October's market downturn led to a 25,500 mt decrease in scheduled PV-grade EVA production

Weakened October demand led to a 25,500 mt drop from the initial 114,000 mt at the beginning of the month in scheduled PV-grade EVA production, with just six factories still producing. Many companies shifted to EVA foam production, including Sailboat, Zhejiang Petroleum & Chemical, China Coal Shaanxi Yulin Energy Chemical, and Tianli Gaoxin Petrochemical. Due to price inversion, factories adjusted production plans and sales strategies, with even Zhejiang Petroleum & Chemical, which had been firmly committed to the photovoltaic production line, was expected to switch to foam cable-grade EVA production to mitigate market risks.

October saw about 20,000 mt of PV-grade EVA traded domestically, with no imported granules. Petrochemical factories were mainly clearing September inventory, leading to a weak market with inquiries but few orders. This was due to a 17% order reduction from PV film factories, who held high-priced inventories and halted raw material procurement to avoid further EVA price drops. With domestic EVA's flexible pricing and settlement, sporadic orders involved only domestic EVA.

October saw PV-grade EVA granules prices drop 17.85% from 14,000 yuan/mt to 11,500 yuan/mt, with a strong bearish market sentiment. Downstream mainly sought bottom pricing, focusing on EVA cost. Factories like Sailboat and Zhejiang Petroleum & Chemical are expected to set October's final settlement prices below 12,000 yuan/mt. November's imported granules prices are predicted to match October's domestic transaction prices at around 11,200-11,500 yuan/mt, with November's bearish sentiment continuing.

October ended bleakly for the PV-grade EVA market. According to SMM research, PV module's production is expected to further reduce in November. However, as PV-grade EVA and PV film prices near rock-bottom, downstream PV film procurement demand is stimulated. Order situation for PV film has improved recently, but exact order volume depends on this week's industrial chain production plan.