US Ethyl Vinyl Alcohol Copolymer Prices Set to Decline in September 2024 Amidst Weak Demand

The Ethyl Vinyl Alcohol Copolymer prices in the US market are expected to decrease towards the end of the third quarter, with a possibility of decreasing further in the fourth quarter. This trend is projected to continue unless there are major production disruptions caused by hurricanes, which are predicted to be active in the final months of the year. Factors contributing to this price decrease include a reduction in domestic and export demand, as well as lower feedstock costs of Ethyl Vinyl Acetate which could lower the production costs of Ethyl Vinyl Alcohol Copolymer. Minimal demand for Ethyl Vinyl Alcohol Copolymer was attributed to pre-buying due to the hurricane season, while the slowdown was partially caused by market participants anticipating lower prices due to a decline in market sentiments. Consequently, the global ease in the shipping charges could lead the manufacturers to lower their offerings.

Concerns about global demand led to a decrease in crude oil prices during August-September, which is foreseen to subsequently reflect in lower contract prices for Ethyl Vinyl Alcohol Copolymer in September. With market participants anticipating cyclical increases in demand from the downstream automotive sector in October 2024, the excess supply of Ethyl Vinyl Alcohol Copolymer on the market offset any upward trend. However, any reduction in production will help to rebalance the market and is unlikely to influence spot export prices during September 2024. Looking ahead, the prevailing sentiment indicates that demand will remain weak, while supply will continue to be healthy. This suggests that downward pressure on polymer prices is likely to persist for the beginning of the fourth quarter of 2024.

However, in August 2024, the market of Ethyl Vinyl Alcohol Copolymer remained stable in the USA due to countervailing factors. While sentiment suggested a cautious approach to purchasing cargo disruptions caused by the hurricane season limited the import of Ethyl Vinyl Alcohol Copolymer from overseas, creating a balance between supply and demand. However, the US shipping department faced minor issues during August 2024 due to hurricane season which partially offset the declining demand. The overall market trend led towards a slowdown due to ample supply which prevented a more significant price drop. The downstream beverage and bottle sectors also experienced a decline in demand, further impacting the Ethyl Vinyl Alcohol Copolymer market which was exacerbated by off-season conditions. Henceforth, the US exporters faced difficulties in penetrating the Asia-Pacific market due to weak demand from end-users, forcing manufacturers to adopt a rollover strategy for the Ethyl Vinyl Alcohol Copolymer market during August 2024.