Category

Countries

Ethylene Dichloride Market Dips Amidst Sluggish Purchasing Trends, Inventory Surplus
Ethylene Dichloride Market Dips Amidst Sluggish Purchasing Trends, Inventory Surplus

Ethylene Dichloride Market Dips Amidst Sluggish Purchasing Trends, Inventory Surplus

  • 11-Apr-2024 3:16 PM
  • Journalist: Yage Kwon

The Ethylene Dichloride market has seen a downward trajectory, with declining demand for Ethylene Dichloride globally. In the US, Ethylene Dichloride FOB prices experienced a significant decrease, dropping nearly 11% from USD 280/MT to USD 250/MT during March 2024. This decline was mirrored in US domestic Ethylene Dichloride prices, indicating subdued demand. Although Ethylene prices in the upstream market saw a slight increase, Poly Vinyl Chloride (PVC) prices fell by USD 2/MT. Market activity for US spot export Ethylene Dichloride remained thin, despite the traditional anticipation of increased demand ahead of summer. Meanwhile, in Brazil, Ethylene Dichloride prices declined by nearly 10%, driven by low demand and increased imports from the US, contributing to an overall downward trend.

In European, Ethylene Dichloride prices witnessed a decline despite a notable rise in crude oil prices. Weak overall demand was reflected in lower contractual pricing, with lower energy costs also playing a role in driving down prices. Importers faced challenges with competitiveness due to spot prices not aligning with domestic ones, and despite improved market sentiment in Europe, demand remained subdued. Fewer import opportunities were observed, with pricing lower and logistics/storage costs higher, posing challenges to achieving a successful economic netback.

In the Asian Pacific region, Ethylene Dichloride prices remained stable with the week ending on 05-April, supported by a quiet upstream Ethylene market in China. Asian polyvinyl chloride (PVC) prices also remained stable, although some fresh offer levels for April were met with hesitation from buyers. Market participants adopted a wait-and-see approach following India's initiation of an antidumping investigation on suspension-grade PVC demand from several countries. Downstream demand was predominantly rigid, with no significant positive factors expected in the short term. In the South Korean market, Ethylene Dichloride prices saw a significant decline of 4.2% over the month, primarily driven by decreased demand from importing countries like China and Thailand. South Korea, a major exporter of Ethylene Dichloride to the Asia-Pacific region, witnessed a reduction in demand, particularly from China and Thailand, leading to lower prices within the South Korean market. Expectations persist for continued weakness and consolidation in PVC spot prices, reflecting cautious market sentiment amid uncertainties surrounding trade investigations and subdued demand. These dynamics underscore the current cautious market sentiment amidst uncertainties and subdued demand.

According to ChemAnalyst, there is an expectation for an increase in the prices of Ethylene Dichloride. This anticipated rise is attributed to the current increase in ethylene prices in the upstream market. If ethylene prices continue to rise in the same proportion, it is likely that Ethylene Dichloride prices will also increase, potentially reaching new highs. Additionally, the prices of crude oil are on the rise due to low supply levels. As a result, inventories may decline in the future. Considering these factors, the current decline observed in the Ethylene Dichloride market may not be sustainable, and prices are expected to incline in the forthcoming weeks.

Related News

Global EDC Markets Navigate Turbulence Amid Cracker Closures and Logistics Challenges
  • 17-May-2024 3:39 PM
  • Journalist: Emilia Jackson
Global Ethylene Dichloride Prices Tumble on Weak Crude Oil Support
  • 01-May-2024 3:48 PM
  • Journalist: Francis Stokes
Global EDC Market Shows Stability Amidst Regional Fluctuations
  • 18-Mar-2024 6:27 PM
  • Journalist: Motoki Sasaki
European and Middle Eastern Ethylene Dichloride Market Holds Steady Amidst Lack of Competitive Bids
  • 04-Mar-2024 4:32 PM
  • Journalist: Xiang Hong