EVA resin market demand is strong and the industry has huge room for development

EVA resin, also known as ethylene-vinyl acetate copolymer, has a chemical formula of (C2H4) EVA resin has the characteristics of impact resistance, high flexibility, good thermal insulation performance, heat resistance, corrosion resistance, etc., and is widely used in the fields of wires and cables, functional shed films, toys, foam shoe materials and other fields.

The high-pressure continuous bulk method is the mainstream production process of EVA resin. According to different reactors, it can be subdivided into two types: kettle method and tubular method. The kettle method uses an autoclave reactor with a stirrer, and the single-pass conversion rate is 10.0%~20.0%. It has the disadvantages of high production cost, difficulty in equipment installation and maintenance, etc. The tubular method uses a tubular reactor without a stirrer, with a single-pass conversion rate of 25.0% to 35.0%. It has the advantages of low production cost and high production efficiency, and accounts for 60.0% of the global market.

The main raw materials of EVA resin are ethylene and vinyl acetate (VA). Ethylene is one of the largest chemical products in the world. According to data from the National Bureau of Statistics, my country’s cumulative ethylene production reached 14.393 million tons from January to June 2022, a cumulative increase of 1.4%. Vinyl acetate occupies the main production cost of EVA resin, and its content and melt index play a key role in the performance of EVA resin. In recent years, my country’s vinyl acetate industry has been developing well, with my country’s vinyl acetate output reaching 1.826 million tons in 2021. Stable supply and demand in the raw material market has driven my country’s EVA resin output to continue to grow. According to the “2022-2027 EVA Resin Industry Market In-depth Research and Investment Prospects Forecast Analysis Report released by the Industrial Research Center, in 2021 In 2018, my country’s EVA resin output reached 1.012 million tons, a year-on-year increase of 27.6%.

The photovoltaic field has the largest demand for EVA resin, and most photovoltaic films use EVA resin as raw material. According to statistics from the National Energy Administration, my country’s photovoltaic installed capacity ranks first in the world in 2021, with installed photovoltaic power generation capacity reaching 310 million kilowatts, a year-on-year increase of 20.9%. Benefiting from the rapid development of the photovoltaic industry, my country’s EVA resin market demand has shown a substantial growth trend. However, at present, my country’s EVA resin production cannot meet market demand, and the market is experiencing tight supply.

In terms of market competition, the world’s leading EVA resin companies include BASF of Germany, Mitsui Chemicals of Japan, BASELL of LyondellBasell Industries of the Netherlands, DuPont of the United States, LG Chem of South Korea, etc. my country’s EVA resin industry is highly concentrated, with major companies including Jiangsu Sierbon, Sinopec and Ningxia Baofeng Energy.

Industry analysts said that EVA resin has the advantages of high flexibility, heat resistance, corrosion resistance, etc., and is in strong demand in the photovoltaic field. With the support of national policies, the prosperity of my country’s photovoltaic industry continues to improve, and market demand is increasingly strong, driving the rapid development of the EVA resin industry. However, at present, my country’s EVA resin market is undersupplied, and manufacturers urgently need to expand production capacity to meet downstream demand. Overall, EVA resin is widely used in my country, and there is huge room for development in the industry.