European and Middle Eastern Ethylene Dichloride Market Holds Steady Amidst Lack of Competitive Bids
European and Middle Eastern Ethylene Dichloride Market Holds Steady Amidst Lack of Competitive Bids

European and Middle Eastern Ethylene Dichloride Market Holds Steady Amidst Lack of Competitive Bids

  • 04-Mar-2024 4:32 PM
  • Journalist: Xiang Hong

During the week ending on March 1st, 2024, the prices of Ethylene Dichloride in German and Saudi Arabian markets have maintained stability. In the German market, there are increasing concerns related to the construction and real estate sectors. The stability in Ethylene Dichloride prices in the face of these concerns suggests a cautious market sentiment and were influenced by factors such as subdued demand, economic uncertainties, or other considerations in these specific industries.

The Ethylene Dichloride prices in Europe, specifically in the German market, have remained steady at USD 350/MT for the week ending March 1st, with the stability in upstream Ethylene prices contributing to this consistency. Simultaneously, prices in the downstream PVC market have also exhibited stability supporting Ethylene Dichloride prices. The decline in Eurozone activity, particularly in residential projects during February, has resulted in a downturn in construction activity for the first half of Q1 2024. This reduction has led to an overall decrease in demand for PVC derivatives, impacting the prices of Ethylene Dichloride. The manufacturing sector in Germany further declined in February, with a faster contraction in output and new orders, as indicated by the final Purchasing Managers' Index (PMI) for German manufacturing. New orders, contracting for 23 consecutive months, have significantly influenced the sector's overall performance, with surveyed firms attributing the decline to customer hesitancy, destocking tendencies, and tight financial conditions. Additionally, high interest rates and elevated inflation have put an end to the property boom in Germany, resulting in weakened demand and a decline in prices for Ethylene Dichloride. The German construction sector is currently facing a significant downturn, prompting calls for immediate government intervention, as established developers like Project Investment and Eurobond have declared bankruptcy, highlighting deep financial troubles within the industry.

In Saudi Arabia, prices of Ethylene Dichloride have also remained stable during the week due to low demand and destocking of inventory. The prices have been consistent for the past few weeks, with Ethylene prices in Saudi Arabia increasing, which does not support Ethylene Dichloride prices. The stability is attributed to moderate supply and low demand, with no major development projects underway. The country's oil production cuts indicate high inventories for oil and oil cracks, potentially necessitating destocking, and production reduction, given that a significant portion of the country's revenue comes from oil exports.

As per ChemAnalyst's analysis, it is expected that the prices of Ethylene Dichloride in the German market will likely remain stable in the upcoming weeks of March. This stability is attributed to subdued demand from the downstream sector and a decline in the construction and real estate markets. The decreasing Purchasing Managers' Index (PMI) is also contributing to the market's concerns. Similarly, there is an anticipation for Ethylene Dichloride prices in Saudi Arabia to stay firm in March, with the tight supply identified as a key factor supporting this stability. However, there are concerns about sluggish end-user demand of Ethylene Dichloride, particularly with the approaching holy month of Ramadan. Additionally, economic challenges across the region are acting as factors that may limit the potential for significant price hikes in the near term.

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
Ethylene Dichloride Market Dips Amidst Sluggish Purchasing Trends, Inventory Surplus
  • 11-Apr-2024 3:16 PM
  • Journalist: Yage Kwon
Global EDC Market Shows Stability Amidst Regional Fluctuations
  • 18-Mar-2024 6:27 PM
  • Journalist: Motoki Sasaki