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 pressure process.