Ethylene Dichloride (EDC) market continued its downward trajectory in first half of May xxxx. The decline in the prices was primarily attributed to weakened demand from downstream VCM (vinyl Chloride Monomer) production sector while the supply outpaced the current demand leading to a downward pressure in the market. The market sentiments continued to be weak and bearish which led to declined prices.
The supply front reflected a slight oversupply situation in the market. Despite declining production rates amid intermittently tight Chlorine supply, the market situation continued to be oversupplied. The feedstock Chlorine availability declined which restricted the production capacity for EDC. However, despite the tight supply conditions, the consumption of EDC continued to be low from major downstream sectors, therefore the excess supply could not be absorbed by the market leading to an excess supply despite slow production rates. Inventory levels...
