Since the beginning of Februaury, the market price for EVA in India have been very volatile, while the demand for the polymer remains steady in the Mumbai and New Delhi markets. As of last week, RIL hiked its list price for the polymer by Rs. 2 per kg. The website spoke to some traders on this matter and surveyed the market sentiment for the polymer amongst traders across the country.
EVA is primarily produced from Ethylene and Vinyl Acetate, as such its imperative that the price movement of these petrochemicals are analysed in the Asian markets.
Lately, Ethylene prices in the Asian markets have been bullish due to supply shortage caused by current and forthcoming cracker turnarounds. In addition to this, the price hike for Ethylene is being supported by rising upstream energy cost in the region, whereby Naphtha prices have gained considerable weight since the beginning of February (Read full story: "Price of Ethylene- based polymer to remain high in India on continuance of feedstock supply tightness").
Latest story by an international publication indicated that price rise for Naphtha is being supported by recent price hike in crude oil, which is due to geopolitical tensions in Ukraine (Read news clip : Rising Naptha price prose concerns over polymer price trajectory in Asia).
Also, benchmark price for VAM (Vinyl Acetate Monomer) in Asia have increased recently, due to turnarounds in the US, Middle East and European markets; this, has resulted in considerable supply shortage in the western markets (Read full story: International price movement lifts Indian VAM price to all time high; future outlook uncertain).
Considering the current market situation for the feedstocks of EVA, it can be said that the hike in price for imported EVA is to some extent being supported by the rising feedstock prices.
Additionally, it is believed that Reliance Industries increased the price of the polymer by Rs. 2 per kg , with effect from the beginning of this month, based on these intentional market cues.
On these grounds, Indianpetrochem spoke to a Delhi based trader who said, "The demand for the polymer is stable in the Delhi market and is expected to gain further momentum during the summer months".
He added that there was limited availability of Reliance stocks in Delhi market and foreign companies have greater market share for EVA in India. As such list price increase by Reliance is expected to have minimal impact on the domestic market price for the polymer.
Presently in Delhi the market price of EVA from Reliance hasn't changed a bit since last week's closing of Rs. 152- 153 per kg.
Along these lines, a Mumbai based trader observed a similar market trend for the polymer, whereby the trader cited limited availability of Reliance goods in the market amid stable demand situation.
In Mumbai market the current price for EVA from Reliance is at Rs. 154-155 per kg, which is similar to the price at the end of last month.
In line with this observation, the website spoke to an official from a foreign company, which has significant market share for the polymer in India, and understood that the ongoing price rise for EVA in India is being supported by steady demand from end-consumers.
However, the company official went on to add that the imported price for EVA might come down in the near future as companies like Sipchem and Samsung try to capture greater market share in the Indian market; this, consequentially will lead to a price correction in the coming months, irrespective of the favorable market conditions.
The official went on to add that the demand for EVA will continue to remain steady in the coming months despite the price movements.
By Ntasha Berry
ntasha.berry@indianpetro.com
EVA is primarily produced from Ethylene and Vinyl Acetate, as such its imperative that the price movement of these petrochemicals are analysed in the Asian markets.
Lately, Ethylene prices in the Asian markets have been bullish due to supply shortage caused by current and forthcoming cracker turnarounds. In addition to this, the price hike for Ethylene is being supported by rising upstream energy cost in the region, whereby Naphtha prices have gained considerable weight since the beginning of February (Read full story: "Price of Ethylene- based polymer to remain high in India on continuance of feedstock supply tightness").
Latest story by an international publication indicated that price rise for Naphtha is being supported by recent price hike in crude oil, which is due to geopolitical tensions in Ukraine (Read news clip : Rising Naptha price prose concerns over polymer price trajectory in Asia).
Also, benchmark price for VAM (Vinyl Acetate Monomer) in Asia have increased recently, due to turnarounds in the US, Middle East and European markets; this, has resulted in considerable supply shortage in the western markets (Read full story: International price movement lifts Indian VAM price to all time high; future outlook uncertain).
Considering the current market situation for the feedstocks of EVA, it can be said that the hike in price for imported EVA is to some extent being supported by the rising feedstock prices.
Additionally, it is believed that Reliance Industries increased the price of the polymer by Rs. 2 per kg , with effect from the beginning of this month, based on these intentional market cues.
On these grounds, Indianpetrochem spoke to a Delhi based trader who said, "The demand for the polymer is stable in the Delhi market and is expected to gain further momentum during the summer months".
He added that there was limited availability of Reliance stocks in Delhi market and foreign companies have greater market share for EVA in India. As such list price increase by Reliance is expected to have minimal impact on the domestic market price for the polymer.
Presently in Delhi the market price of EVA from Reliance hasn't changed a bit since last week's closing of Rs. 152- 153 per kg.
Along these lines, a Mumbai based trader observed a similar market trend for the polymer, whereby the trader cited limited availability of Reliance goods in the market amid stable demand situation.
In Mumbai market the current price for EVA from Reliance is at Rs. 154-155 per kg, which is similar to the price at the end of last month.
In line with this observation, the website spoke to an official from a foreign company, which has significant market share for the polymer in India, and understood that the ongoing price rise for EVA in India is being supported by steady demand from end-consumers.
However, the company official went on to add that the imported price for EVA might come down in the near future as companies like Sipchem and Samsung try to capture greater market share in the Indian market; this, consequentially will lead to a price correction in the coming months, irrespective of the favorable market conditions.
The official went on to add that the demand for EVA will continue to remain steady in the coming months despite the price movements.
By Ntasha Berry
ntasha.berry@indianpetro.com
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