The development trend of Moyuan EVA processing materials

    The production and application of EVA processed foam materials in China started relatively late, but due to the excellent processing performance and wide application of the products, the demand has grown rapidly in recent years, and the market is currently in a growth stage. Despite the impact of the global financial crisis, downstream export demand has weakened, the market's compound annual growth rate from 2006 to 2010 still exceeded 9%, and the market size in 2010 exceeded 18 billion yuan.

    The rapid growth of the market has attracted many manufacturers to enter the industry. In 2010, there were more than 3,000 companies in the Chinese market capable of producing EVA foam materials. Most EVA foam material manufacturers are small enterprises with annual sales of less than 10 million yuan. The number of large-scale manufacturers is small, and their annual sales are more than 30 million yuan, and the high is up to 100 million yuan. The total sales of EVA foam materials by the top 5 companies in the market are close to 2 billion yuan, accounting for only 10% of the market share, and the concentration is not high.

    Benefiting from the stable development of China's manufacturing industry, the improvement of requirements and profits brought about by the upgrading of downstream industries, and the development of broader application areas, China's EVA foam material market is expected to maintain rapid growth. Starting in 2010, the compound annual growth rate will exceed 10%, and the market size will reach 30 billion yuan by 2015. EVA manufacturer

    Raw materials mainly rely on imports

    The main raw material of EVA foam material is EVA. At present, the demand for EVA by EVA foam materials accounts for more than 60% of the total domestic EVA consumption. As China's apparent consumption of EVA foam materials has increased year by year, which has stimulated the demand for EVA, in the past few years, the average annual growth of China's EVA demand has exceeded 7%. On the other hand, market supply is highly dependent on imports. In 2010, global EVA demand exceeded 3 million tons, and domestic EVA consumption reached 700,000 tons, while output was only 270,000 tons, and the self-sufficiency rate was less than 40%.

    Due to tight market supply, rising raw material, energy and transportation costs, the import price of EVA rose from 2006 to 2008, from 10,800 yuan (ton price, the same below) to 13,600 yuan. In 2009, due to the drop in international crude oil prices, the production cost of EVA fell. On the other hand, the financial crisis has also reduced the demand for EVA from the global industry. These two factors caused the import price of EVA to drop to 10,200 yuan in 2009. In 2010, with the gradual recovery of the macro-economy, downstream demand for EVA gradually recovered. At the same time, the international crude oil price rose and the supply of EVA continued to be tight, causing the price of EVA to quickly rebound to 13,500 yuan.

    The price of EVA foam material also fluctuates with the price of EVA. From 2006 to 2008, the price of EVA foam material rose from 3,150 yuan to 3,600 yuan per cubic meter. By 2009, along with the fall in EVA prices, the price of EVA foam materials had dropped to 3,200 yuan/cubic meter. In 2010, affected by the rapid growth of downstream demand and the sharp rise of EVA raw materials, the price of EVA foam materials quickly rebounded back to 3,500 yuan/cubic meter.

    Strong downstream demand growth

    The main industries of EVA foam materials, namely shoe industry, luggage industry, toy industry, sporting goods industry, and building materials industry, are all traditionally strong industries in China's manufacturing industry. In 2010, the industry output value exceeded or approached 100 billion yuan, of which building materials The output value of the industry has even reached more than one trillion yuan. Driven by stimulating domestic demand and further improvement in the export market, these industries are expected to maintain growth of more than 10% in the next three years.

    The footwear market and the luggage industry market are the main downstream markets for EVA foam materials. In 2010, about 70% of the EVA foam materials in the Chinese market were consumed. The downstream market of EVA foam materials such as toy industry, sporting goods industry, and building materials industry consumed about 25% of EVA foam materials in the Chinese market in 2010. Emerging areas, such as downstream markets such as automotive interiors and electronic accessories, consume about 5% of EVA foam materials in the Chinese market.

    Future development continues to improve

    The rapid growth of the market will attract more companies, but technical barriers, especially the requirements of EVA foam materials for recycling and recycling performance, as well as scale and financial barriers, will restrict the entry of small-scale and insufficient companies. Although there is no product standard for the EVA foam material industry, the requirements of the industry for various products, especially the increasingly stringent export standards, have also formed a strong constraint on EVA foam materials. Therefore, manufacturers that meet various downstream standards will be in a more advantageous position in the competition.

    From the upstream perspective, with the expansion of the Chinese market's demand for EVA foam materials, EVA imports will further increase in the future. At the same time, with the technological breakthroughs of domestic production enterprises, the dependence on imports will gradually decrease. Driven by downstream demand, China's EVA foam material market will continue to grow. At the same time, it is expected that large EVA foam material manufacturers will further occupy the market, and some industry integration will be achieved through mergers and acquisitions in the industry. From the downstream perspective, on the one hand, the existing demand for the industry will continue to be strong, and with the upgrade of the industry, the requirements for the quality and characteristics of EVA foam materials will also increase, and it will also bring higher profits. On the other hand, more emerging application areas will be developed. Moyuan Company announced;