Serious shortage of EVA resin for agricultural film

In an interview with reporters, Liu Hongjian, the Director of Mining and Supply at Tianjin No. 2 Plastics Factory, expressed his regret over not purchasing more than 2,000 tons of EVA (ethylene-vinyl acetate copolymer) resin earlier when the price was over 14,000 yuan per ton. He noted that the price has since surged to nearly 17,000 yuan, and supply shortages have made it increasingly difficult to obtain the material, even with sufficient funds. This situation highlights a long-standing challenge in China’s domestic EVA resin production for agricultural films. Despite the completion of a 200,000-ton-per-year EVA plant by Yangzi Petrochemical-BASF Co., Ltd., the country still faces a significant gap between supply and demand. Agricultural film production requires EVA with a vinyl acetate (VA) content of no more than 40%, typically around 14%. However, only a few companies, such as Yang-Pak Corporation and Beijing Dongfang Petrochemical Company, have the capacity to produce this specific grade. Last year, less than 10,000 tons of EVA were used for agricultural films, with Yangzhou-Baba producing just 8,000 tons of V4110F and Beijing Dongfang ceasing production entirely this year. The high demand, combined with limited supply, has driven up prices. Ex-factory prices for EVA grades like V4110J, V5110J, and EVA18-3 have reached 17,000 yuan. The reason behind the low domestic output lies in both technical challenges and market dynamics. Producing EVA for agricultural films requires precise control of VA content and melt index, making it technically demanding and costlier compared to other EVA applications. Many companies prefer to focus on more profitable products, such as foaming materials, which currently command a 500-yuan premium over film-grade EVA. China's overall EVA consumption has grown rapidly, from 31,900 tons in 1993 to 550,000 tons in 2006, with an annual increase of over 20%. By 2007, demand is expected to exceed 570,000 tons, widening the supply gap. Global EVA supply has also tightened due to limited VA availability, leading to higher international prices—rising from $1,500 to over $1,900 per ton. Additionally, South Asian markets like India and Pakistan have increased their demand, prompting some exporters to shift supplies away from China, further exacerbating the shortage. Technological constraints and market preferences continue to hinder the development of EVA for agricultural films. Most producers avoid this niche due to the complexity of meeting strict specifications, while others opt for more profitable alternatives. Even though EVA is critical for high-grade agricultural films, its usage remains limited due to high costs and farmers’ affordability issues. Currently, EVA is mainly used in premium or multi-layer films, with only a few companies incorporating it at levels above 70%. With the growing demand for high-quality agricultural films and the projected need for over 250,000 tons of EVA annually in the next decade, China faces a long-term challenge in securing a stable supply. Without accelerated domestic production, the agricultural film industry will likely continue to struggle with EVA shortages for years to come.

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