For the Quarter Ending March 2025
North America
In the first quarter of 2025, the U.S. Ethylene Carbonate (EC) market, which depends significantly on imports from China, experienced a modest decline in pricing due to ongoing global oversupply and cautious buying behavior downstream. The price weakening observed in January and February stemmed mainly from restrained restocking by battery and electrolyte manufacturers and the broad availability of material across global supply chains. Although March brought minor stabilization, overall market sentiment remained cautious amid limited procurement and ongoing logistical concerns.
On the supply front, Chinese EC exporters maintained steady production levels. Falling upstream input costs added downward pressure on EC manufacturing expenses, influencing export values. In the U.S., import levels reflected conservative purchasing trends and varied buyer sentiment. Weather disruptions in major lithium-producing areas and delays in several international projects helped slightly ease supply pressure but did not substantially affect EC availability.
Demand-wise, the domestic battery sector gave mixed signals. Electric vehicle sales increased by 20% year-over-year in February, buoyed by federal incentives and broader model availability. Nevertheless, uncertainty surrounding policy under President Trump—particularly potential changes to EV tax incentives and emissions standards—kept sentiment restrained.
APAC
In the first quarter of 2025, the Ethylene Carbonate (EC) market in China experienced fluctuating prices driven by weak demand and cautious procurement behavior. Starting January, prices saw a slight decline due to low consumer demand and year-end inventory adjustments. This was coupled with stable upstream costs, leading to a balanced supply-demand situation. As the month progressed, demand for electrolytes from battery manufacturers remained moderate, and the overall growth rate of end-use markets slowed.
However, prices saw a slight increase in February due to external pressures, including upstream cost pressures and logistics challenges, but weak post-holiday demand from battery manufacturers kept the market subdued. The electrolyte production rate in China also declined, with a noticeable dip in manufacturing output as producers adjusted to reduced demand and inventory levels. The automotive sector showed mixed signals, with a decrease in sales during the Chinese New Year period, though there was an increase in year-over-year sales of new energy vehicles (NEVs).
Throughout the quarter, the market remained cautious, with demand from battery manufacturers continuing to remain low. However, by March, Ethylene Carbonate prices showed further declines, largely due to slower recovery in downstream markets and low demand for electrolytes. Despite this, the supply chain remained stable, with manufacturers aligning production to actual demand.
Europe
During the first quarter of 2025, the Ethylene Carbonate (EC) market in the Netherlands remained muted, impacted by fragile demand fundamentals, conservative buying patterns, and ongoing shifts in battery chemistry preferences across Europe. The start of January was marked by a largely steady domestic environment, with minimal movement in supply or raw material cost dynamics. Despite a moderately positive downstream outlook, procurement activity stayed low amid year-end stock adjustments and broader economic hesitation.
Throughout the quarter, EC imports into the Netherlands remained modest. Slower activity from major exporting countries echoed the general downturn in global demand. Pressure on battery manufacturing demand persisted, driven by an oversupplied lithium market and slower EV momentum, particularly following the Chinese New Year and amid elevated inventory levels. Additionally, a growing preference for more affordable lithium-iron-phosphate (LFP) batteries over nickel-manganese-cobalt (NMC) variants contributed to evolving procurement behavior.
On the manufacturing side, electrolyte production rates fell, mirroring decreased offtake and reserved buying strategies in downstream segments. Geopolitical tensions, shifting international trade policies, and concerns over new tariff regimes added further uncertainty. Despite some policy support and infrastructure initiatives within parts of Europe, the quarter closed on a soft note, with no significant resurgence in EC market activity.
For the Quarter Ending December 2024
North America
The North American Ethylene Carbonate market in Q4 2024 exhibited a mixed price trajectory, largely influenced by the dynamics of the global electrolyte market. Initially, the quarter witnessed relative price stability amidst an oversupplied electrolyte market and reduced consumer inquiries.
This oversupply, driven by factors such as increased production from major players, exerted significant downward pressure on Ethylene Carbonate prices. While demand from the EV sector, particularly in the US, showed promising growth, it was insufficient to offset the impact of oversupply. Towards the end of the quarter, prices began to decline further, primarily due to cautious purchasing behavior from battery manufacturers and EV makers.
This cautious approach was influenced by factors such as tightening regulations in key markets and concerns about the overall economic outlook. Despite these challenges, the North American Ethylene Carbonate market demonstrated some resilience. The growing demand for EVs in the region, albeit at a slower pace compared to other markets, continued to support the market. However, the overall market sentiment remained subdued, with concerns about oversupply and potential price volatility persisting.
APAC
The APAC Ethylene Carbonate market in Q4 2024 presented a dynamic picture, characterized by both upward and downward price movements. The quarter commenced with a bullish trend, driven by strong demand from downstream material plants for pre-holiday inventory buildup. This surge in demand, coupled with cost support from the upstream market, led to a notable increase in prices. However, this upward trajectory was gradually tempered by factors such as increased inventory levels and subdued consumer demand towards the end of the quarter. Year-end destocking activities further contributed to price declines. Despite these downward pressures, the market remained underpinned by the robust growth of the electric vehicle (EV) sector. The record-breaking EV sales in China throughout the quarter provided significant support to the Ethylene Carbonate market, as it is a crucial component in the production of lithium-ion batteries. While challenges such as fluctuations in raw material prices, particularly LiPF6, were observed, the overall market demonstrated resilience, reflecting the strong long-term growth prospects of the EV industry in the region.
Europe
The European Ethylene Carbonate market in Q4 2024 exhibited a mixed price trajectory. The quarter commenced with a bearish trend, primarily driven by a significant influx of cheaper imports from Asia. Declining freight charges and increased container availability further exacerbated the downward pressure on prices. While Chinese producers-initiated efforts to curb output, these measures were proven insufficient to stabilize the electrolyte market. A notable shift occurred mid-quarter, with prices experiencing a gradual increase. This upward trend was primarily attributed to rising production costs in major exporting nations, particularly driven by increased Ethylene Oxide prices and higher demand from the domestic market. However, European demand remained relatively subdued, with limited impact on the overall market dynamics. Towards the end of the quarter, prices experienced further appreciation due to the arrival of higher-priced imports from China. Rising demand for electrolytes from Chinese battery cell manufacturers, coupled with increased production costs, significantly impacted export prices. Despite this upward pressure, European demand remained weak, with no significant supply shortages observed in the region.
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.
