US ethylene dichloride values poised to fall on waning demand

05 October 2009 16:23  [Source: ICIS news]

HOUSTON (ICIS news)--US ethylene dichloride (EDC) spot values were poised to drop due to weakening demand in Asia and the US, a market player said on Monday.

The US EDC spot price range was $365-390/tonne (€252-269/tonne) FOB (free on board) US Gulf, according to global chemical market intelligence service ICIS pricing.

But the seasonal demand lull in the fourth quarter has pushed US domestic values lower with price ideas headed toward the $320s/tonne range, market participants said.

In Asia, EDC prices have dropped steadily since the beginning of September as buyers waited on the sidelines as ethylene values fell and downstream polyvinyl chloride (PVC) demand remained sluggish.

EDC is a key feedstock used in the production of vinyl chloride monomer (VCM), which is used to produce PVC.

EDC producers in the US include Formosa Plastics, Georgia Gulf, Occidental Chemical (OxyChem), PPG Industries, Dow Chemical and Westlake.

($1 = €0.69)

For more on EDC visit, ICIS chemical intelligence
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By: Leela Landress
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