Ethylene dichloride Prices, markets & analysis
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Use the independent price assessments and market coverage in our price reports to track the regional Ethylene dichloride market.
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Ethylene dichloride Asia, Europe & US Transcript
ICIS publishes a weekly global report on ethylene dichloride or EDC which covers the markets in Asia, United States and Europe.
The report tracks CFR northeast and southeast Asia prices, as well as FOB US Gulf and western Europe prices. Feedstock ethylene prices are also included.
Our global team of editors assess prices based on information supplied by our extensive list of market sources which include buyers, producers and traders.
Asia is the main destination for exports of EDC and our report tracks these as they happen. Deep sea export business is almost exclusively for the production of polyvinyl chloride, although there is significant demand for EDC from non-vinyl buyers in China, this is minor compared with the demand from the vinyl sector.
Price differentials between the different end-use sectors therefore result, with non-vinyl buyers willing to pay a premium price to secure EDC supply.
With its global outlook, based on strong regional reporting, our information on spot-transactions, supply-demand balances, exports and imports as well as contract price negotiations and settlements, provides readers with a very comprehensive overview of all the factors impacting EDC markets.
Our readers can and do keep on top of market movements and use our information as a reference for their own transactions
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Ethylene dichloride (EDC) prices started declining from the beginning of the second quarter, despite stable feedstock ethylene prices. This was primarily due to a drop in demand for spot EDC as most buyers had ample stocks from term contracts.
According to ICIS data, prices on 21 March were at an average of $495/tonne CFR (cost & freight) NE (northeast) Asia before falling to a five-month low of $450/tonne CFR NE Asia on 30 May. However, the prices rebounded in June as some Japanese producers switched to purchasing spot EDC instead of producing it due to higher electricity tariffs.
In the meantime, prices in southeast Asia fell from $492.50/tonne CFR SE (southeast) Asia on 4 April to $437.50/tonne CFR SE Asia on 20 June, the lowest level since December 2013. This was primarily due to weak demand, as buyers enjoyed comfortable inventory levels.
Producers were unwilling to lower their offers because of high feedstock costs and electricity prices, while buyers had no inventory pressure to buy. Due to this huge buy-sell gap, many participants expected the spot market to remain less active if compared with other vinyl products. Active buyers were expected from China and Japan only, although Japanese buyers could switch back to producing EDC when electricity prices revert to normal at the end of the summer season in October.
Updated to Q2 2014
Direction in the European ethylene dichloride (EDC) merchant spot market has been mixed during the second quarter. Prices were steady during April, with values at $390-410/tonne FOB (free on board) NWE (northwest Europe.
However, in the first part of May, prices had slipped slightly to $380-400/tonne FOB NWE in week ending 16 May, on the back of little-to-no merchant buying interest and no arbitrage possibilities. However, EDC spot prices had stabilised in the second part of the month as there was no real pressure to buy or sell in the merchant market.
In June, prices were stable to slightly firmer, supported by some renewed merchant buying activity and limited EDC merchant spot availability. News of the sizeable increase in the upstream ethylene contract price for July, was also helping to support a slightly firmer spot EDC price tendency at the end of June. By week ending 27 June, prices were assessed at $400-410/tonne FOB NWE.
Updated to Q2 2014
The US ethylene dichloride (EDC) market saw growth in exports during the first half of the year and in the second quarter.
The outage of Axiall’s vinyl chloride monomer (VCM) plant in Lake Charles, Louisiana, meant that EDC manufactured for further processing to end-product polyvinyl chloride (PVC) at that plant was forced to find markets elsewhere. At least some of it ended up in export markets.
The US increased volumes to Egypt, Taiwan, Korea and India, a new market for US EDC exports during the quarter.
Spot EDC prices in the US have eased down slightly during the first half of the year, but pointed upward in June as outages in other regions increased demand for US product.
Over the past year, EDC prices have moved from about $250/tonne to enter the third quarter at an average $385/tonne, which appears to be a new level.
Market participants are watching Westlake Chemical’s planned acquisition of German specialty PVC maker Vinnolit. They say it may mean that Westlake EDC, made from US cost-advantaged shale gas, may be shipped to Europe for use as a low-cost feedstock once the deal is finalised.
Updated to Q2 2014
ICIS provides pricing information, news and analysis for all major petrochemical and chemical markets, including Ethylene dichloride.
We offer unbiased and independent price reporting, with our price assessments being widely quoted as benchmarks in contracts.
Our information is collected from market participants by our global network of reporters, delivering unrivalled coverage of established and emerging markets, including China and Asia.
ICIS price assessments are based on information gathered from a wide cross section of the market, comprising consumers, producers, traders and distributors. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments, giving you a robust reference for your negotiations.
ICIS collects pricing data on a wide range of chemical, energy and fertilizer products, including Ethylene dichloride. Our extensive experience in price reporting means we can offer you access to historical data dating back more than 20 years for certain commodities.
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ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
Our in-depth market knowledge drives our specialist focus, as we recognise the importance of individual market dynamics and not a one-size-fits-all approach.
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