Home Commodities Chemicals Ethylene-dichloride Ethylene dichloride prices, markets & analysis

Ethylene dichloride prices, markets & analysis

Speak to ICIS
Jump to section

The weekly Ethylene dichloride report is a global report encompassing updates from Asia, Europe and the US.

Each region provides news and market intelligence on upstream developments, production, demand and any other influencing factors. All areas focus on spot prices with quotes published for NWE, USG and NE Asia. The data and commentary provides you with a reliable source of independent information essential for making business decisions within this area of the industry.

Speak to ICIS Find out more about the World Chlor-alkali Conference

Market Overview

Updated to Q1 2021

Asia

Global supply was adversely affected in Q1, as major producers in the US had most of their production shut in mid-February by a severe polar storm. Spot availability from Asian producers remained limited for most of Q1, as volumes produced largely went into the production of main derivative PVC amid record-high prices for the resin. Supply conditions tightened further in late Q1 as a Middle Eastern producer declared force majeure in late-March.

Demand in Asia was supported in Q1, as buyers in the region sought to restock in order to maximise their downstream PVC production, amid record-high PVC prices globally. Asian PVC producers have sought to fill in the global supply shortfall caused by production issues arising from the mid-February polar storm in the US. EDC buyers in Asia subsequently had to procure material from a limited pool of suppliers in Q1.

Europe

EDC availability fell in 1Q as global prices were high, limiting imports, and several producers carried out shutdowns or had production restrictions. Sources saw little spot availability and very few deals were carried out. The majority of material produced in Europe was structurally reserved for integrated producers or for long-term contracts.

EDC demand increased in Q1 on the back of higher global consumption for downstream products. Export prices for downstream PVC reached record levels following US production issues in February. which triggered higher consumption of European material. In addition, construction demand rose strongly as the market recovered from the effect of the coronavirus pandemic across much of the world.

US

Supply shrank sharply after the February freeze knocked out ethylene and chlor-alkali plants along the US coast. The freeze knocked out the entire production chain up and downstream of US EDC, including for derivative polymer PVC. Six weeks after the freeze, most production was still constrained on slow start-up of ethylene and chlorine plants.

Demand held steady at unseasonably high levels through Q1 on an unexpected boost in construction activity that drove strong demand for downstream derivative PVC. Demand for EDC to make PVC defied the usual winter slowdown, much of it on coronavirus factors. More people working from home and enjoying more disposable income from not eating out or driving or taking vacations drove rising rates of home improvement activity and low interest rates prompted more homebuying.

REGIONAL OUTLOOK

Updated to Q2 2021

Asia

Global supply conditions may ease in Q2, as integrated producers in the US have stabilised chlor-alkali operating rates. EDC and downstream vinyls production rates are also expected to stabilise. Nevertheless, deep-sea spot availability to Asia could be capped as integrated US producers may hold any excess EDC volumes captive into the production of main derivative PVC, amid global record-high prices for the resin.

Demand for EDC in Asia is expected to be supported as the downstream PVC sector approaches its peak demand season in Q2. Downstream PVC demand in Asia would likely pick up in Q2 on favourable weather conditions for pipe-laying and construction activities. Downstream PVC consumption is also expected to increase on robust spending on infrastructure, particularly in China. Overall sentiment is also positive on the prospects of economic growth in Asia, amid coronavirus vaccination roll-outs.

Europe

EDC availability is likely to remain stable in Q2. There are no significant capacity changes expected, with spot likely to remain a relatively minor factor as the majority of material is integrated into PVC production or tied up in long-term contracts. Global PVC prices may fall as availability slowly improves in the US, which is likely to increase the availability of imports in Europe.

EDC demand is expected to be mostly stable in Q2. The outlook for downstream products is relatively bullish as PVC prices are likely to remain high and strong growth is forecast for the construction industry. Spot demand is likely to remain a minor part of the equation but may receive a boost if there is an unforseen production problem in the PVC market.

US

Supply is expected to grow during Q2 from the tight supply in Q1 caused by the February deep freeze along the Texas coast. Plant restarts have been prolonged by damage caused by sudden shutdowns on the power outages caused by the storm. More normal production is expected near the end of May and supply and export balances restored by the start of Q3.

Demand for EDC to make PVC is expected to grow during Q2 on the build of activity toward peak construction season. Construction activity is the largest demand sector for PVC and it has been elevated for the past eight months. That is expected to grow on seasonal factors and the easing of coronavirus restrictions with the wide rates of vaccination and expectations of further opening of the economy. Stimulus spending and low interest rates will add fuel.

Speak to ICIS

How we can help

We offer the following regional Ethylene dichloride analysis and news coverage to keep you informed of factors and developments affecting prices in the Ethylene dichloride marketplace.

  • Price reporting

    Price Reporting – More information about the price reports we publish on Ethylene dichloride

    Independent price assessments and market coverage by region

  • Price history

    Price History – More information about the historical price data we publish on Ethylene dichloride

    Track historical price data

  • News & analysis

    News & Analysis – News & market analysis specifically relating to Ethylene dichloride

    Breaking news of latest developments affecting the markets.

    Insight and analysis of factors driving prices.

Find out more about our services

Services

Find out more about our services

Pricing information

Regional price assessments, published daily or weekly, enabling you to keep track of trading prices, understand price drivers/fluctuations and set a benchmark for contract price settl ements. ICIS offers reports on over 180 commodities across the global petrochemical, energy and fertilizer markets. Information covered in our price reports includes:

  • Spot and contract price assessments
  • Market commentary on trends and developments
  • Transactions reported and confirmed
  • Plant and production news

Information is accessed online, via the ICIS dashboard service and is configurable to suit your preferences.

Price forecast services

Produced by the ICIS Consulting team, these reports give a robust rolling 12-month price forecast, trade balances and in-depth analysis into where markets are heading – providing a valuable tool to support your short- to medium-term plans.

Dashboard – Easy access to ICIS pricing data

ICIS pricing intelligence is delivered to you online via the ICIS dashboard. Here you can view your reports and also access other useful services including related news, analysis, historical data and market alerts.

ICIS dashboard also makes it easy for you to create pricing charts, download price history and export data to create tailored analytical models.

Margin reports

ICIS weekly margin reports deliver the detail you need to understand how production costs and prices are affecting margins, enabling you to judge the likely impact on your business and optimise your upstream and downstream business decisions.

Find out more about ICIS margin reports >>

Supply and Demand Window on ICIS Dashboard

The Supply and Demand Window on the ICIS Dashboard provides a snapshot view of historical and forecast information for supply and demand, production capacity and trade flows – a key tool to help safeguard future investments within the chemicals market.

Find out more about the ICIS Supply and Demand Window

 

24-hour global coverage of breaking news in the petrochemical industry, including updates on production, shutdowns and key transacted deals, keeping you informed of market developments as they happen. The ICIS news service allows you to customise the market alerts delivered to your email inbox, providing the business-critical information you need straightaway.

Supply & Demand Data

An expert view of supply and demand comprising four fully-reconciled databases, giving you access to extensive data for more than 100 markets. Information is included on global and regional trade flows, production, capacity and sources of demand in the short-, medium- and long-term. Data can be downloaded, customised and queried to support your planning requirements and your strategic decisions.

Training courses

ICIS provides specialist training courses across the global petrochemicals, base oils and fertilizers industries. Our training team of industry experts can help you increase your knowledge of the industry and gain the insight and know-how needed to operate and trade effectively.

  • Find out more about ICIS training courses >>

Conferences

ICIS produces a series of highly informative and timely conferences. Extensive research is carried out to ensure that each programme delivers the information you need and addresses current industry issues. We source speakers who have the appropriate expertise and experience to deliver excellent quality papers.

  • Find out more about ICIS conferences >>

Global markets

Working closely with you to understand your strategies, challenges and ambitions, the ICIS consulting team deliver tailored advice and solutions to suit your unique requirements. With many years’ experience of guiding business leadership teams, we show you how market conditions can make a positive or negative impact on your long-term plans.

China markets

ICIS expert consultants can provide your organisation with the insight, intelligence and data needed to build and grow your business in China. We can help you to gain a clear view on the short and long-term supply and demand picture in the chemicals, energy, iron and steel, non-ferrous metals and paper and pulp markets in China.

Methodology

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.

Over 25 years of reporting on key chemicals markets, including Ethylene dichloride, has brought global recognition of our methodology as being unbiased, authoritative and rigorous in preserving our editorial integrity. Our global network of reporters in Houston, London, Singapore, Shanghai, Guangzhou, Mumbai, Perth and Moscow ensures unrivalled coverage of established and emerging markets.

Ethylene Dichloride EDC Methodology
The main end use for EDC is in the production of vinyl chloride monomer and this accounts for over 95% of consumption.

Read more…

About Ethylene dichloride

Ethylene dichloride (EDC) is a clear, colourless, oily liquid with a sweet, pleasant chloroform-like odour. It is highly volatile, toxic, flammable and miscible with chlorinated hydrocarbons and most organic solvents. It reacts violently with aluminium, alkali metals, alkali amides, ammonia, bases, strong oxidants and attacks many metals in presence of water.

Around 95% of EDC is used in the production of vinyl chloride monomer (VCM), nearly all of which goes into polyvinyl chloride (PVC).

Other outlets for EDC are chlorinated solvents such as ethyleneamines, trichloroethylene, vinylidene chloride and trichloroethane. It is used as an intermediate in the production of perchloroethylene (tetrachloroethylene) and as a catalyst in hexachlorophene production.

EDC has been used as a solvent in the textile, metal cleaning and adhesives industries. Solvent markets tend to be mature due to environmental pressures to reduce emissions and declining in the case of perchloroethylene.

China April industrial output growth slows to 9.8%
Mon, 17 May 2021 09:10

SINGAPORE (ICIS)--China’s industrial output in April posted a 9.8% year-on-year growth, lower than the 14.1% pace recorded in March, official data showed on Monday. Higher production in April was...

Read
Europe top stories: weekly summary
Mon, 17 May 2021 08:00

LONDON (ICIS)--Here are some of the top stories from ICIS Europe for the week ended 14 May. High global chemicals prices may stoke downstream inflation Rising chemical prices around the world may be...

Read
Thailand's Q1 GDP contracts by 2.6% amid poorer exports
Mon, 17 May 2021 07:23

SINGAPORE (ICIS)--Thailand's economy contracted by 2.6% year on year in the first quarter of this year, weighed by poorer exports and consumer spending, official data showed on Monday. The GDP...

Read
Arkema's Bostik to acquire Edge Adhesives Texas
Mon, 17 May 2021 07:16

SINGAPORE (ICIS)--Bostik is acquiring adhesive solutions firm Edge Adhesives Texas for an undisclosed fee, parent firm Arkema said on Monday. Edge Adhesives Texas is a developer and producer of...

Read