Serious shortage of EVA resin for agricultural film

In a recent interview, Liu Hongjian, the Minister of Mining and Supply at Tianjin No. 2 Plastics Factory, shared his experience about the EVA resin market: “If we hadn’t purchased more than 2,000 tons of EVA resin at over 14,000 yuan per ton in the past, we would be in a tough spot now. The price has soared to nearly 17,000 yuan, and supply is extremely tight—sometimes even money can't guarantee availability.” This statement highlights the severe shortage and rising costs that have plagued the domestic EVA resin industry for years. Despite the completion of the 200,000-ton-per-year EVA plant by Yangzi Petrochemical-BASF Co., Ltd., the problem of insufficient production for agricultural films hasn’t been resolved. The production of agricultural films requires EVA with a vinyl acetate (VA) content below 40%, typically around 14%. However, only a few companies, such as Yang-Pak Corporation and Beijing Dongfang Petrochemical Company, have limited capacity. Last year, less than 10,000 tons of EVA was used for agricultural films, and in 2006, the production of V4110F, a key material for EVA membranes, reached only 8,000 tons. The reason behind the high prices and low output lies in both supply constraints and lower profitability. Domestic EVA production has long been inadequate, and while demand has surged, especially in sectors like agriculture, the gap between supply and demand continues to widen. In 2007, EVA consumption is expected to surpass 570,000 tons, further intensifying the pressure on the market. Globally, the situation is no better. Tight VA supplies have forced some large EVA producers to cut back or halt operations, leading to higher international prices. At the same time, growing demand in South Asian countries like India and Pakistan has diverted exports away from China, exacerbating the local shortage. Additionally, technical challenges make it difficult for many companies to produce EVA suitable for agricultural films. While EVA with VA content below 40% is theoretically usable, most manufacturers opt for products with VA levels between 9% and 18%. Producing materials with precise specifications, like EVA14-2, is technically demanding and costly, leading some companies to stop production altogether. Market factors also play a role. Agricultural film companies often offer low prices, making it less attractive for producers to focus on this sector. As a result, many prefer to produce foaming materials, which are more profitable. EVA is essential for high-grade agricultural films, and its demand is growing rapidly. While foreign films often use over 50% EVA, Chinese farmers still face affordability issues due to high prices. Currently, EVA is mainly used in premium or multi-layered films, with usage rates ranging from 10% to 40%. Looking ahead, the demand for EVA in agriculture is expected to grow significantly. Over the next 5–10 years, China may require more than 250,000 tons of EVA annually for agricultural films. If domestic production fails to keep up, the industry could face prolonged shortages.

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