EVA - a modified Polyethylene
or more a copolymer of Ethylene with Vinyl Acetate
offers great flexibility or impact strength
and weatherability compared to both PE and PVC.
EVA has a smaller market compared to both PE
and PVC but is needed for niche applications.
With markets in the Asian region
growing due to an increase in the standard of
living as well as GDP growth, demand of EVA
is also growing pretty well. Some market researchers
estimate the growth of Asian region as high
as 15% in the foreseeable future. China, with
its huge usage of plastic in the field of agriculture,
has tremendous market potential for EVA films
in agriculture. Some independent market researchers
estimate the present market at about half a
million tons in 2005, expected to cross over
750,000 MT by 2010. Injection moulded and foam
products are the largest consumer of EVA resin,
accounting for 65% of China's total consumption;
followed by films, accounting for 16% of the
total consumption; and hot-melt adhesive comes
out third, accounting for 7% of the total consumption.
India has also seen significant growth of EVA
in the last 2-3 years. It is estimated that
EVA demand in 2005 could be as high as 50,000
MT. It is growing at 15% and may reach 100,000
MT. Unlike China, injection moulded footwear
has more than 85% share. There is practically
no demand of EVA film for agriculture. Some
EVA is used in PE cable to achieve improved
stress crack resistance.
However the demand could be
adversely affected because of tight supply.
China has a short supply of more than 300KT
in 2005. While additional capacity of 100KT
is being built, demand is growing at a faster
pace. China therefore requires further capacity
expansions/additions. India has only one old
plant of 15KT capacity compared to the present
demand of 50KT. There are no plans to develop
another plant. The present supplier (Reliance
Industries) cannot expand the existing plant
because it is a very old plant.
Overall the supply of EVA worldwide
is short. Hence the growth of EVA could be adversely
affected if no new capacities are built. Newer
capacities are unlikely to be built as readily,
because of safety issues caused by the high