US ethylene dichloride values fall by $25/tonne, move wider

25 November 2009 16:22  [Source: ICIS news]

HOUSTON (ICIS news)--US ethylene dichloride (EDC) values fell by $25/tonne (€17/tonne) on the low end of the published range as buyers and sellers had divergent ideas regarding market direction, sources said on Wednesday.

US EDC spot prices were at $300-345/tonne FOB (free on board) US Gulf (USG) during the week, after falling by $25/tonne from a range of $325-345/tonne FOB USG the previous week, according to global chemical market intelligence service ICIS pricing.

Sellers maintained EDC values were on the rise and would hover around the $350s/tonne for the next few weeks. But another scenario emerged as buyers quoted trading ranges at $300/tonne FOB US Gulf.

A trader said three EDC fixtures for early December loading were moving out of the US Gulf and headed toward Asia, in a possible move to take advantage of price differentials between the US Gulf and Asia.

EDC is a key feedstock used in the production of vinyl chloride monomer (VCM), which is used to produce polyvinyl chloride (PVC). PVC consumption is mostly influenced by the construction and housing industries.

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

($1 = €0.67)

For more on EDC, visit ICIS chemical intelligence
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By: Leela Landress
+1 713 525 2653

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