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.
