For the Quarter Ending September 2025
North America
• In the USA, the Ethylene Dichloride Price Index fell by 16.75% quarter-over-quarter, driven by weak PVC demand.
• The average Ethylene Dichloride price for the quarter was approximately USD 106.00/MT, based on USGC deliveries.
• Ethylene Dichloride Spot Price volatility narrowed as the Price Index softened due to balanced supply and modest exports.
• Ethylene Dichloride Production Cost Trend eased with lower ethylene feedstock costs, supporting margins despite weak offtake.
• Ethylene Dichloride Demand Outlook remains muted; Price Forecast indicates range-bound movement until PVC markets show durable recovery.
• Ethylene Dichloride Price Index weakness reflected inventory accumulation and constrained export liftings, moderating spot market tightness.
• Merchant supply withdrawals and selective curbs tightened prompt availability, supporting regional Price Index firmness in September.
Why did the price of Ethylene Dichloride change in September 2025 in North America?
• Weak PVC demand reduced EDC offtake, causing inventories to rise and the Price Index to decline.
• Lower ethylene costs eased production expenses, but merchant pullbacks and soft exports pressured spot availability.
• Logistics constraints and seasonal freight pressure increased delivered costs while operating rates kept supply largely balanced.
APAC
• In Japan, the Ethylene Dichloride Price Index fell by 11.79% quarter-over-quarter in Q3 2025, reflecting weaker PVC demand.
• The average Ethylene Dichloride price for the quarter was approximately USD 192.00/MT CFR Nagoya; sourcing stability limited volatility.
• Ethylene Dichloride Spot Price stayed volatile amid balanced stocks; the Price Index reflected intermittent importer buying and restocking.
• Ethylene Dichloride Production Cost Trend showed mild upward pressure from ethylene feedstock costs, yet Price Index remained subdued.
• Ethylene Dichloride Demand Outlook is cautiously optimistic given construction support, while Price Forecast anticipates modest seasonal recovery.
• Rising coastal inventories and steady import flows pressured the Price Index, constraining the Ethylene Dichloride Price Forecast.
• Planned maintenance at regional producers briefly tightened flows, but alternative sourcing kept the Ethylene Dichloride Price Index largely range-bound.
Why did the price of Ethylene Dichloride change in September 2025 in APAC?
• High imports from South Korea and China increased supply, weighing on Ethylene Dichloride Price Index.
• Soft downstream PVC offtake from automotive weakness reduced demand, limiting Ethylene Dichloride Spot Price upside.
• Slightly firmer ethylene feedstock costs and sustained logistical costs lifted production cost trend, capping downside.
Europe
• In Spain, the Ethylene Dichloride Price Index fell by 15.8% quarter-over-quarter, reflecting oversupply and weak PVC demand.
• The average Ethylene Dichloride price for the quarter was approximately USD 163.33/MT, reflecting subdued spot activity.
• Ethylene Dichloride Spot Price weakness mirrored regional PVC softness despite intermittent feedstock-driven tightening weeks and constrained exports.
• Ethylene Dichloride Price Forecast anticipates modest recovery if PVC demand strengthens and producers curtail output to rebalance stocks.
• Ethylene Dichloride Production Cost Trend eased as ethylene feedstock prices declined, supporting margins despite weak downstream offtake.
• Ethylene Dichloride Demand Outlook remains muted with construction weakness offset partially by resilient automotive and EV related PVC demand.
• Ethylene Dichloride Price Index volatility reflected elevated inventories and limited export opportunities constraining merchant market liquidity.
• Major producers maintained steady operating rates while selective curtailments and logistical disruptions intermittently tightened local availability.
Why did the price of Ethylene Dichloride change in September 2025 in Europe?
• Persistent oversupply and elevated inventories pressured prices, as producers ran at steady rates and spot availability increased.
• Weak PVC demand from construction and subdued commercial activity reduced offtake, driving sellers to offer discounts.
• Lower ethylene costs eased production expenses, but limited export demand and logistical factors failed to absorb excess supply.
MEA
• In Saudi Arabia, the Ethylene Dichloride Price Index fell by 16.1% quarter-over-quarter, reflecting weak PVC offtake and inventories.
• The average Ethylene Dichloride price for the quarter was approximately USD 189.33/MT, observed across Saudi ex-Riyadh deliveries.
• Ethylene Dichloride Spot Price remained range-bound as domestic plant run-rates matched moderate PVC demand and steady inventories.
• Ethylene Dichloride Demand Outlook shows steady consumption driven by construction and automotive, offsetting weak Asian export interest.
• Ethylene Dichloride Production Cost Trend softened as lower ethylene feedstock prices eased producer margins and supported rates.
• Ethylene Dichloride Price Forecast indicates limited near-term upside absent export demand recovery or significant inventory drawdowns internationally.
• Ethylene Dichloride Price Index movement influenced by elevated stocks, restrained exports, and operations at Saudi producers.
Why did the price of Ethylene Dichloride change in September 2025 in MEA?
• Domestic PVC offtake softened, reducing merchant purchases despite steady plant operating rates and routine export flows.
• Ethylene feedstock prices eased, lowering production costs and limiting upward pressure on EDC Price Index margins.
• Elevated inventories and weak Asian export demand combined with occasional logistical risk increased war-risk freight premiums.
South America
• In Brazil, the Ethylene Dichloride Price Index fell by 8.76% quarter-over-quarter, reflecting weak downstream demand and abundant imports.
• The average Ethylene Dichloride price for the quarter was approximately USD 142.33/MT, reflecting mixed sectoral demand.
• Ethylene Dichloride Spot Price remained supported by steady U.S. exports and Santos port congestion tightening availability.
• Ethylene Dichloride Price Forecast indicates modest volatility with balanced supply and uneven downstream pull moderating upside.
• Ethylene Dichloride Production Cost Trend reflected stable feedstock ethylene and variable freight, constraining significant producer cost pressures.
• Ethylene Dichloride Demand Outlook is mixed as robust automotive PVC demand offsets weak construction and cautious converter procurement.
• Ethylene Dichloride Price Index movements linked to rising port inventories and export competition from U.S. Gulf shipments.
Why did the price of Ethylene Dichloride change in September 2025 in South America?
• Consistent U.S. export availability and steady production increased import inflows, pressuring local EDC supply balances.
• Weak construction PVC demand and cautious converter purchasing reduced domestic offtake, weighing on September price dynamics.
• Feedstock and logistics costs softened, while currency moves and export competition influenced landed import parity values.
For the Quarter Ending June 2025
North America
• The EDC Spot Price in the U.S. dropped significantly by 32.5% quarter-on-quarter, settling at USD 94/MT FOB USGC by the end of June 2025. The drastic fall in the Price Index was largely driven by persistent oversupply, weak downstream demand, and intensified global competition.
• Why did the Price Index change in July 2025?
The Price Index likely continued its downward trajectory in early July due to weak global PVC demand and elevated inventory levels across the supply chain. Without notable production cuts or demand recovery, prices are expected to remain soft.
• Despite intermittent tightness in chlorine feedstock supply, overall EDC production costs remained stable. However, producers struggled with negative margins as product pricing declined faster than input cost reductions. Rising logistics and energy components also pressured the EDC Production Cost Trend.
• Inventory levels remained high throughout the quarter as producers ran at consistent rates, while sluggish demand from both domestic and export markets failed to absorb available supply.
• While some export support came from markets like India, Southeast Asia, and Europe, it was insufficient to balance domestic oversupply. Increased cargoes from Asia and the Middle East intensified pricing pressure on U.S. exports.
• Spot prices declined progressively during the quarter—from USD 155/MT in late April to USD 85/MT by early June. The steady fall reflected limited spot transactions, poor procurement appetite, and ample supply availability.
• The EDC Demand Outlook remained weak in Q2 2025. Demand from the PVC sector—EDC's main downstream segment—remained subdued, with spot activity low and forward buying cautious.
• The EDC Forecast for Q3 2025 remains bearish unless substantial changes occur in the PVC sector or producers initiate significant supply cuts. With ample global supply and subdued demand, the outlook for price recovery remains limited.
APAC(China)
• The Price Index for Ethylene Dichloride (EDC) in China declined by 18.9% quarter-on-quarter, with spot prices falling to USD 234/MT FOB Shanghai by the end of June 2025.
• Why did the Price Index change in July 2025?
EDC prices in China likely remained stable in early July, following the flat pricing trend observed through late June, as both demand and supply appeared balanced. However, any further price movement will depend on shifts in PVC procurement and upstream ethylene costs.
• The EDC Spot Price in China dropped significantly over Q2, with sharper declines seen in April and May, followed by a plateau at USD 234/MT through June. Early quarter volatility was driven by sluggish PVC demand and abundant regional availability.
• Looking ahead, EDC prices in China may face sustained bearish pressure if demand from downstream PVC producers does not recover meaningfully. However, steady operations at integrated plants and moderated domestic production may cushion against sharp declines.
• Softening feedstock ethylene prices helped reduce EDC production costs, although stable chlorine values offset some of this decline. Local producers faced minimal cost volatility during the quarter.
• Downstream demand from PVC manufacturers remained lacklustre due to weak construction activity and cautious procurement amid uncertain economic conditions. Export interest also faltered, contributing to overall subdued market sentiment.
• No major supply disruptions occurred, and production remained stable throughout the quarter.
Europe (Germany)
• Price Index: The EDC Spot Price in Germany fell by 21.4% quarter-on-quarter, settling at USD 140/MT FD Hamburg by the end of June 2025. The sharp decline in the EDC Price Index reflects significant oversupply, persistently weak downstream demand, and bearish sentiment across the PVC value chain.
• Why did the Price Index change in July 2025?
The Price Index likely continued its downward trend in early July due to elevated inventory levels, stagnant construction activity, and weak PVC consumption, further suppressing EDC demand and pricing.
• EDC production costs were under pressure from weak vinyl chloride monomer (VCM) margins and steady upstream ethylene prices. Although input costs remained relatively stable, high inventory carrying costs and low operating margins weighed heavily on producers.
• Elevated inventory levels were reported across major German storage hubs due to continued high plant operating rates earlier in the quarter and weak offtake. This stock overhang further contributed to aggressive price competition among sellers.
• Despite falling demand, production remained high through Q2, leading to regional oversupply. Additional pressure came from competitively priced imports from the U.S. and Asia, which intensified the need for domestic sellers to adopt deep discounts.
• The EDC Demand Outlook in Germany remained muted. Sluggish PVC off-take from the construction sector curtailed consumption. Traders and buyers continued to adopt a cautious stance, limiting forward bookings.
• Export opportunities remained subdued, as global buyers explored cheaper alternatives and economic uncertainties delayed international procurement decisions.
• Looking ahead to Q3 2025, the EDC Price Forecast remains bearish unless European PVC demand experiences a sustained rebound.
For the Quarter Ending March 2025
North America
In Q1 2025, the U.S. Ethylene Dichloride (EDC) market witnessed a mixed yet overall downward price trend, closing the quarter at USD 165/MT FOB USGC, down from early January. The quarter began with stable pricing driven by balanced supply-demand dynamics and efficient inventory management despite economic uncertainty and seasonal construction slowdowns.
However, by late January, bearish market conditions took hold as frigid weather disrupted logistics and weakened procurement activity, leading to a price decline. February continued the downtrend, with falling feedstock ethylene prices, oversupply, and subdued PVC sector demand intensifying downward pressure. Export challenges, coupled with weak construction sector performance due to high mortgage rates and reduced builder confidence, further dampened market sentiment.
Despite stable demand from the automotive sector, the impact was limited amid overall market softness. March saw prices stabilize, supported by consistent PVC procurement and steady production rates. Although feedstock costs fluctuated, they did not significantly disrupt supply. The market-maintained equilibrium, but low export activity and subdued global demand capped any potential rebound. Looking ahead, unless there’s a notable recovery in construction or exports, EDC prices are expected to remain stable but bearish in the near term.
APAC
In Q1 2025, the Ethylene Dichloride (EDC) market in Japan experienced a gradual weakening in sentiment following a period of initial stability. Throughout January and most of February, the market remained steady, supported by consistent imports from South Korea and balanced supply-demand dynamics.
However, toward the latter part of the quarter, bearish trends began to emerge. This shift was largely influenced by subdued activity in the construction sector, where ongoing labour shortages, delayed infrastructure projects, and uncertainty surrounding potential interest rate hikes curbed demand for downstream PVC applications. While the automotive sector showed encouraging signs—particularly in February with rising vehicle sales—the rebound was not strong enough to offset the overall market softness. Moreover, ample supply across the region, particularly from South Korea, combined with cautious procurement strategies among Japanese buyers, led to reduced trading activity. Weak demand fundamentals, alongside adequate inventory levels, prompted market participants to adopt a conservative outlook.
Despite some support from sectors like automotive and infrastructure, the quarter ended with a softer market tone, and unless demand fundamentals improve or supply tightens, the EDC market in Japan is likely to remain under pressure in the near term.
Europe
In Q1 2025, the Ethylene Dichloride (EDC) market in Europe exhibited significant volatility, shaped by fluctuating demand and shifting supply conditions. The quarter began with relatively firm pricing, supported by steady production costs and balanced supply-demand dynamics.
However, this stability was short-lived, as bearish market fundamentals soon took hold. A persistent slowdown in the construction sector across key regions—particularly Germany, France, and the Netherlands—contributed to weak downstream demand for PVC, EDC’s primary application. Simultaneously, the automotive sector faced production challenges and declining sales, though rising electric vehicle registrations offered limited support. Oversupply remained a defining feature of the quarter, with steady domestic production and stable imports resulting in elevated inventory levels that outpaced consumption.
Despite temporary price increases driven by supply constraints and higher input costs in early March, these gains were quickly reversed as spot trading activity diminished and buyers adopted a cautious procurement strategy. The weakening of the upstream ethylene market further pressured EDC production costs, adding to the downward price momentum. Overall, Q1 closed with a soft market tone, driven by a mismatch between supply and demand, with future pricing trends likely hinging on a meaningful recovery in construction and automotive sectors or a tightening of regional supply.
For the Quarter Ending December 2024
North America
The North American EDC market in Q4 2024 experienced a quarter-on-quarter decline of 3.0%, driven by a combination of factors impacting both supply and demand. A primary contributor to this bearish trend was the continued weakness in the construction sector, which accounts for a significant portion of EDC's downstream consumption, particularly in PVC production. The subdued performance in the construction industry led to a weaker demand for PVC, which in turn reduced EDC consumption. Although demand for EDC remained steady in the production of vinyl chloride monomer (VCM), the lacklustre performance in PVC—especially from construction-related applications—kept market sentiment muted.
Macroeconomic factors, including fluctuating inflation rates, labour shortages, and rising interest rates, further exacerbated the uncertainty in the downstream markets. In particular, the construction sector faced challenges, with the Associated Builders and Contractors' (ABC) Construction Confidence Index showing declines in sales, profit margins, and staffing. This resulted in a backlog reduction, further dampening the outlook for PVC and EDC demand.
Meanwhile, the sustainability push in packaging had minimal effect on the PVC market, as innovations shifted towards other polymers like monolayer films. Overall, while supply remained stable, the ongoing economic uncertainties and a soft demand outlook for PVC contributed to a steady but weak market for EDC in North America during the quarter.
APAC
The EDC market in the APAC region for Q4 2024 witnessed a significant quarter-on-quarter decline of 11.4%, driven by multiple factors that contributed to a bearish market trend especially in Japan. Demand from key downstream sectors, particularly the construction and automotive industries, remained weak throughout the quarter. The construction sector faced labour shortages and economic challenges, which led to subdued demand for PVC, a major driver of EDC consumption. Similarly, the automotive sector saw slow demand growth, with vehicle sales declining, further contributing to the overall demand weakness. Additionally, inflationary pressures and the depreciation of the Japanese Yen exacerbated the market's difficulties. In the feedstock market, a decrease in crude oil prices lowered production costs, but this did little to offset the declining demand fundamentals. The manufacturing sector also showed signs of contraction, with weak export sales and reduced new orders. As a result, the market sentiment remained negative, and prices continued to decline throughout the quarter. Despite the slight uptick in PVC operating rates due to improved trading volumes, the overall market dynamics, including low demand from construction and PVC production, kept the market subdued. With ample supply and minimal changes in demand, the EDC market in the APAC region remained in a bearish state for the quarter.
Europe
In the European EDC market during Q4 2024, prices saw a modest quarter-on-quarter increase of 1%, driven by a combination of factors. The market showed signs of recovery, particularly from the automotive sector, which experienced improved demand, bolstered by a positive trend in vehicle sales in Q4. This contributed to the upward price movement, despite persistent challenges in the construction sector. The construction industry, while showing moderate signs of recovery, remained under pressure due to economic and political uncertainties, especially in major markets like Germany and France. This subdued demand in construction limited significant price increases. Additionally, the feedstock market saw fluctuations, with crude oil prices exhibiting a bullish trend, pushing EDC prices higher. However, ethylene prices declined amid the broader economic slowdown, putting downward pressure on production costs. Despite these mixed supply dynamics, the overall increase in EDC prices was supported by moderate recovery in downstream demand, particularly in the automotive sector. Market sentiment remained cautious but balanced, with a slight improvement in manufacturing activity and easing inflationary pressures in the construction sector. While the broader economic uncertainty persisted, the resilience of the automotive sector and rising feedstock costs contributed to the 1% price increase observed in the quarter.
South America
In Q4 of 2024, the Ethylene Dichloride (EDC) market in South America experienced a quarter-on-quarter decline of 2.7%, driven by fluctuating demand and supply dynamics. The drop in prices was primarily attributed to reduced demand from the PVC production sector, particularly from the construction industry, which faced economic challenges. Despite a steady recovery in Brazil’s construction sector, the demand for EDC remained moderate, preventing significant price increases. The automotive sector showed resilience, with slight growth in vehicle sales, but this did not lead to a substantial boost in EDC demand. On the supply side, stable feedstock ethylene prices and robust inventory management helped maintain a consistent supply chain, despite external factors such as fluctuating crude oil prices. While supply remained adequate, the overall market conditions were volatile, with weaker demand and slight recovery in downstream sectors. This imbalance between supply and demand contributed to the 2.7% price decline. Additionally, the decline in crude oil prices played a role in reducing production costs, further pressuring EDC prices downward. The overall market sentiment remained stable, with both the construction and automotive sectors showing modest growth, but the price trend was hindered by inconsistent demand and broader economic uncertainties across the region.
MEA
In Q4 of 2024, the Ethylene Dichloride (EDC) market in Saudi Arabia experienced a quarter-on-quarter decline of 3.7%, driven by a combination of subdued demand and balanced market dynamics. The decline in prices can be attributed to a moderation in demand from key downstream sectors such as PVC production. While the construction sector continued to grow, fuelled by Saudi Arabia's Vision 2030 and substantial investments in infrastructure, the demand for EDC remained steady rather than increasing significantly, limiting upward price momentum. Additionally, despite higher ethylene feedstock prices pushing production costs up, the ample supply of EDC, coupled with stable PVC prices, kept the market in balance, preventing major price hikes. The automotive sector, benefiting from government initiatives to boost local production, showed strong performance, but its moderate demand for EDC also contributed to the price stability. Furthermore, the consistent supply, robust production, and competition in the market led to price stability, despite rising production costs. The outlook for the construction and automotive sectors remained steady, with Saudi Arabia continuing to make significant strides in these industries, but the overall EDC market was affected by the weak demand from PVC production. This resulted in the slight decline observed in the fourth quarter, reflecting the balance of stable supply and modest demand growth.
