SMM comments: Is the PV-grade EVA granule market about to be in surplus? 

As the global demand for renewable energy grows, the photovoltaic industry, as an important part of it, has attracted much attention for its development prospects. EVA granules, as the main raw material for photovoltaic films, their market supply and demand situation directly affects the stability and development of the photovoltaic industry chain. At present, the total production capacity of domestic EVA granules is about 2.748 million tons. The output of domestic photovoltaic-grade EVA granules in 2023 was about 1.2 million tons. Is there a surplus in the current PV-grade EVA granule market?

First of all, we need to realize that the supply and demand relationship in the PV-grade EVA granule market is affected by many factors.

From the demand perspective, with the expansion of global photovoltaic installed capacity since March and the increase in module production, the demand for EVA granules has also continued to grow.

From the supply perspective, the new production capacity has brought about an increase in the supply of EVA in the market. Although a large number of maintenances are concentrated, it will not have a serious impact on actual production. It is expected that production schedules will increase further in April.

From January to March, the supply and demand situation in the PV-grade EVA granule market appeared to be oversupply. However, the price of PV-grade EVA granules continues to rise, which means that the photovoltaic grade EVA market is essentially in a state where demand exceeds supply. The reasons behind the price increase include the positive expectations for films and modules.

Although some new capacity is being gradually released, considering the rapid development of the photovoltaic industry and the constraints of EVA granule production, these new capacities will not immediately lead to market excess. In addition, with the continuous advancement of photovoltaic technology and the expansion of application fields, the demand for EVA granules will further expand.

Of course, we cannot ignore the risks that may arise from market changes. The supply and demand situation of the PV-grade EVA granule market in the future will be affected by a variety of factors, including policy adjustments, technological progress, market competition, etc. Therefore, relevant companies and investors need to pay close attention to market trends and rationally plan production capacity layout to ensure market stability and sustainable development.