Why Is The _EVA Market So Tangled

- Oct 10, 2019-

EVA market watch: the oil price is up and down, the futures market is red and green, general motors market is also sideways consolidation trading is not free, the overall economic situation is not pessimistic. Look back at EVA market, high stalemate scene has lasted a long time, and the dollar in the end of last month quickly cut the deal after the end, it seems that there is no meaning to lower the price temporarily, but the domestic supply is clearly unlimited supply, why this week the factory price should be lowered? A lot of industry must be confused.


Let's first look at the current situation of EVA market.


1. With the sharp decline of the dollar price at the end of last month, the market shouted "drop", but half a month has passed, the market price seems not to be too loose, why can't it go down?


It is not difficult to see that the amount of resources in spot market is very scarce. First of all, after the installation of yangba was started at the beginning of last month, it was relatively slow to return to the normal consumption state. Secondly, due to the high dollar market price in the first half of the year, serious market inversion, traders have no profit margin to operate, downstream factories also fierce resistance, therefore, from the second quarter, the import volume rapidly reduced, weak demand is obvious. Again, about the hot melt adhesive for the market, colorful EVA installed last month beginning at the beginning of commissioning, but not to reach the track consumption from time to time, so far there is no product in the market circulation, but about the installation after the functioning of consumption ability, plus hard high upfront $price, therefore, traders can't optional flange, causing the hot melt adhesive market spot resources are scarce, and late last month at a low price clinch a deal the Formosa plastics sources now has just arrived, has yet to flow into the market. Simply put, the scarcity of physical resources is an important factor in the current market price performance is more "hard".


2, EVA dish consolidation behind, why do low-cost sources of goods from time to time?


Although the overall trend of EVA market is mainly consolidation, but the market low-end transaction situation is still heard from time to time, leading to this situation is the most important factor is the mentality of the industry. Crude oil, futures, general commodities, individual price, etc., the macro economic level positive factors are limited, there are a lot of bad news, EVA industry about the market waiting more pessimistic than pessimistic. Although the market price of money in the early stage was hard and high, with the sharp decline in the price of the last round of us dollar, many companies lost confidence in themselves. In order to avoid the risk in the later stage, they would release low price from time to time for shipment. The lower the price, the more disorderly the price, the lower the price, and the market spiraled down in such a "short circle".