During the week ending 8th August 2025, the U.S. Ethylene Dichloride (EDC) market remained stable, reflecting a balanced supply position against muted demand. Production ran consistently, supported by steady operating rates and lower feedstock ethylene costs, while inventories stayed elevated due to limited domestic pull-through and subdued export flows. The construction sector showed only slight improvement in builder sentiment, but affordability constraints kept PVC offtake soft. In the automotive sector, June’s strong vehicle sales—driven by pre-tariff buying—failed to translate into increased PVC consumption. With both domestic and global PVC demand weak, the EDC market is expected to remain steady in the near term, with potential recovery toward the end of 2025.
During the week through 8th August 2025, the U.S. Ethylene Dichloride (EDC) market held prices steady, indicating a balanced supply situation weighed against muted demand. Although production continued to be steady and well-correlated with consumption levels, downstream PVC markets remained behind, holding spot activity at modest levels.
Inventory levels remained above average as tepid exports and contained domestic pull-through were unable to take some of the pressure off stocks. The modest improvement in the sentiment of the construction sector has not yet filtered through to concrete PVC offtake, while the auto sector's robust sales in June provided no spill-over impact. With both local and international PVC demand softer, the short-term EDC market is likely solid in price but wary in tone, with gradual strengthening more probable towards the end of the year.
U.S. EDC availability in early August 2025 was well-placed, supported by steady operating rates and no key production outages. The modest drop in ethylene (feedstock of EDC) prices softened the cost of production so that producers were able to continue production without severe cost issues. Inventory build-up continued account of restricted offtake, not as a result of any supply chain tension. Exporting was mild as international PVC demand also indicated weakness and avoided meaningful stock depletion. The supply side was characterized by consistent manufacturing streams, well-balanced market fundamentals, and limited logistical clogs. In the meantime, the EDC supply scenario remains underpinned, providing cost predictability to producers but also increasing competitive pressures in a market where demand recovery has not yet fully been felt.
EDC demand in the United States up to July and the early part of August 2025 continued to be subdued, mainly because of weak downstream PVC demand. In construction, builder sentiment improved marginally, buoyed by an increase in expectations for forward sales, but affordability concerns continued, with 38% of builders reducing prices and 62% providing incentives. The motor vehicle industry recorded a dramatic 9% month-to-month and 7.5% year-over-year increase in June vehicle sales, fuelled mostly by pre-tariff purchasing momentum but not converted into more robust PVC draw. The gap between headline sector expansion and actual PVC consumption has continued to keep EDC demand growth in check in the near term.
According to the ChemAnalyst database, the U.S. EDC market will continue to maintain present stability through the near term, with prices remaining anchored by well-balanced supply and weak but persistent demand. Any sustained pickup will depend on a more robust recovery in construction activity and better pull-through from PVC applications in housing as well as automotive production. If housing sale expectations come to fruition and international PVC trade stabilizes, EDC demand may post a stronger uptick late in Q4 2025. In the meantime, the U.S. EDC market will continue in a balanced wait-and-see state, with producers carefully observing both domestic housing data and overseas PVC sentiment for a shift.
