China’s EVA Resin Market

By Li Yufang, Wu Xiaoming, Beijing Jiangning Chemical Technology Research Institute

Production

Beijing Dongfang Petrochemical Co., Ltd. (formerly, Beijing Organic Chemical Plant) was first to produce EVA (ethylene-vinyl acetate copolymer) resin in China. The company’s 40 kt/a EVA unit, incorporating technology from Eni of Italy, was put into operation in February 1995.
The 200 kt/a EVA/LDPE (low density polyethylene) combined unit of BASF-YPC Co., Ltd., a joint venture between BASF and Sinopec Yangzi Petrochemical Co., Ltd., was completed and put into production in 2005. The unit uses a high-pressure tubular process from Basell, and can produce either LDPE or EVA resin.
The 60 kt/a EVA resin unit of Beijing Huamei Polymer Company, a joint venture of DuPont and Sinopec Group, was put into operation in 2010. The unit uses the kettle process from DuPont, and EVA produced by this JV carries DuPont’s Elvax brand.  
In 2011, Sinopec Beijing Yanshan Petrochemical Co., Ltd. conducted a transformation of its original high-pressure unit. The present unit, with a capacity of 200 kt/a, can produce either LDPE or EVA resin.
As of December 2014, China had four EVA resin producers, with a combined capacity of 500 kt/a. Among the domestic EVA resin producers, only the unit in the Organic Chemical Plant of Beijing Dongfang Petrochemical Co., Ltd. produces EVA resins exclusively; other units are sometimes switched over to producing LDPE. In the case of a more vigorous LDPE market, the units cannot make full-load production of EVA resins, resulting in lower operating rates and affecting the further development of EVA resin applications to a large extent.
Shenzhen Fund Holdings Group Co., Ltd. and Shandong Haoda Chemical Co., Ltd. plan to construct new EVA or LDPE/EVA units. If these projects are all executed according to plan, it is expected that China’s total capacity to make EVA resin will exceed 1.8 million t/a by 2018 (note: The total capacity of LDPE/EVA switchable units is included). China’s EVA resin units being built or expanded during 2014-2017 are listed in Table 1.

Table 1   China’s EVA resin units being built or expanded, 2014-2017  (kt/a)  

Producer    Location    Capacity         Startup time    Production process
Shenzhen Fund Holdings Group Co., Ltd.    Songyuan, Jilin    200    2015    Using  methanol-to-olefin as raw material
Shandong Haoda Chemical Co., Ltd.    Tengzhou, Shandong    100    2015    Tubular process?
Formosa Plastic Group    Ningbo, Zhejiang    72    2014    Kettle process?
Shenhua Group    Yulin, Shaanxi    300    2017    LDPE/EVA combined unit
Shenghong Group    Lianyungang, Jiangsu    350    2016    200 kt/a capacity uses kettle process, 150 kt/a capacity uses tubular process
Shanghai Coking and Chemical Corporation    Wuhu, Anhui    200    -    Tubular process, LDPE/EVA combined unit
Sinopec Shanghai Petrochemical Co., Ltd.    Shanghai    100    -    Tubular process
Sino-Kuwaiti Zhanjiang JV?    Zhanjiang, Guangdong
    200    2016    Joint venture of Sinopec and Kuwaiti Petroleum Corporation, LDPE/EVA combined unit


Table 2   China’s import and export of EVA resin, 2005-2013  (kt)

Year    Import volume     Export volume
2005     393.9    8.0
2006     368.5    15.8
2007     427.4    24.1
2008     363.6    34.5
2009     505.6    39.3
2010     479.0    46.0
2011     500.8    48.7
2012     607.5    53.6
2013     526.6    52.0


Table 3   China’s sources of imported EVA resin, 2011-2014  (kt)

Import source    2011     2012     2013     Jan.-Oct. 2014
Taiwan province    179.5    182.4    173.1    145.6
South Korea    94.5    123.1    112.2    215.0
Singapore    48.4    61.6    61.2    56.0
Japan    51.8    63.0    49.5    40.8
The United States    40.7    31.3    30.8    30.6
Thailand    34.3    62.7    46.0    54.4
Canada    20.1    33.6    24.7    15.0
Belgium    6.8    4.6    3.9    7.6
Brazil    10.3    27.9    7.8    0.7
France    6.6    7.8    9.5    4.0
Germany    2.8    5.5    2.3    1.9
Vietnam    1.0    1.3    2.9    0.7
Spain    1.3    0.5    0.7    0.8
Italy    0.7    0.9    0.7    0.5
Others    2.0    1.3    1.3    1.7
Total    500.8    607.5    526.6    575.3




Import and export

As China’s EVA resin output cannot meet the demand, great quantities have to be imported each year. China imported 607.5 kt in 2012, and 526.6 kt in 2013, down around 15.36% YoY. In the first ten months of 2014, the import volume reached 575.3 kt, up around 33.17% YoY. China exported 8 kt of EVA resin in 2005, climbing to 53.6 kt in 2012, a YoY growth of around 10.06%, and 52 kt in 2013, down around 2.98% YoY. In the first ten months of 2014, the export volume was 37.3 kt, down around 15.42% YoY. China’s imports and exports of EVA resin during 2005-2013 are shown in Table 2.
China’s major sources of imported EVA resin are Taiwan province and South Korea. In 2013, imports from the two regions totaled 285.3 kt, down around 6.61% YoY and accounting for around 54.18% of the total import volume. In 2014, imports from the two regions totaled 360.6 kt, up around 56.17% YoY and accounting for around 62.68% of the total. China’s sources of imported EVA resin during 2011-2014 are listed in Table 3.

Consumption

China’s demand for EVA resin has increased constantly, due to its excellent performance. The average annual growth of demand was around 6.82% during 2008-2013. China’s output of EVA resin has also climbed continually; year-on-year growth was 14.45%, 36.90% and 37.50% in 2005, 2011 and 2013, respectively. China’s supply and demand for EVA resin during 2005-2013 are shown in Table 4.
Manufacturers of injection-molded and foam products are the biggest consumers of EVA resin in China, accounting for around 65% of the total. Consumption in making films comes next and accounts for around 17% of the total. Beyond that, around 7% goes into hot-melt adhesives and around 3% into electric wires/cables, leaving around 8% for other purposes.
The most important application of EVA resin in films is its use in functional greenhouse films for agriculture. Some EVA resin is also used in packaging films, medical films, laminating films and casting films. The domestic products used in this sector are mainly products of Organic Chemical Plant of Beijing Dongfang Petrochemical Co., Ltd., and major product brands are 5/0.3, 5/2, 14/0.7 and 14/2, as well as 4110F of BASF-YPC Co., Ltd. The imported products are mainly 630 and 630F of Toyo of Japan, H2020 and H2021B of Sumitomo of Japan, 630 and 631 of a company in the United States, EF443 and EF321 of Korean LG Chemical and 2050 of Korean Hanwha, etc.
With the accelerated replacement of conventional greenhouse films by functional varieties, the demand for EVA resin in making agricultural films will increase drastically. Agricultural films will become the most important driver for the growth of EVA resin demand in China. In addition, solar module encapsulating films will also be an important application.
However, China depends heavily on importing high-performance EVA encapsulating films. At present, the imported solar cell encapsulating film special materials are mainly Elvax150 of DuPont of the United States, 150 of Mitsui Chemicals of Japan, 1533 of Korean Hanwha, VE810 of Korean Honam Petrochemical, UE654-04 of USI Corporation, TV2060 of TPI of Thailand and MA-10 and MH-20 of TPC of Singapore.
It is expected that the proportion of EVA resin consumed in making films will climb from around 17% today to around 20% in the next few years, and the demand for EVA resin in this field will reach around 230 kt by 2018.  
Foam plastics produced using EVA resin as a major raw material can be used in the industrial, construction and aquatic product sectors. At present, the domestic products used in this sector are mainly V5110J of BASF-YPC Co., Ltd., 18J3 of Sinopec Beijing Yanshan Petrochemical Co., Ltd. and 18/3 and 14/2 of the Organic Chemical Plant of Beijing Dongfang Petrochemical Co., Ltd. The main imported products are 630, 630F and 631 of Toyo of Japan, K706N and Pl450 of Mitsui Chemicals of Japan, H1011 and H2020 of Sumitomo of Japan, 460, 560 and 565 of DuPont of the United States, 630 and 631 of company from the United States, 440, 450 and 550 of Korean Hyundai, 180F of Korean Samsung, H2020, H2071 and H2182 of TPC of Singapore, 7350M of Formosa Plastic Group, UE629 of USI Corporation and 8038 of TPI of Thailand. With increased volumes of shoe materials and toys exported to international markets, it is expected that the demand for EVA resin in China’s foam plastics sector will reach around 660 kt by 2018.
The main EVA resin brands used in electric wires/cables sector are 6110M of BASF-YPC Co., Ltd. and 14/2 of Organic Chemical Plant of Beijing Dongfang Petrochemical Co., Ltd., etc. The imported products are mainly 260 of Mitsui Chemicals of Japan, 7470M of Formosa Plastic Group, 1326 and 1828 of Korean Hanwha, 450 of Korean Hyundai, MV1055 of TPI of Thailand, KA-31 of TPC of Singapore and VA600 of Korean Honam Petrochemical. The demand for EVA resin in the manufacture of electric wires/cables will develop rapidly and reach around 40 kt by 2018.

Table 4  China’s supply and demand for EVA resin, 2005-2013   (kt)

Year    Output     Import     Export     Apparent consumption     Self-sufficiency rate (%)
2005     65.2    393.9    8.0    451.1    14.45
2006     184.5    368.5    15.8    537.2    34.34
2007     216.1    427.4    24.1    619.4    34.89
2008     216.9    363.6    34.5    546.0    39.72
2009     238.0    505.6    39.3    704.3    33.79
2010     227.2    479.0    46.0    660.2    34.41
2011     264.4    500.8    48.7    716.5    36.90
2012     312.2    607.5    53.6    866.1    36.05
2013     284.8    526.6    52.0    759.4    37.50


Hot-melt adhesives with EVA resin as the main component are used extensively in the wireless binding and packaging of books, the sealing of paper boxes, the banding of furniture, the assembly of automobiles and household electric appliances, the making of shoes, the coatings of carpets and the anticorrosive coatings of metal products. The main domestic products used in domestic hot-melt adhesive sector are 28/400 and 18/150 of Organic Chemical Plant of Beijing Dongfang Petrochemical Co., Ltd., etc. The main imported products are 250, 260, 410 and 420 of Mitsui Chemicals of Japan, KA10, KA31 and KC10 of Sumitomo of Japan, 900, 910, 920 and 930 of Korean Hyundai, 210, 220 and 250 of DuPont of the United States, 900, 810 and 910 of Korean Honam Petrochemical, and 1528, 1529 and 1519 of Korean Hanwha. It is expected that domestic demand for EVA resin in making hot-melt adhesives will reach around 90 kt by 2018.
In other sectors, EVA resin can be used as an additive of oil products, an anti-wax agent, a flow modifier of crude oil, a low-temperature flow modifier of diesel, etc. It is expected that the demand for EVA resin in other sectors will reach around 80 kt by 2018.
The total demand for EVA resin in China is therefore expected to reach around 1.10 million tons by 2018. The consumption structure will have changed by then. The proportion of EVA resin used in making foam products will be down from around 65.0% today to around 61.7%. The proportion used in film manufacture will, however, increase to around 21.0%. The demand from manufacturers of hot-melt adhesives, electric wires/cables and other sectors will grow steadily.