The downstream demand is strong, the price of this new material is rising rapidly, and the market outlook is expected to remain strong

Since the beginning of this year, the photovoltaic industry has ushered in a strong rebound.
According to statistics from the National Energy Administration, as of the end of March, the installed capacity of solar power generation nationwide was about 320 million kilowatts, a year-on-year increase of 22.
9%; A year-on-year surge of 148%
.
In photovoltaic modules, EVA film is used between the tempered glass plate and the solar cell to encapsulate and protect the cell
.
At present, photovoltaic film accounts for about 40% of the downstream application of EVA resin in China, which is the largest downstream application of EVA resin
.

It can be said that, driven by the continuous growth of photovoltaic installed capacity, the EVA resin market, which is the core material of photovoltaic film, continues to rise, and the product supply is in short supply
.

At present, the domestic supply of EVA is still dominated by imports, of which imports of photovoltaic grade EVA account for more than 60%, while only a few domestic companies such as Lianhong Xinke, Dongfang Shenghong, and Rongsheng Petrochemical can produce photovoltaic grade EVA.
resin
.

Among them, Longyi Dongfang Shenghong accounted for more than 50% of domestic supply; Longerlian Hongxin Branch carried out technical transformation in 22Q1, and its production capacity was increased to 139,000 tons/year
.
However, also due to technological transformation, the supply of Lianhong Xinke in Q1 has declined
.

In terms of imports, according to customs data, China imported about 258,500 tons of EVA in Q1, a year-on-year decrease of 19.
37%
.
At the same time, affected by the overseas situation and port logistics, the order cycle has been significantly delayed year-on-year, and it currently takes more than 2 months
.
The superposition of supply problems at home and abroad has led to the continuation of the tight supply and demand of domestic EVA pellets
.

The most direct impact of the imbalance between supply and demand is that the price of EVA has been rising since the beginning of the year.
According to the latest price curve of the business agency, the price of EVA has risen by as much as 35% in the past three months
.

According to China Industry News, since May, EVA has still maintained its kingly style in the rubber and plastics market, and its price has skyrocketed
.
On May 5, the auction price of Sinochem Quanzhou EVA once again exceeded 30,000 yuan/ton
.
On May 6, the EVA market in South China rose explosively, with multiple brands increasing by as much as 1,000 yuan/ton in a single day
.
In the East China market, EVA/Singapore TPC/KA31 hit a single-day increase of 3,000 yuan/ton
.

According to statistics, in the list of commodity prices in April, there were 5 kinds of commodities in the rubber and plastics sector that increased month-on-month.
Among them, the only commodity that increased by more than 5% was EVA, which increased by 10.
67%, accounting for 4.
5% of the monitored commodities in this sector.

.
Since May, EVA has maintained a strong upward trend
.

It is worth mentioning that EVA, as an important auxiliary material of photovoltaic modules, accounts for about 12% of the cost of photovoltaic modules
.
In response to the shortage of supply in the market, EVA production capacity is gradually increasing
.
However, it should be noted that due to the long project construction period and high operational technical barriers, the growth rate of EVA, especially photovoltaic materials, is still difficult to meet the market demand
.

When interacting with investors, Lianhong Xinke also mentioned that the production capacity has been increased after the completion of the renovation of the device.
At present, each device is running at full capacity, with full orders and full production and full sales
.

According to industry insiders, the photovoltaic field supports the market demand for EVA.
At present, the overall operating rate of domestic EVA is at a high level of about 90%, and the production of photovoltaic materials is mainly used, but the product supply is still in short supply
.
In the absence of a major improvement in the supply of imported materials, it is expected that the market supply of EVA will remain tight in the follow-up, and the price of products will easily rise and fall
.

In addition, the relevant person in charge of Rongsheng Petrochemical also expressed a similar view to the reporter.
The person believes that the current domestic and foreign photovoltaic demand is growing rapidly at the same time, and it is expected that this year's EVA market will continue to be in short supply
.