Yu energy chemical 150000 tons of kettle method EVA project officially started: directly hit the photovoltaic-grade import substitution core pain point, the northwest high-end production capacity pattern changed.

March 15, 2026 shaanxi Yanchang China Coal Yulin Energy and Chemical Co., Ltd. (Yuneng Chemical) 150000 tons/year kettle type EVA device supporting facilities and system engineering officially started and entered the full construction phase. The project is located in Jingbian Economic and Technological Development Zone, Yulin, Shaanxi. It is a key construction project of Yanchang Petroleum Group. It is also included in the key industrial upgrading project of the provincial, municipal and county governments. The supporting projects are contracted by Beijing Petrochemical Engineering Co., Ltd. (Beiyou Engineering). The implementation covers the core content of public and auxiliary facilities and pipeline laying.

Why is 1. Kettle Method? Process Route Determines Product Cap and Market Positioning

the route selection of EVA production process directly determines the market ceiling that the product can reach. EVA production is mainly divided into two routes: tube method is suitable for the production of low VA content EVA, large production capacity, low cost, is the mainstream route of general-purpose EVA; high VA content EVA(VA content can reach more than 28%), the melt index adjustment range is wider, more suitable for photovoltaic film, high-end cables and other high-end applications that require strict material performance.

This route choice directly cuts into the core pain point of domestic substitution. Domestic kettle-type production capacity accounted for a long-term low, high-end photovoltaic-grade EVA heavily dependent on Japan, South Korea and other import sources, the relevant suppliers long-term dominant pricing. Photovoltaic film is the most important downstream application of kettle method EVA, used to encapsulate photovoltaic cell modules, the light transmittance, weather resistance, cross-linking and other performance requirements are very high, must use high VA content of the kettle method products. With the continuous expansion of the global PV installed scale, the growth rate of EVA demand for PV film is significantly higher than that of general EVA, and the tight supply and demand pattern is difficult to fundamentally change in the short term. High-end cables are another important export-nuclear power, submarine cables and other special cable areas of the kettle method EVA demand barriers are also very high, the added value is significant.

Therefore, the strategic intent of the selection of the kettle method route is clear: bypass the stock competition Red Sea of the tube method general material, directly lay out the high-end photovoltaic grade and special cable grade EVA track, to import substitution logic to build a differentiated competitive advantage. After the completion of the project, the relevant products can achieve import substitution, effectively fill the domestic high-end EVA material supply gap, to help the photovoltaic industry chain raw materials independent control.

2. market impact study: structural shortages continue, two signals worth tracking

the extent of the impact of new capacity depends on two core variables. At present, a number of EVA projects in China are being intensively promoted, and the market supply pattern is being profoundly reconstructed. However, the actual release pace of high-end production capacity of kettle method is still slower than that of general production capacity of tubular method-this means that the structural shortage of high VA content photovoltaic grade EVA will continue in the short term. Once the new production capacity of 150000 tons/year kettle method is implemented, it will have a targeted impact on the market instead of general supply pressure.

For overseas traders and supply chain practitioners, it is recommended to focus on tracking two market signals:

one of them, actual commissioning time node of main unit-- The current project is in the supporting project start stage, the construction progress and commissioning cycle of the main device will directly determine the capacity release time window, is the primary indicator to judge the market pattern switch point.

Second, proportion and shipment scale of special materials for photovoltaic film with high VA content in product specifications-- Even if the production capacity is released as scheduled, if the actual product regulations are mainly low VA content, the substitution of photovoltaic-grade import sources will be greatly reduced.

These two indicators will jointly determine the substantial substitution of the 150000-ton production capacity of Yuneng to the existing import sources, which is a key observation window for studying and judging the evolution of the high-end EVA supply pattern in the northwest region, and it is recommended to include the key tracking system to assess the adjustment space of export strategy and contract rhythm to China as early as possible.