For the Quarter Ending September 2024
North America
In Q3 2024, the North American market for ethylene carbonate experienced a notable downturn, with prices seeing a sharp decline compared to the same period last year. Several factors contributed to this drop, including weak demand, high inventory levels, and sluggish procurement activity.
Additionally, increased imports and limited cost support from upstream sectors added to the downward pressure, reinforcing the overall negative market sentiment. In the U.S., which saw the most pronounced price changes, the trend followed the broader North American market, with prices starting to decline early in the quarter due to ongoing challenges. This downward momentum persisted throughout the second half of the quarter, reflecting a continuous decrease in pricing.
By the end of Q3 2024, ethylene carbonate prices had settled at lower levels, underscoring a challenging market environment defined by oversupply and weak demand. The pricing trend for ethylene carbonate across North America during this period remained consistently negative, shaped by an excess of supply, weak market demand, and difficult conditions in both upstream and downstream sectors.
APAC
In Q3 2024, the Ethylene Carbonate (EC) market in the APAC region experienced a significant upward trend in prices. This quarter has been characterized by a surge in demand from various industries, particularly the battery manufacturing sector, driving market prices higher. Factors influencing this price increase include improved consumer demand, stable support from upstream markets, and heightened procurement activities. China's electrolyte production by leading manufacturers reached 99,500 tonnes in August, a 2.05% month-on-month increase driven by higher production plans from battery cell factories. China, in particular, witnessed the most substantial price changes, with a 26% increase from the same quarter last year. The quarter-on-quarter price change in 2024 stood at 12%, indicating a continued positive trajectory. Notably, the second half of the quarter saw a 4% price increase compared to the first half. The quarter-ending price of USD 945/MT for Ethylene Carbonate Battery Grade FOB Qingdao in China reflects the overall positive pricing environment in the region. This quarter has been marked by stability, with consistent price growth and strong market confidence driving the Ethylene Carbonate market forward.
Europe
In Q3 2024, the European market for ethylene carbonate saw a continued decline in prices, reflecting a bearish sentiment driven by several critical factors. Oversupply issues, combined with weak demand from both Asian and North American markets, played a major role in pushing prices downward. The lack of substantial cost support from upstream sectors also added pressure on ethylene carbonate prices throughout the quarter. The challenging market environment, characterized by high inventory levels and sluggish demand, intensified the downward pricing trend. European producers faced further complications, such as rising production costs, weak consumer demand from downstream industries, and worsening economic conditions, all of which contributed to the difficult conditions in the ethylene carbonate market. Belgium and Germany, in particular, experienced the most pronounced price fluctuations in the region. The steep year-on-year price decline highlights the tough market environment, while the quarter-on-quarter changes and the notable differences between the first and second halves of the quarter emphasize the persistent downward trajectory in ethylene carbonate prices.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American Ethylene Carbonate market exhibited mixed trends. In the early weeks, prices fell due to oversupply and weak procurement from consumers, leading to price declines. Demand for Ethylene Carbonate remained steady at moderate levels, with ample product availability in the local market. According to industry experts, many consumers are hesitant to purchase significant quantities of Ethylene Carbonate at elevated prices from downstream and terminal markets. Despite robust sales in March, many automakers experienced subdued performance in April, with only electric vehicle sales showing notable growth.
U.S. consumer interest in electric vehicles has declined, with surveys indicating only a small portion of the population is interested in EVs. However, hybrid vehicles continue to attract strong interest due to their electrification benefits without significant lifestyle disruptions. Additionally, Tesla is close to losing its position as the leading EV seller in the U.S., as other manufacturers sold approximately 597,000 fully electric vehicles over the past year compared to Tesla's 618,000. This reflects growing competition and potential market saturation concerns for EVs.
On the supply side of Ethylene Carbonate, freight charges along major sea trade routes have increased, making shipments to the U.S. more expensive. Unexpected rises in ocean freight demand from Asia, driven by restocking cycles in Europe and North American importers pulling forward peak season demand, have added strain to the already stretched container market. However, reduced conflict risk premiums, particularly in the Middle East, have eased expectations of supply disruptions, leading to further reductions in international freight charges.
APAC
In Q2 2024, the Ethylene Carbonate market in the APAC region experienced a significant upward pricing trend. This quarter has been marked by a complex interplay of supply and demand dynamics, fluctuating raw material costs, and heightened freight charges. Key factors influencing these price hikes include robust demand from downstream industries, particularly the battery manufacturing sector, and constrained supply due to maintenance shutdowns. Additionally, the persistent increase in crude oil prices has further escalated production costs, adding upward pressure on Ethylene Carbonate prices. Focusing on China, the country witnessed the most notable price changes. The overall trend has been bullish, driven by steady demand from lithium-ion battery manufacturers and ongoing supply chain disruptions. Seasonality also played a role, with elevated demand during the peak season contributing to price surges. The correlation between raw material price increases and Ethylene Carbonate prices was evident, as manufacturers passed on higher costs to consumers. Comparatively, the price of Ethylene Carbonate in Q2 2024 saw a 13% increase from the same quarter last year, reflecting a significant long-term upward trend. From the previous quarter in 2024, prices rose by 2%, indicating stability within an increasing trajectory. Furthermore, the first half of the quarter recorded an 8% higher price than the latter half, underscoring consistent demand and supply constraints throughout the period. The latest quarter-ending price for Ethylene Carbonate Battery Grade FOB Qingdao in China stood at USD 870/MT. This consistent increasing sentiment highlights a predominantly positive pricing environment for Q2 2024, driven by strong market fundamentals and external cost pressures.
Europe
During the second quarter of 2024, the Ethylene Carbonate market in Europe faced several constraints that significantly impacted prices. Although the market experienced instability due to weak consumer demand, prices remained relatively stable. The demand from the downstream lithium-ion battery sector was moderate. In major exporting nations, sellers consistently reduced prices in response to an oversupply situation, as producers increased production levels in anticipation of higher import volumes in April compared to March. This indicated a trend of supply recovery for the Ethylene Carbonate market. In Europe, Ethylene Carbonate prices dropped in mid-Q2 due to weak demand fundamentals, despite support from steady upstream raw material prices. Finished product inventory levels have helped maintain market balance, although spot transactions have remained stable. Data showed a decline in domestic sales, even though consumption in downstream markets stayed consistent. The slowdown in electric two-wheeler growth was linked to reduced subsidies and challenges faced by some OEMs, along with delays in subsidy disbursements impacting affordability and market expansion. Additionally, increased freight charges across major sea trade routes have made shipments more expensive, adding strain to the container market due to unseasonal demand and potential restocking cycles. Overall, the Ethylene Carbonate market remains calm, with limited activity observed in the region.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American ethylene carbonate market continued to face challenges. The supply of ethylene carbonate in the region remained high, while consumption remained sluggish and procurement levels remained heavy from previous periods. The domestic automotive industry's demand for ethylene carbonate stayed low, reflecting the cautious approach of market participants. Major manufacturers focused on fulfilling long-term orders, leading to lower domestic inventories due to slow replenishments.
Moreover, international trade encountered hurdles during this period, driven by conflict in the Middle East and drought in the Panama Canal. These factors resulted in delayed container shipments and increased freight costs. The growing competition from Chinese electric vehicle manufacturers further impacted the profitability of US-based EV companies, exacerbating market challenges.
Additionally, high interest rates raised the cost of financing, which slowed down the adoption of electric vehicles globally. Despite persistent inflation in other consumer goods, the purchase of optional electric vehicles remained slower than anticipated. These factors contributed to the overall bearish sentiment in the North American ethylene carbonate market.
APAC
In the first quarter of 2024, the pricing of Ethylene Carbonate in the APAC region remained stable overall. Several factors influenced market prices during this period. In general, the demand for Ethylene Carbonate from the downstream industries, such as battery and polycarbonate manufacturing, was moderate. However, there were fluctuations in demand from different countries within the region.
China, in particular, experienced the maximum price changes for Ethylene Carbonate.
The market dynamics in China were influenced by factors such as supply and demand fundamentals, manufacturing costs, and crude oil prices. The overall trend in China was bearish, with prices declining slightly. Seasonality also played a role, with the Lunar New Year holidays impacting logistics operations and demand. Compared to the same quarter last year, the prices of EC in the APAC region decreased by 16%. However, when comparing the first quarter of 2024 to the previous quarter, there was no significant change in prices, indicating a stable pricing environment.
Within the first quarter of 2024, there was a price difference between the first and second half of the quarter, with prices declining by 10%. This decline was attributed to various factors, including supply and demand dynamics and manufacturing costs. Overall, the pricing environment for Ethylene Carbonate in the APAC region during the first quarter of 2024 remained stable. As of the end of the quarter, the price of Ethylene Carbonate Battery Grade FOB Qingdao in China was USD 750/MT.
Europe
During the first quarter of 2024, the Ethylene Carbonate market in Europe faced various constraints that significantly impacted prices. These challenges resembled those of the previous quarter, with oversupply being a primary factor leading to reduced demand and subsequently lower prices. The persistent sluggish demand from the downstream lithium-ion battery manufacturing sector continued, as consumers remained cautious amid declining prices.
Moreover, the dominance of the Chinese market in Europe contributed to the overall bearish sentiment. Chinese electric vehicle manufacturers, such as BYD, experienced substantial sales growth, surpassing Tesla as the leading global electric carmaker, further intensifying competition and impacting the profitability of European-based EV companies. However, Belgium stood out as an exception, witnessing a significant surge in sales of battery electric cars.
Additionally, global trade faced hurdles during this period due to conflict in the Middle East and drought in the Panama Canal, resulting in delayed container shipments and higher freight charges. Despite these challenges, fierce pricing competition among European, US, and Chinese EV manufacturers persisted. Throughout this period, the market experienced multiple shutdowns, leading to disruptions that directly influenced prices. Despite these obstacles, there were some slight developments in market transactions for Ethylene Carbonate in Belgium during the quarter.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American Ethylene Carbonate market exhibited a varied trend with prices fluctuating throughout the quarter. Over the three-month period, the demand outlook remained moderate as consumers hesitated on new purchases, focusing primarily on long-term orders. In the initial month, demand was unstable, given the ample material availability observed in the domestic market.
As November unfolded, increased consumer spending and heightened market activities positively impacted the overall economic scenario. However, downstream industries experienced only modest demand. Despite concerns about a potential recession, inflation, and geopolitical uncertainties, consumer confidence in the US grew in both November and December, indicating an optimistic view of future business conditions.
Nevertheless, procurement from battery manufacturing firms remained lackluster due to subdued demand. In contrast, the electric vehicle market demonstrated consistent sales growth throughout Q4, with major players reporting increased month-on-month sales. Additionally, the global electric vehicle battery market remained subdued in Q4 amid tepid demand.
APAC
The APAC region witnessed a stable market situation for Ethylene Carbonate (EC) in the current quarter of 2023 (Q4). The supply chain of EC operated at optimum levels, and the demand from the EV segment remained moderate to high throughout the quarter. The cost pressure from feedstock Ethylene Oxide also fluctuated, which impacted the pricing trend in the product. In the first month, the increase in feedstock Ethylene oxide prices increased the production costs of Ethylene Carbonate. The Chinese domestic market observed a bullish trend throughout the quarter, with moderate supply and demand levels. The supply chain operations were smooth, and no major supply chain constraints or port congestion were reported in the region. The pricing trend of EC in China during Q4 saw a 1.3% increase, settling at USD 838/MT for Ethylene Carbonate Battery Grade FOB Qingdao. The percentage change in the pricing trend of China from the previous quarter was 12%, while the price percentage comparison of the first and second half of the quarter remained unchanged. In conclusion, the market situation for Ethylene Carbonate in the APAC region remained stable, with moderate supply and demand levels and increasing production costs. The Chinese domestic market observed a bullish trend throughout the quarter.
Europe
In the final quarter of 2023, the European ethylene carbonate market displayed a bearish pricing trend influenced by various factors. In October, prices experienced a decline attributed to subdued demand from downstream sectors such as electrolyte solvent manufacturing and other end-use industries. Manufacturing production in the Eurozone contracted, marked by a significant drop in new orders, despite a marginal improvement in the manufacturing PMI, signaling an extended downturn. The sluggish consumer demand resulted in eased supply chain operations. Moving into November, prices continued to decline, driven by persistent low demand from downstream industries. The consumer market observed abundant material availability in the region. Despite a slight improvement in the PMI, manufacturing activities remained on a downward trajectory. Supply chain easing and enhanced vendor performance were observed amid subdued consumer demand and limited market transactions. December witnessed a further decrease in prices due to sustained subdued demand. Downstream industries maintained weak consumer inquiries, leading to negative market sentiments. High product inventories and destocking activities were evident among consumers. Prices of upstream raw materials dropped, and factory gate deflation persisted. Year-end holidays and destocking efforts contributed to reduced industrial activity, prompting manufacturing companies to slow down or temporarily suspend operations.
For the Quarter Ending September 2023
North America
In North America, the Ethylene Carbonate market demonstrated mixed sentiments in the third quarter of 2023. Over three months, the demand outlook swung up and down amid consumers’ reluctance for new purchases and was mainly focusing on long-term orders. The first month observed sufficient material availability in the domestic market whereas, the inquiries from the downstream battery industry for electrolytes manufacturing was low. However, as per the government GDP data, the economy improved at an increased pace from July to September, despite higher interest rates, depleted pandemic savings, and high inflation. August observed a slightly stable situation as the inflationary pressure eased and the trade volumes improved. Nonetheless, prices climbed marginally in September as demand strengthened. Furthermore, despite increased consumer spending, firms around the area saw strong market development. However, procurement from battery manufacturing businesses was disappointing due to low demand, while the electric car sector showed no indications of revival. Furthermore, the global electric vehicle battery market remained subdued in Q3 due to sluggish demand.
APAC
In the Asia Pacific region, the price of Ethylene Carbonate experienced a modest decline in the third quarter of 2023, attributed to several factors, including diminished demand from the downstream battery industry, ample product inventories, and weak cost support from the upstream raw materials Ethylene oxide and Ethylene. In China, Ethylene Carbonate prices exhibited a consistent decline throughout this quarter. In terms of supply, domestic inventories of the product were notably high as operational rates in certain manufacturing units increased, leading to an uptick in supply volumes within the domestic market. On the demand front, inquiries from downstream battery manufacturers slowed as China's EV battery industry achieved self-sufficiency, resulting in stockpiled inventories in the domestic market. The electrolyte solvent market adopted a cautious stance, and the trade environment remained stable. Notably, no significant port congestion or supply chain constraints were reported in this period. Consequently, the market price for Ethylene Carbonate settled at USD 654/MT by the end of September 2023.
Europe
The Ethylene Carbonate market in Europe exhibited mixed sentiments in the third quarter of 2023. Poor demand, built-up inventories, and imports of low-priced goods were a few of the factors that impacted the market prices. Additionally, throughout this period the cost support from the upstream raw materials fluctuated due to fluctuation in the of Ethylene oxide and Ethylene. Moreover, the impact of oscillating crude oil prices also had a slight influence on the manufacturing firms. On the demand front, throughout Q3, the inquiries from the downstream battery manufacturing industry were observed to be poor and according to the market players, sufficient material availability was present in the market. The consumers in the electrolyte manufacturing industry refrained from newer purchases and were mainly focusing on long-term orders. The eurozone economy shrank in this quarter as per the surveys done by a few market participants that showed that demand fell at the fastest pace in the past three years amid consumer spending remaining low owing to rising borrowing costs and higher prices.
For the Quarter Ending June 2023
North America
Prices of ethylene carbonate observed mixed sentiment during the second quarter of 2023. In the month of April, the price of ethylene carbonate declined due to the negative cost-push of the feedstock ethylene oxide. The demand from downstream industries like consumer products remained subdued due to high-interest rates to curb the inflationary pressure. The demand from the consumer electronics and EV section remained stable and showed a bullish trend. Inventory levels were adequate, and imports from China, Japan South Korea significantly affected the domestic pricing. In the months of May and June 2023, the prices of ethylene carbonate showed a stable trend with a slightly bullish sentiment in the market, as the consumer demand improved as inflationary pressure reduced. Downstream industrial demand improved for the coatings, cosmetics, and paint industries. The demand for EVs and consumer electronics also improved as the macroeconomic parameters improved in the United States. The consumer sentiments by the end of June improved as the downstream EV sector reported higher sales compared to the previous year.
APAC
Prices of ethylene carbonate showed a bearish trend in the second quarter of 2023. In the Chinese market, the decline in domestic prices was mainly due to a decline in the demand from the EV sector in the international market. US Inflation Act 2022 has led to a decrease in exports from China to North America, and the prices of ethylene carbonate have been bearish since August 2022, and the price of ethylene carbonate has declined by 42.38 percent. Domestic demand for EVs improved in the second quarter, which led to price stabilization in the latter half of the second quarter. In the month of June, the prices stabilized as imports from South Korea and Japan helped in price stabilization. Market inquiries reveal that operational capacity improved and inventory stocks were adequate by the end of June 2023. In the Indian market, a similar trend was observed. India is a net importer of ethylene carbonate from China, the United States, South Korea etc. The supply chain remained resilient, and the demand from the EV sector remained stable. Prices of Ethylene Carbonate Battery grade FOB Qingdao were settled at USD 779/MT in the month of June 2023.
Europe
Prices of ethylene carbonate showed a floating trend in the second quarter of 2023. In the month of April, the increase was due to a positive cost-push of the feedstock ethylene oxide. In Q1, the demand from the downstream value chains remained dovish because of the supply disruptions caused by the Russia-Ukraine war. This trend continued in the month of April. In the months of May and June, the price of Ethylene Carbonate showed moderation and turned neutral due to increased imports from East Asia and North America. The demand from the downstream EV value chain remained 'stable.' The eurozone composite purchase managers' index has fallen to a score of 48.9 in July from 49.9 in June, according to the flash estimate. The lower reading means activity among surveyed firms contracted at an even steeper pace than in the prior monthly period. Both the service and manufacturing sectors registered lower PMI readings. Chemical Industries' demand showed a declining trend due to lower margins of profitability and operational capacity utilization. Demand from EV and battery sector showed a bullish trend and low inventory stocks. Demand is poised to remain stable as the EU tackles the technical recession in Q3, some analysts state.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the market of Ethylene Carbonate observed a bearish pricing trend in the US domestic market. In January, the market prices dropped amidst restricted market activities in the Asian region, and the regional market competition dropped amongst the downstream EV manufacturers. In February, the prices tumbled further amidst a wait-and-see consumer market attitude in the region as the Asian market participants reported a drop in electric vehicle sales and built-up inventories, and the downstream consumers were reluctant to place new orders. Whereas in March, due to a decline in new orders and slipping export sales, the market prices of Ethylene Carbonate slipped down in the region.
APAC
In the first quarter of 2023, the market prices of Ethylene Carbonate showcased a mixed pricing trend in the Chinese domestic region. Throughout Q1, the cost support from the feedstock Ethylene oxide remained weaker in the region. In the first month, the prices surged amid increased demand from the downstream battery manufacturing industry and a sufficient supply of the product in the region. Whereas, in February, the prices plunged due to drop-in operating rates at CAM manufacturing facilities. The downstream market players were extremely cautious about the new purchases of electrolytes after EV sales dropped in the region. In March, the prices declined further amid built-up inventories of the product and suppressed demand. The downstream consumers were reluctant for new purchases, and wait-and-see market sentiments prevailed in the region.
Europe
In the first quarter of 2023, the overall market prices of Ethylene Carbonate rode the downward trajectory in the European domestic market. In January 2023, the offered quotes plunged, moving identically to the Asian market. In addition, the rising inflation and energy prices kept the operating rates restricted in the region. In February, the prices dropped due to weaker demand from the Asian market players leading to restricted market activities and uncertainties regarding the economy. In March, the prices dropped further due to lacking market competitiveness from the Asian markets and the wait-and-see consumer market sentiments across the globe. Also, the manufacturing PMI dropped in the European region due to lower input costs and a weaker demand outlook.
For the Quarter Ending December 2022
North America
Overall the Ethylene Carbonate (EC) market in the North American region has observed mixed sentiments throughout the fourth quarter of 2022. This development has been majorly attributed to the fluctuation and uncertainties in the cost support from the upstream Naphtha in the domestic market. At the same time, the slowdown in the APAC EV market has also impacted the regional EV market across the North American region. In addition, the participation of the European players has considerably hindered the availability by pressurizing the value chain. However, the operating rates at the facilities were lowered amidst the disruptions related to extreme weather conditions. As a ripple effect, the DDP USGC discussions for Ethylene Carbonate (EC) were assessed at USD 1038 per tonne in December 2022.
Asia Pacific
Overall, the Ethylene Carbonate (EC) market in the Asian Pacific region observed a persistent bearish trajectory throughout the fourth quarter of 2022. This development has been majorly attributed to the curtailment of consumption as an Electrolyte from the downstream EV industries. That has further coupled with the weakened cost support from the feedstocks, as both the prominent economies of India and China are importing Crude Oil from Russia. In response, the impact of inflation and hiked interest rates remained controlled, leaving the Ethylene Carbonate (EC) market to be dependent on the supply-demand dynamics. Whereas in China, EV sales dropped by considerable margins as compared to the last quarter of 2023, furthermore revocation of the EV subsidy made the battery manufacturers cautious about the excess buying streak. As a ripple effect, the FOB Qingdao discussions for the Ethylene Carbonate (EC) market in December 2022 were assessed at USD 864 per tonne.
Europe
In the fourth quarter of 2022, the Ethylene Carbonate (EC) market in Europe has observed mixed sentiments throughout the term. As per the market experts, this development has been majorly attributed to the rebound in trading practices from the overseas market after the market activities resumed by the end of the third quarter. However, due to the high inflation and interest rates, the market has become more conservative, and market activities have dampened. In response, the market lacked competitiveness, and the FD Antwerp discussions for Ethylene Carbonate (EC) were assessed at USD 776 per tonne in December 2022.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the Ethylene Carbonate market in the North American region staggered upwards, even though the cost support from the feedstock has weakened on the backdrop of the plunge in the Crude Oil values in the International market. In addition, the cost support from the feedstock has further declined, and the prices of Ethylene Carbonate have consistently dropped despite the consistent offtakes from the downstream industries such as EVs, pharmaceuticals, and cosmetics & personal care industries that negated the impact of low-cost support from the feedstock.
Asia Pacific
Overall, the Propylene Carbonate or the electrolytes market, in general, has witnessed mixed sentiments in the Asia Pacific region, besides having diverse opinions differing based on sub-regions. The Southeast Asian market remained suppressed and saw a consistent downward trajectory in the offered quotations for Ethylene Carbonate. At the same time, the monthly average in China fluctuated upward in August as the energy cost soared and several regions witnessed power rationing. In September, the feedstock market dynamics and cost support dropped amidst the USD appreciation in the International market. Therefore, the FOB Qingdao discussions for Ethylene Carbonate were assessed at USD 1141 per tonne in September 2022.
Europe
The Ethylene Carbonate market in the European markets was bearish in the first half of the month, whereas the latter half remained stagnant. The economics and commercial activities remained subdued for the majority of terms amidst the summer holidays in the European markets. In addition, the market activities rebounded in September. In addition, the EUR depreciated against the USD. However, the domestic market is clouded with numerous uncertainties as inflation soared to historic highs that suppressed the market dynamics in the domestic market.
For the Quarter Ending June 2022
North America
The North American Ethylene Carbonate market observed a consistent upward trend due to the consistently rising cost support from the feedstock Ethylene Oxide. The retaliatory sanctions on Russia by the US resulted in global inflation and high-interest rates, besides curtailing to import the essential raw materials from Russia. Therefore, the producers were keen to source another alternative for essential raw materials from other means. The gyration in the upstream energy values further strengthens the producers' will to raise the offered quotations for Ethylene Carbonate in the US domestic market. As a ripple effect, the quotation for the Ethylene Carbonate gained by +4.65% during the second quarter.
Asia Pacific
During the second quarter of 2022, the Ethylene Carbonate market in the Asia Pacific region observes a persistent plunge in the market dynamics. Despite the higher cost support from the critical feedstocks amidst the gyration in the upstream energy cycle due to the geopolitical conflict in the eastern European region, the market remains bearish. In addition, the COVID resurgence in China directly impacted the cumulative demand outlook of Ethylene Carbonate in the Chinese domestic market, and the inquiries from the EV battery market plunged drastically as the disruption in the supply chain led to reducing or halted production of EVs across China. As a ripple effect, the discussion for the FOB NE Asia offers persistently falls.
Europe
In the second quarter of 2022, the European Electrolytes market observes bullish sentiments amidst the higher cost support from the upstream. This development is caused by the gyration in the feedstock energy value chain after the retaliatory sanctions imposed on Russia. In response, the European players are not keening toward the Russian supplies from the black sea but instead seeking an alternative to source Ethylene Carbonate from other means. Volkswagen, a major European automobile manufacturer, has decided to source essential raw materials from a China-based LEAD to support the production of its 20 GWh facilities to manufacture EV batteries with an investment of EUR 20 Billion. As a ripple effect, the producer's quotation for the Ethylene Carbonate obtained an upward trend in the offered prices.
For the Quarter Ending March 2022
North America
In the first quarter of 2022, the prices of Ethylene carbonate increased in the North American region. The upstream Ethylene Oxide prices rose throughout Q1 due to high feedstock Naphtha values in the North American market. High demand for downstream EV vehicles and their consistent offtakes in the US market during the first quarter of 2022 escalated the Ethylene Carbonate prices. Also, in the lubricating industries, demand remained stable. However, inconsistency in supply, especially in the second half of Quarter 1, due to supply constraints amid the global supply chain disruption, boosted the values of Ethylene Carbonate in North America. The FOB Gulf discussions for Ethylene Carbonate settled on USD 2712 per tonne on March 2022.
Asia Pacific
The price trend of Ethylene Carbonate fluctuated in the Asian Market in the 1st quarter of 2022. The feed Ethylene oxide values increased in Asia during Q1, especially in H2 of the quarter. In the Chinese market, the prices decreased in H1 but rebounded after mid-quarter amid the global supply chain disruptions. However, in India, prices increased continuously throughout Q1. In March, increased demand in the automotive sector due to strong downstream demand from the batteries and lubricants industry rose Ethylene Carbonate values significantly. The 99% Ethylene Carbonate discussions settled on USD 2526 per tonne on FOB basis at Qingdao, China.
Europe
Ethylene Carbonate prices rose in the European market during the 1st quarter of 2022. Feedstock Ethylene Oxide values increased consistently throughout Q1, and high energy values in the region escalated the production costs of Ethylene Carbonate. Stable demand for electric vehicles in the Automotives sector rose demand for Ethylene Carbonate in the Lithium-ion battery manufacturing industries, especially in March with continuous offtakes. In March, the values rose more significantly with uncertain supplies of raw materials in the second half of the quarter amid the supply chain constraints due to the war between Ukraine and Russia in the East - European region.
For the Quarter Ending December 2021
North America
During the fourth quarter of 2021, North America’s Ethylene Carbonate market sentiments remained buoyed throughout the quarter taking cues from the adequate support from the downstream inquiries from Lithium-ion battery industries. Despite the lower cost support from the upstream Ethylene tye offers for Ethylene Carbonate in the US domestic market observed significant gains from the downstream EV industries. As an end-user application of electrolytes provided ample support to the Ethylene Carbonate in the US domestic market. In repercussion, the offers for Ethylene Carbonate in the US persistently staggered upwards in the fourth quarter of 2021.
Asia Pacific
The Ethylene Carbonate market in the Asia Pacific witnessed substantial gains during the fourth quarter of 2021, and the growth factors were driven by rising demand from the downstream industries. As being a valuable electrolyte for EV batteries, it's been observed that the prices of battery raw materials have increased by a significant percentage since the second half of the fourth quarter amidst the supply glut. Whereas, the imposition of strict environmental protection norms by the Chinese authorities added an inflationary pressure in the Asia Electrolytes market followed by a robust demand outlook. As a ripple effect, the FOB Qingdao (China) discussions for Ethylene Carbonate 99% soared to USD 3200 per tonne, during the quarter ending.
Europe
In the fourth quarter of 2021, the Ethylene Carbonate sentiments in the European domestic market remained strengthened throughout the quarter, taking cues from the supply glut against the demand outstripping the supply capabilities. The energy crisis in Europe prevailed its impact in the operational loads at the manufacturing facilities coupled with the rebound in the Crude oil offers which ultimately hiked the operational cost for Ethylene Carbonate in the European domestic market. As a ripple effect, the offers for witnessed persistent growth in Q4 2021
For the Quarter Ending September 2021
North America
In North America, Ethylene Carbonate prices witnessed an upward trend during this quarter in the USA, due to steep rise in the feedstock prices backed by the volatility in the values of upstream crude oil. The demand for Ethylene Carbonate remained firm throughout the quarter driven by its prevalent consumption in the lithium-ion battery segment. Ida hurricane made landfall in Louisiana and in the Gulf Coast of USA which impacted the production rates as well as the supply chains as several manufacturers were compelled to shut down their production facilities ahead of the hurricane as a contingency plan. The situation consequently led to the constrained availability of the raw materials and hence contributed to inflation in the prices of Ethylene Carbonate in this quarter.
Asia
Asian markets of Ethylene Carbonate emulated the price trend of other regions such as North America in Q3 of 2021. Ethylene Carbonate prices attained tremendous gains during this timeframe backed by the improvement in the offtakes from the downstream sectors. In India, an exponential rise in the prices of Ethylene Carbonate was witnessed as a spillover effect of the global surge in its prices. In addition, a giant player of Ethylene Carbonate, Huntsman Corporation announced to expand its ULTRAPURE Ethylene Carbonate capacity in India due to the prominent surge in demand from the manufacturers of lithium-ion batteries. Furthermore, skyrocketing freight charges along with the shortage of shipping containers sent ripples to the prices of Ethylene Carbonate in this quarter. Thus, Ethylene Carbonate Ex-Mumbai prices rose from USD 1367.63 per MT to USD 1518.55 per MT from July to September.
Europe
In Europe, Ethylene Carbonate market experienced an upward rally backed by the limited availability of feedstock Ethylene Oxide across the region amidst strong demand from the downstream manufacturers. In addition, constantly soaring upstream Ethylene values followed by lower imports from the USA as an impact of Ida hurricane along with the low production rates due to energy crisis in Europe contributed to the inflation in the prices of EC throughout the quarter. Moreover, spiraling freight costs and critical shortage of shipping containers further influenced the prices of Ethylene Carbonate in the region during this timeframe.
For the Quarter Ending June 2021
North America
Ethylene Carbonate price showcased strong sentiments during this quarter in USA, due to substantial demand from downstream electric batteries. Consequently, prices of feedstock Ethylene Oxide rose steeply due to shortage during the meantime, which ultimately affected the price of Ethylene Carbonate in the country. Under new administration of Joe Biden, electric vehicles segment got a boost, as the new policies regarding emission from combustion engine gave opportunities to electrical vehicle manufacturers to expand their business. Meanwhile, many battery manufacturers planned to expand their production to counter the future demand in the country. Huntsman announced the expansion of its ultrapure Ethylene Carbonate manufacturing capacity by the mid of 2023.
Asia
Prices of Ethylene Carbonate remained stable across the APAC region during Q2 2021. While the demand from downstream sectors in India narrowed as the resurgence of pandemic halted the overall consumption in the country during May and June. However, due to spill over effect of global surge in prices of Ethylene Carbonate despite of the stable demand outlook in the country, prices of Ethylene Carbonate maintained its overall firmness in India. Despite of decline in demand during the month of June, prices were counterbalanced by halted trading activities across the major ports in India. In China, demand for Ethylene Carbonate remained firm from domestic Lithium-Ion batteries segment. Therefore, prices were accessed as USD 1335/MT in India and USD 1395/MT in China in the first week of June.
Europe
Plant turnarounds in European countries like Germany, Belgium and Netherland impacted the overall availability of feedstock Ethylene Oxide across the region. The shortage led to significant rise in the price of Ethylene Carbonate during this timeframe across Europe. In addition, upstream Ethylene price in Europe also rose, as imports from USA also remained on low pace. Therefore, prices of Ethylene Carbonate remained firm throughout the quarter taking support from firm demand from batteries manufacturers and strong feedstock values.
For the Quarter Ending March 2021
North America
Despite its wide applications as an electrolyte, the demand of Ethylene Carbonate (EC) from the downstream segments remained in a narrow range during Q1 2021. However, the prices showed improvement, backed by firmer feedstocks and lower regional output due to shortage of raw materials. After the winter storm in the gulf of USA, in the second half of the quarter, more than 65% of the feedstock EO (Ethylene Oxide) production was halted in the region and translating these raw material price gains, Ethylene Carbonate prices surged by double digits during the quarter.
Asia
Prices of Ethylene Carbonate rose globally due to the shortage of feedstock materials and inflation in shipping rates during the quarter. Similarly, in the Asian market, prices of EC gained by a significant percentage. Demand for EC and EO slumped in the Chinese market during the Lunar New Year holidays, which later rebounded sharply in the last week of February. Shortage of upstream Ethylene, carrying high value in the global market also impacted the prices of downstream EC.
Europe
Winter storm and unplanned turnarounds at several plants in the US gulf coast affected the availability of raw materials in the European countries. As the exports readily reduced and demand from Asia was diverted from USA and concentrated over Europe, the regional prices of Ethylene Carbonate rose effectively during this period and remained volatile with the upstream supply. This led the prices of EC to gain by a significant per cent, although the domestic demand remained comparatively lower than the export potential.
For the Quarter Ending December 2020
North America
North America suffered shortage of several upstream chemicals including Ethylene. The shortage came due to disrupted operations at several plants across the gulf coast as effect of multiple hurricanes across the region. The demand for EC remained stable and hence the prices didn’t fluctuate much. The price of EC hovered around 1450 USD/tonne in USA. Meanwhile, the demand of feedstock EO was increasing, that significantly uplifted its prices.
Asia
The demand of Ethylene Carbonate remained low to moderate during Q4 2020 across the APAC region. Post COVID-19 recovery, industrial and domestic activities gained speed in most of the Asian countries. In China, Li-ion batteries market also started coming on track and demand for Ethylene Carbonate started rising though the prices remained stable at USD 1220/tonne during final quarter. In addition, Japan had a great boost of more than 10% in the prices of Ethylene Carbonate from November to December 2020 as an effect of planned shutdown of Eneos’ major upstream ethylene plant of capacity 540,000 tonne/year. Meanwhile, India faced slight boost of 2.7% in prices during the same period.
Europe
The second wave of COVID-19 infections in Europe disrupted the supply of several industrial as well as imported chemicals which created the shortage of feedstock chemicals, thereby raising Ethylene Carbonate prices. Exxonmobil’s Ethylene manufacturing unit in Scotland caught fire in October, that created forced shutdown for several days. This created more shortage of upstream Ethylene, required for the production of downstream Ethylene Oxide and Ethylene Carbonate. Meanwhile, European commission declared that they injected a huge investment for the production of lithium-ion batteries in Europe. This investment is aimed at placing Europe in second no. in battery manufacturing by 2024. EC is majorly used in Li-ion batteries and hence the demand is anticipated to rise.
