Throughout 2012, activity in the global ethylene dichloride (EDC) market has been characterised by slow demand from the downstream polyvinyl chloride (PVC) market and high feedstock ethylene costs. Those trends look to continue into the second half of the year, although they vary, depending on the region.
In Asia, PVC spot pricing has fluctuated as a result of feedstock costs and lacklustre demand, driven by the continuing eurozone crisis and the slowdown in the Chinese construction market.
The economic troubles in Europe have dampened demand for PVC and consequently for EDC, as the construction sector, one of the mainstay end-users of PVC, has failed to rebound significantly following the crisis of 2007-2009.
In the US, demand for PVC has begun a slow resurgence, with the home construction industry showing some signs of life, particularly in the latter part of the year. Producers also continue to target their product to overseas markets, particularly Latin America, where demand has been more consistent.
Updated to mid-November 2012