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            Development trend of EVA materials

            2015-10-21

            The production and application of EVA foam materials in China started late, but because of its excellent processing performance and wide application, the demand in recent years is growing rapidly, and the market is in a growing period. Despite the impact of the global financial crisis, the demand for downstream exports weakened, and the market still grew at a compound annual rate of more than 9% from 2006 to 2010. In 2010, the market size exceeded 18 billion yuan.

            The rapid growth of the market has attracted many manufacturers to enter the industry. In 2010, more than 3000 enterprises in the Chinese market had the ability to produce EVA foam materials. Most of the manufacturers of EVA foam materials are small enterprises with annual sales less than 10 million yuan. The number of large-scale manufacturers is small, with annual sales of more than 30 million yuan, up to 100 million yuan. The total sales volume of EVA foam materials of the top five enterprises in the market is close to 2 billion yuan, accounting for only 10% of the market share, with low concentration.

            Benefiting from the stable development of China's manufacturing industry, the improvement of requirements and profits brought by the upgrading of downstream industries, as well as the development of broader application fields and other favorable factors, China's EVA foam material market is expected to maintain a high-speed growth. From 2010, the annual compound growth rate will exceed 10%, and the market scale will reach 30 billion yuan by 2015.

            Raw materials mainly rely on imports

            The main raw material of EVA foam material is Eva. At present, the demand of EVA foaming materials for EVA accounts for more than 60% of the total consumption of EVA in China. The apparent consumption of EVA foam materials in China has been increasing year by year, which has stimulated the demand for EVA. In the past few years, the average annual growth of China's EVA demand has exceeded 7%. On the other hand, the dependence of market supply on imports is relatively high. In 2010, the global demand for EVA exceeded 3 million tons, and the domestic consumption of EVA reached 700000 tons, while the output was only 270000 tons, and the self-sufficiency rate was less than 40%.

            Due to the tight market supply and the rising cost of raw materials, energy and transportation, the import price of EVA rose all the way from 2006 to 2008, from 10800 yuan (ton price, the same below) to 13600 yuan. In 2009, due to the decline of international crude oil price, the production cost of EVA fell. On the other hand, the financial crisis has also led to a reduction in the global demand for EVA. These two factors caused the import price of EVA to drop to 10200 yuan in 2009. In 2010, with the gradual recovery of macro-economy, the downstream demand of EVA gradually picked up. At the same time, the international crude oil price rose, and the supply of EVA continued to be tight, resulting in the rapid rise of EVA price to 13500 yuan.


            The price of EVA foam material also fluctuates with the price of EVA. From 2006 to 2008, the price of EVA foam materials rose from 3150 yuan to 3600 yuan / m3. By 2009, with the fall of EVA price, the price of EVA foam material has also dropped to 3200 yuan / m3. In 2010, affected by the rapid growth of downstream demand and the sharp rise of EVA raw materials, the price of EVA foam materials rebounded back to 3500 yuan / m3.

            Strong growth in downstream demand

            The main industries of EVA foam materials, namely shoes, bags, toys, sporting goods and building materials, are the traditional strong industries of China's manufacturing industry. In 2010, the industry output value is more than or close to 100 billion yuan, of which the output value of building materials industry is even more than trillion yuan. Driven by the stimulation of domestic demand and further improvement of export market, these industries are expected to maintain more than 10% growth in the next three years.

            Footwear market and luggage market are the main downstream markets of EVA foam materials, which consumed about 70% of EVA foam materials in China in 2010. In 2010, about 25% EVA foam materials were consumed in the downstream markets of toy industry, sporting goods industry and building materials industry. Emerging areas, such as automotive interiors and electronic accessories and other downstream markets, consume about 5% of EVA foam materials in the Chinese market.

            Future development continues to be good

            The rapid growth of market scale will attract more enterprises, but the technical barriers, especially the requirements of EVA foaming materials for recycling and regeneration performance, as well as the barriers on scale and capital, will limit the access of small-scale enterprises with insufficient capacity. Although there is no product standard for EVA foaming material industry at present, the requirements for various products in the industry, especially the increasingly strict export standards, also form a strong constraint on EVA foaming materials. Therefore, manufacturers that meet various downstream standards will be in a more favorable position in the competition.

            From the upstream point of view, with the expansion of China's market demand for EVA foam materials, the future import volume of EVA will further increase. At the same time, with the technological breakthrough of domestic production enterprises, the dependence on imports will gradually reduce. Driven by the downstream demand, the market scale of EVA foaming materials in China will continue to increase. At the same time, it is expected that large-scale EVA foam material manufacturers will further occupy the market, and some industries will be integrated through mergers and acquisitions. From the downstream, on the one hand, the existing demand for the next industry will continue to be strong, and with the upgrading of the next industry, the requirements for the quality and characteristics of EVA foam materials will also be improved, while also bringing higher profits. On the other hand, more new applications will be developed.



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