EVA in stock support is not good, EVA industry high load, high inventory overlay, making it difficult to find the domestic EVA market medium-and long-term benefits. Polymerization plant to reduce the ex-factory price to the warehouse, traders with the market. At present, the market quotation is mostly profitable, and the operation of price reduction orders has increased. The business community believes that the main guiding factor of the current market is the contradiction between supply and demand. As EVA prices have fallen to low levels, the EVA domestic market is expected to narrow in the near future.

On the demand side: in the past month, EVA's domestic market atmosphere is weak and difficult to change. The buyer's camp was also affected by news such as new production equipment, and the stocking operation was cautious. Terminal enterprises to follow up lag, shoes and other consumer low-cost frequent, low trading volume, resulting in long-term weak demand for foam materials. Under the long-term influence of high load and high inventory in the industry, the demand for major consumer photovoltaic materials in the early stage is gradually decreasing. Businessmen have a low mentality, poor flow of goods, and there is room for a dark drop in firm offer negotiations. The overall transaction price of the market is biased towards buying at low prices, and there is a conflict between enterprises and high-priced supply. The current demand-side impact on EVA prices continues to be negative.

In general, the EVA market has performed negatively in the past month, with prices falling by nearly 10%. The raw material market is weak, EVA in stock support is insufficient, downstream demand is low, EVA in stock support is not good, EVA industry high load, high inventory overlay, making it difficult to find the domestic EVA market medium-and long-term benefits. Polymerization plant to reduce the ex-factory price to the warehouse, traders with the market. At present, the market quotation is mostly profitable, and the operation of price reduction orders has increased. The business community believes that the main guiding factor of the current market is the contradiction between supply and demand. As EVA prices have fallen to low levels, the EVA domestic market is expected to narrow in the near future.