Global Ethylene Dichloride Market Suppresses Along With Weak Downstream Demand
- 16-Nov-2022 7:20 PM
- Journalist: Harold Finch
Hamburg, Germany- Ethylene Dichloride prices retained their downtrend as sufficient supply in Europe put an added strain on sellers, not to mention subdued demand. Import of Ethylene Dichloride has tumbled to its lowest levels compared with the past few months. Restricted trade volume due to oversupplies hampers the market fundamentals and lower bidding for fresh stock.
Feeble demand and weak cost support led to lower purchasing and higher regional product availability. Polyvinyl Chloride (PVC) inventories also elevated in the region due to the gloomy downstream demand outlook. With the week ending on 11th November 2022, the price of Ethylene Dichloride in Germany slipped to USD 329/tonne FD Hamburg. Waning PVC demand from the construction market adds inflationary pressures and strains exports from the United Kingdom (UK) and Belgium to Germany. Moreover, Petkim, a Turkish Petrochemical company, plans to resume PVC production by mid-month now that the company has restarted its ethylene cracker.
In the USA, disruption in the supply-demand of Ethylene Dichloride and massive stockpiling in the region reduced the Ethylene Dichloride prices. Market witnesses a steep drop in feedstock Ethylene and Chlorine prices in the wake of low demand and weak trading dynamics. Spot demand declined with slow offtakes of Ethylene Dichloride, which put pressure on the suppliers to clear their existing inventories. Elevated energy and utility costs and subdued demand forced the producers to cut their production rate to avoid further stockpiling.
According to ChemAnalyst, the price of Ethylene Dichloride in the global market will decline further in the wake of the bearish feedstock Ethylene and Chlorine market. Exports of Ethylene Dichloride (EDC) from the USA and United Kingdom (UK) to the global market will decline due to oversupplies. Inflationary pressures and lethargic trading dynamics ahead will also likely keep demand under check. Downstream Polyvinyl Chloride (PVC) market will also slump as deteriorating demand from the construction industry will hinder the price trend.