| EVA : Weekly Report & Future Trend - 3rd Wk, Mar'23: (Dt: 18/03/2023- Posting Cycle : Weekly, Saturday) |
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Ethylene : $ 965/Mt Vinyl Acetate : RMB 7750/MT China Bazaar: In China, EVA purchases were slow. The adoption of a wait-and-watch mode by processors made the demand weak. And the prices stayed range-bound. Central Bank’s Effort to Trigger Consumer Demand On Friday, China’s central bank—People’s Bank of China—announced that it will cut the Reserve Requirement Ratio (RRR) for all banks by 25 basis points with effect from 27 March 2023. However, the banks which have maintained a 5% reserve ratio will be outside the purview of the announcement. RRR is the amount of cash banks should hold in order to maintain a certain liquidity level. Interestingly, the announcement has come after a few days of the new government taking office. And, the government has pledged to achieve a 5% economic growth this year. Therefore, consumer demand is expected to rise after 27 March 2023. And that implies the purchases of plastic based finished products could start increasing due to the higher liquidity flow in the country’s economy. If the move succeeds in pushing up end-products demand, purchased of plastic items will rise, pulling up R/M prices. Indian Bazaar : Custom Exchange Revision: On 17 March 2023, the GoI increased the Customs Exchange Rate by 0.20 points to INR 83.70/USD for imports. Buying Pulse: The continuance of need-based buying due to the dull R/M buying tendency among converters, which has been facing reduced end-product sales, kept EVA demand muted in Indian R/M bazaars. However, there is a possibility of the demand reversing from the next month due to the possible higher consumption of EVA based products in the summer season. In Delhi, we assessed basic open bazaar prices of EVA 18 % in the range of Rs 157-162/Kg. In Ludhiana bazaar, prices of EVA have been reported at Rs 166-170/Kg respectfully (Exclu. GST). Purchase Opinion: As the future demand situation is in a blurred state up until now, we considered the overall ruling bazaar situations—global and domestic—and the corresponding price regulators; and based on which, we advise need-based buying for the time being. |
| EVA : Weekly Report & Future Trend - 2nd Wk, Mar'23: (Dt: 11/03/2023- Posting Cycle : Weekly, Saturday) |
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Feedstock offer:Ex.China Ethylene : $ 965/Mt Vinyl Acetate : RMB 7900/MT China Bazaar: In the past week, the petrochemical bazaar remained strong, and the terminal demand showed a slow but steady improvement. However, the high social inventory continued to be a challenge, and it will take time to digest it. As a result, the EVA bazaar fluctuated within a narrow range. Overall, while the bazaar sentiment is supported by the expected improvement in photovoltaic demand, the high inventory is likely to continue to limit any significant upward movement in the EVA bazaar. Indian Bazaar: Latest Overseas Offer: Saudi Producer, SIPCHEM, has announced its latest offer of EVA for EVA3522 grade at USD 1920/Mt CIF NS, Mumbai ,for Mar'23 shipment. Buying Pulse: An Open Bazaar: EVA processors were not in a mood to invest in R/M as they were facing substantial hindrances on account of their poor end-product sales. Therefore, muted demand ruled the R/M bazaars, leaving the traders with no other options but to lower their spot prices. In Delhi, we assessed basic open bazaar prices of EVA 18 % in the range of Rs 161.5-163/Kg. Purchase Opinion: Encountering lesser finished products sales, EVA converters have curtailed their R/M procurements. As a result, traders in R/M bazaars saw sluggish demand. Again, the approach of the summer season has thrown a ray of hope of a possible demand revival, as EVA products gain sales during the season. We, from our end, advise R/M procurement for immediate needs, based on the price governing factors. |
| EVA : Weekly Report & Future Trend - 1st Wk, Mar'23: (Dt: 4/03/2023- Posting Cycle : Weekly, Saturday) |
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Ethylene : $ 985/Mt Vinyl Acetate : RMB 7800/MT China Bazaar : Chinese EVA buyers have not yet done away with their mood to wait and gauge the bazaar developments before stepping into purchases. As such, muted demand made its presence felt in the bazaars, and the spot prices remained unmoved. Indian Bazaar: Latest Overseas Offer: Saudi Producer, SIPCHEM, has announced its latest offer of EVA for EVA3522 grade at USD 1920/Mt CIF NS, Mumbai ,for Mar'23 shipment. Customs Exchange Rate: On 3 March 2023, the GoI decreased the Customs Exchange Rate by 0.15 points to INR 83.50/USD for imports. Buying Pulse: EVA sellers in Indian R/M bazaars saw lacklustre sales as the processors were not in a mood to lift the R/M actively. A few of the converters, spoken to, said that they faced substantial challenges to achieve satisfactory end-product sales, resulting in a dampened mindset for R/M purchases. In Delhi, we assessed basic open bazaar prices of EVA 18 % in the range of Rs *163-164/Kg. Purchase Opinion: It appears that the demand could strengthen, presumably from the next month, due to the increased offtake of EVA-based products in the summer season. And, the demand trend will regulate the price curve. For now, R/M purchases are advised for immediate needs. |
| EVA : Weekly Report & Future Trend - 4th Wk, Feb'23: (Dt: 25/02/2023- Posting Cycle : Weekly, Saturday) |
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Feedstock offer: Ethylene- CFR NEA: $ 945/Mt Vinyl Acetate-Ex China : RMB 7900/MT China Bazaar: The dull buying activities in China R/M bazaars indicate that there is no possibility of demand revival in the near term. Indian Bazaar : Latest Overseas Offers : Saudi Producer, SIPCHEM, has announced its latest offer of EVA for EVA3522 grade at USD 1920/Mt CIF NS, Mumbai ,for Mar'23 shipment. Buying Pulse: Inactive buying mentality among converters has kept the demand subdued in Indian EVA bazaars. In Delhi, we assessed basic open bazaar prices of EVA 18 % in the range of Rs 162-164/Kg. Purchase Opinion: Due to the high probability of the demand growing in the coming days, R/M procurement is advised at the current levels. |
| EVA : Weekly Report & Future Trend - 3rd Wk, Feb'23: (Dt: 18/02/2023- Posting Cycle : Weekly, Saturday) |
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Feedstock offer: Ethylene : $ 895/Mt Vinyl Acetate : RMB 7800/MT China Bazaar: Spot EVA prices have been subjected to downward pressure by the spread of weak demand in R/M bazaars. Traders tried to play a counter game by offering discounts for the obvious reason. But, their success has become questionable due to the cautious purchase mentality of the buyers, most of whom are keen in postponing buying for now. Indian Bazaar: Latest Overseas Offer: Saudi Producer, SIPCHEM, has announced its latest offer of EVA for EVA3522 grade at USD 1920/Mt CIF NS, Mumbai ,for Mar'23 shipment. Customs Exchange Rate: On 17 Feb 2023, the GoI raised the Customs Exchange Rate by 0.90 points to INR 83.65/USD for imports. Buying Pulse: This week, we did not see any improvement in EVA demand. And, we attribute the slackness in demand to the curtailment of R/M purchases by processors due to unsatisfactory finished-product sales. A Delhi-based trader said that he was selling EVA 18% within Rs 162-164/Kg. ( +GST) Purchase Opinion:A high possibility of the demand strengthening is on the horizon due to the converters preparing to meet the higher demand for their end-products during the summer season. If the demand goes up, the prices will also trace an upward curve. So, buying is suggested at the current levels. |
| EVA : Weekly Report & Future Trend - 2nd Wk, Feb'23: (Dt: 11/02/2023- Posting Cycle : Weekly, Saturday) |
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Feedstock offer: Ethylene : $ 880/Mt Vinyl Acetate : RMB 7500/MT Indian Bazaar: Latest Overseas Offers: South Korea based Lotte has announced its latest EVA offer for the 18% grade at USD 2000/MT on CIF NS,Mumbai. Buying Pulse : Dark clouds of poor demand have hovered in Indian EVA bazaars as converters have lowered their R/M purchases due to poor end-product sales. However, some bazaar participants expect the demand to reverse trend in the near term. Purchase Opinion: We felt the pulse of a firmer pricing trend in the near term. Therefore, R/M procurement is suggested at current levels. |
| EVA:Weekly Report & Future Trend - 1st Wk Feb'23. (Dt: 04/02/2023- Posting Cycle : Weekly, Saturday) |
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Indian Bazaar:
The preparedness of EVA processors to supply their products to the increased demand in the upcoming summer season has shown its effect on the EVA bazaars. Traders have witnessed stronger EVA demand, and that prompted them to push the spot prices upwards. As per a trader, EVA 18 % price hovered in range of Rs.168-169/Kg Ex Delhi + GST. Purchase Opinion: We advise buying at the current levels for now. Also, we advise buyers to keep an eye on the bazaar trends to have a sense of the price movements. |
| EVA: Weekly Report & Future Trend - 2nd Wk, Jan'23: (Dt: 07/01/2023- Posting Cycle: Weekly, Saturday) |
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Feed Stock Offers Ethylene Asia- USD/Mt 875 : CFR NEA (N/C) Vinyl Acetate CHINA - 7300 Yuan/MT Indian Bazaar: Custom Exchange Revision: With effect from 6 Jan 2023, the GoI has raised the customs exchange rate for imports to INR 83.70/USD( +0.15). Buying Pulse: Need based demand has ruled the EVA trading centres in India. Despite that, the spot prices were on the higher side due to shortages, arising due stockist not receiving import cargoes. According to a stockiest, imported cargoes are expected land in Indian ports by Jan end or first week of Feb 2023. Speaking with a few EVA processors, we elicited that they were encountering the challenge of low end-product off-takes. So, they curtailed their production volumes, hence EVA purchases. In Mumbai and Delhi bazaar, we assessed open bazaar prices of EVA 18 % to be in the range of Rs 190-191/Kg and Rs 178-179/Kg respectively (Excl. GST). Purchase Opinion: Taking clues from the current bazaar dynamics, we advise buying for immediate requirements only. |
| EVA : Weekly Report & Future Trend - 1st Wk, Jan'22: (Dt: 31/12/2022- Posting Cycle : Weekly, Saturday) |
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Feedstock offer
Ethylene CFR SEA: $ 925/Mt Vinyl Acetate : RMB 7800/Mt Indian Bazaar: Import Offers: For January, 2023 shipment.offers assessed higher at US$ 1850/Mt Buying pulse : Demand for EVA has been reported steady in Indian bazaar, but spot prices have been at higher rates amid pessimistic demand sentiment. As per input received from bazaar, EVA stockiest has encountered delay in receiving fresh import cargoes. Speaking with a few EVA processors, we elicited that they were encountering the challenge of low end-product off-takes. So, they curtailed their production volumes, hence EVA purchases. In Mumbai and Delhi bazaar, we assessed open bazaar prices of EVA 18 % to be in the range of Rs 188-190/Kg and Rs 185-186/Kg respectively (Excl. GST). Purchase Opinion:Given the ruling price governing factors, expected bazaar movement in the coming days, and the overall current scenario,buying is suggested at current levels. |