Zhejiang Petrochemical, Lianhong Xinke, etc. have entered the photovoltaic-level EVA track one after another!

Recently, Rongsheng Petrochemical stated on the investor platform that Zhejiang Petrochemical's existing EVA plant adopts LyondellBasell's tubular process technology, which can produce 300,000 tons of photovoltaic materials per year, with VA content of 28%, product brand V6110S, The production is stable and the sales are normal, that is, the existing EVA unit can produce 100% photovoltaic material
.
At the same time, the company's approved second-phase adjustment plan for the project will carry out EVA expansion.
After the expansion, the total EVA production capacity will reach 700,000 tons/year, and the expansion device is planned to flexibly adopt the tubular method and the kettle method
.

Similarly, Lianhong Xinke is also increasing the industrial layout of photovoltaic-grade EVA.
It is reported that in the second quarter of 2022, the upgrade and expansion project of the EVA device's tubular tail technology was successfully completed and achieved the expected results.
The overall annual production capacity of the EVA device increased to 15 10,000 tons, the energy consumption per unit product has been reduced by about 25%, the net profit attributable to the parent has increased by 78 million yuan year-on-year, and the proportion of EVA photovoltaic film materials has increased to more than 80%
.

Photovoltaic EVA continues to boom, and the short-term gap is expected to be further enlarged

1.
Gold nine silver ten + factory overhaul, the gap will widen

On the news side, as the demand for gold, nine silver and ten is approaching, the price inflection point of EVA products is expected to come
.
Guosen Securities pointed out that the current price of domestic foam materials in East China is about 23,000 yuan / ton, the price of cable materials is about 26,000 yuan / ton, and the price of photovoltaic materials is about 29,000 yuan / ton.
RMB/ton or more
.
At present, the inventory of the industry chain is low, but the downstream is entering a relatively low season of demand, and the industry turning point is coming soon.
At the same time, some domestic manufacturers are overhauled in September and October, which is expected to enlarge the supply gap
.

2.
Photovoltaic EVA will maintain a tight balance in the short term

From the perspective of the EVA industry chain, its downstream demand is relatively wide, and photovoltaic films and foaming materials are the main ones
.
According to the data of the Prospective Industry Research Institute, in recent years, the demand for the downstream foaming market has become saturated, while the demand for photovoltaic materials has gradually increased
.

It is reported that photovoltaic EVA is photovoltaic film, which is an indispensable part of photovoltaic modules, accounting for about 8% of the cost of photovoltaic modules
.
Cinda Securities pointed out that from the perspective of new production capacity, the actual domestic consumption of photovoltaic-grade EVA in 2021 will reach 760,000 tons, but the production capacity of photovoltaic-grade EVA of major manufacturers such as Sierbang, Lianhong Xinke, and Ningbo Formosa Plastics will reach a maximum of 25 tons.
10,000 tons, the production capacity is still far below the demand
.
This means that the import dependence of photovoltaic grade EVA exceeds 60%
.
The newly added capacity is also faced with uncertainties in terms of production time and the inability of the VA content to meet the demand for photovoltaics
.
In terms of new overseas production capacity, there are fewer companies expanding production or new production, and the incremental production capacity is not obvious, and global supply and demand are still tight
.
Photovoltaic film accounts for a relatively low proportion of the cost of photovoltaic modules.
Under the circumstance of tight supply and demand, the price increase can be more acceptable to downstream enterprises.
It is expected that the price will continue to remain high in the next one or two years
.

At the same time, Debon Securities believes that even though a large number of EVAs in China are gradually put into production, with the continuous expansion of downstream demand, it is expected that the expanded production capacity of photovoltaic-grade EVA will not be released quickly, and the short-term industry will maintain a tight balance between supply and demand
.