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The Mercosur–EU free trade agreement, signed on January 19, 2026, is expected to significantly boost Brazilian footwear and plastics exports, increasing demand for locally produced EVA and other polymers while promoting sustainability standards. In the EVA market, Central/South American imports declined sharply in 2025, while exports grew modestly, mainly to China. LEVA and MEVA remain the dominant EVA grades used across foams, films, adhesives, and molding applications.

PE producers are pushing January price increases of up to 5.0 cpp, but early-month activity is limited as buyers resist hikes amid weak demand.

China’s EVA market stayed weak in December amid soft demand and rising supply, prompting producers to cut prices and destock. January is expected to remain pressured, with only a brief early-month lift possible from pre–Lunar New Year restocking. Overall sentiment remains bearish, with any stabilization dependent on tighter inventories and a clearer demand recovery, especially in PV applications.

North American polystyrene prices may rise slightly in January due to higher benzene and styrene costs, despite flat demand expectations. Epsilyte announced a 4.0 cpp EPS increase for January 2026, while overall market conditions remain cautious amid weak demand and ample supply.

China’s EVA market remains under pressure as new capacity, high inventories, and weak downstream demand keep prices near recent lows. With limited demand recovery expected and additional supply coming online, near-term pricing remains soft.