Chronicles of Major Events in the Domestic EVA Industry in the First Half of the Year

1. In the first half of the year, domestic EVA prices fell back to their lowest level in nearly three years

In the first half of 2023, EVA was operating at a low level overall, with prices rising first and then decreasing. From January to March, EVA prices fluctuated and rose, followed by a continuous decline in prices. Before spring, with terminal enterprises stocking up and new experts entering the market at a low level, EVA prices rebounded rapidly. After the Spring Festival, with the peak season of slippers and the demand for photovoltaics driving, phased demand support, EVA prices continue to rise. However, the overall demand in traditional industries has fallen short of expectations, and the EVA market prices have been under pressure all the way down. From the perspective of domestic hard materials, the average price of EVA in the first half of the year was 14686 yuan/ton, a year-on-year decrease of 32.34%. The price has dropped to its lowest point in nearly three years.

2. Gulei Petrochemical's EVA has been successfully put into production, and domestic EVA production capacity continues to expand

On May 11, 2023, the successful high-pressure feeding of Gulei Petrochemical's EVA device means that since then another heavyweight member has been added to the domestic EVA device, and the EVA capacity in South China has expanded to 500000 tons/year. By the first half of 2023, the number of domestic EVA production enterprises has increased to 14, and the total capacity of the domestic industry has reached 2.45 million tons/year.

The Gulei Petrochemical EVA unit adopts the ExxonMobil high-pressure tube method process, with a designed production capacity of 300000 tons/year, making it one of the largest single tube method production lines in China. EVA device is an important economic growth point for Gulei Petrochemical Company. After the device is put into operation, major devices such as ethylene will achieve full load operation, and various main technical and economic indicators, economic benefits, and overall competitiveness of the enterprise will be comprehensively improved.

With the release of Gulei Petrochemical's EVA production capacity, the EVA production capacity in South China has increased to 500000 tons, accounting for 30% of the domestic EVA production capacity distribution, which is in line with the EVA production capacity in the northwest region. The EVA production capacity in East China accounts for 47%, which is still the largest EVA production area in China.

3. Profit decline in the domestic EVA industry in the first half of the year

According to statistics, starting from December 2022, the profitability of the domestic EVA industry has significantly shrunk. Taking a domestic EVA hard material as an example, in the first half of 2023, the average factory price in East China was 15144 yuan/ton, and the average raw material cost was 9381 yuan/ton. From January to June 2023, the average profit of the domestic EVA industry was 5763 yuan/ton, a year-on-year decrease of 45.24% and a month on month decrease of 39.86%. The industry's profit has significantly decreased, but compared to most other petrochemical products, its profit level is still outstanding, and its production plan is still biased. From the perspective of EVA production costs, there was little change in product cost in the first half of the year, and the profit contraction was mainly due to the decline in EVA prices.

we supply  plasticizer  Dioctyl terephthalate (DOTP) ,   plasticizer Dioctyl Phthalate (DOP) ,  plasticizer Dibutyl phthalate (DBP) , plasticizer Dioctyl adipate (DOA)