Ethyl Vinyl Alcohol Copolymer continues to witness strong market dynamics

The prices of Ethyl Vinyl Alcohol Copolymer continue to rally upwards in the global market with booming demand fundamentals from the downstream packaging sector. The feedstock monomer market (Ethylene and Vinyl Acetate Market) is also under pressure from soaring upstream Crude Oil and energy prices from Q1 of FY22.

Upstream Crude prices surge as volatility persists amid the European Crisis. On Wednesday afternoon, the Brent Crude June contracts jumped more than 6 percent and traded at USD 108 per barrel, while the West Texas Intermediate (WTI) crude traded at USD 104 per barrel, after the peace talks between Russia and Ukraine hit a dead end. The skyrocketing Crude has been the primary concern for all the Crude derivative players. Getting transferred to its downstream Ethylene and Vinyl Acetate monomers weighed on the raw material costs of EVOH, prompting the manufacturers for a price increase for their product lines by around 10 percent this quarter, in the largest importing country, China, as per the ChemAnalyst database when compared to Q4 of 2021.

On the other hand, increasing the consumption of EVOH films for packaging in the food industry to reduce wastage and prevent chronic diseases related to food contamination has been the key driving factor in the global market. Its eco-friendly character and resistance to organic solvents and oil have increased the demand worldwide, fueled by a rapid movement in consumer preferences towards sustainable products with minimal carbon footprints.

As per ChemAnalyst, “Ethyl Vinyl Alcohol Copolymer prices will remain strong in the coming weeks with rising upstream value and strong demand from the downstream market. Additionally, EVOH films for packaging cosmetics and personal care items will propel the market forward. In the meantime, potential environmental impact and the high cost of packaging could affect the adoption of the packaging materials.”