For the Quarter Ending September 2021
North America
In Q3 2021, Ethylene Dichloride (EDC) market observed an upward pricing trend in the North American region. The upsurge in the values of Ethylene Dichloride was supported by its constraint availability amidst sturdy demand from the downstream Vinyl Chloride and other segments. Volatility in the prices of upstream Ethylene also sent ripples to the EDC prices during this time frame. The industrial infrastructure in the US Gulf coast remained offline because of the arrival of the Ida hurricane that unbalanced the demand and the supply of EDC during the timeframe. For instance, force majeure was declared by Westside Chemical on its two PVC production plants in Louisiana as a repercussion to Ida hurricane.
Asia
In Q3 2021, values of Ethylene Dichloride (EDC) witnessed an exponential surge in the Asian market backed by the soaring feedstock prices. Firm demand amidst limited availability of Ethylene Dichloride in this quarter further fumed its values across the region. In India, prices of EDC soared during this quarter backed by the surging values of feedstock Ethylene and increasing demand from downstream Vinyl Chloride Monomer (VCM) manufacturers. Moreover, it was reported by the traders that several EDC facilities in the region went offline due to the seasonal maintenance that consequently increased the values of EDC. In addition, extreme rise in the freight costs and limited supply of containers further contributed to the inflation in the pricing trend of EDC during this timeframe. Hence, Ex-Kandla prices spiked from USD 719.66/MT to USD 904.64/MT in July to September timeframe.
Europe
In Europe, a marginal rise in the prices of EDC was witnessed in Q3 backed by the surge in the prices of upstream Ethylene and lower imports from the USA. The demand for EDC remained modest from the downstream Vinyl Chloride Monomer and Poly Vinyl Chloride segment backed by the curtailment in the production rates by several manufacturers due to the energy crisis in this quarter across the region. Besides, an exorbitant hike in the shipping charges and the critical shortage of containers further contributed to the spike in the pricing trend of EDC. FD-Hamburg Ethylene Dichloride prices settled at USD 745/MT in September witnessed a rise of USD 40/MT since July.
For the Quarter Ending June 2021
North America
Repercussions of freezing fallout in the Gulf of USA in mid-February, continued to disturb the market sentiments in this quarter as well. Due to the disrupted production activities in feedstock plants, prices of several downstream products including Ethylene Dichloride increased effectively, which later declined in June with improvement in supply activities. However, following the revival in economic activities, demand for Ethylene Dichloride remained firm throughout the quarter from downstream Poly Vinyl Chloride (PVC) sector, which also supported its prices in USA. Therefore, a consistent rise in prices of Ethylene Dichloride was observed, which settled at USD 660/MT in the second half of May in Texas.
Asia
Overall demand for Ethylene Dichloride remained modest in APAC region, while the prices rose effectively in China due to soaring feedstock prices. In China, prices of Ethylene Dichloride rose effectively during the quarter, supported by fuming feedstock Ethylene prices amid firm demand and inadequate availability. While in the Indian market, demand for Ethylene Dichloride from downstream Vinyl Chloride Monomer (VCM) manufacturers remained muted, due to resurgence of pandemic in the country. Sudden implementation of movement restriction reduced the consumption of PVC in the country, which eventually led to a decline in demand for upstream Ethylene Dichloride. Thus, prices dwindled in the month of May and reached USD 684/MT in India.
Europe
An astonishing rise in prices of Ethylene Dichloride was observed in the European region during this quarter. The demand fundamentals showcased sturdy growth from the downstream VCM and PVC manufacturers, backed by the improvement in economic activities than the previous quarter. Besides, critical shortage of feedstock Ethylene from USA also supported the steep rise in its prices. In the meantime, traders expected some cargoes from other regions like Asia and Middle East to counter this steep rise in these commodities.
For the Quarter Ending March 2021
North America
Stable demand amidst acute shortage, led the EDC prices to follow upward trajectory across the region during this quarter. Winter storm across USA gulf coast disrupted the production activity of several Ethylene Dichloride (EDC) manufacturing units which caused raw material shortage for the production of downstream chemicals like VCM (Vinyl Chloride Monomer) and PVC (Polyvinyl Chloride). Several plants including that of OxyChem with the capacity 680 KTPA EDC and Olin Corp. with EDC capacity 748 KTPA etc. remained idled during this time frame due to this climate calamity. Hence the prices rose effectively high by more than 30% and settled around USD 550/MT by the end of March.
Asia
The Asian market had fair demand for Ethylene Dichloride (EDC) but the supply varied country by country, hence the prices too fluctuated with demand supply fundamentals. In the Chinese market, prices showed significant variations during a week, with FOB offers hovering around USD 780/MT during mid-February. While in the Indian market, prices showed consistent growth, as the demand remained firm from the domestic market but reduction in imports of raw materials from USA and Europe created product shortage. Price of EDC rose by 44.6% since January to settled at USD 735.7/MT during March.
Europe
Europe encountered significant shortage of feedstock Ethylene, which was having high demand from other segments like Polyethylene, during the first quarter. Imports from USA were reduced under rare climatic conditions, which affected the availability of raw materials (like Ethylene) and EDC in the region. These factors lead to a sharp rise in the price of EDC across the region. In addition, imports of EDC from the Middle East were also heard to be halted due to force majeure at a major producing plant worth capacity of 890 KTPA of EDC.
For the Quarter Ending September 2020
Asia
PVC prices in the Asian market rose amid tightened supply due to production outages across the US battered by a series of storms and hurricanes. Buoyant demand forced Asian PVC producers to keep more volumes of EDC for captive use. As a result, EDC supply within Asia remained tightened with offers largely raised above USD 230 per tonne CFR Southeast Asia. Buyers, particularly from Southeast Asia, saw a significant recovery in Q3 as coronavirus-related restrictions were largely eased and downstream PVC demand from construction and manufacturing activity was seen regaining the lost momentum.
Europe
The European Ethylene Dichloride (EDC) demand rose as the consumption by the downstream PVC manufacturers rose on the back of rebounding construction demand which had tumbled significantly in Q2 because of the dented economics. Lack of export volumes as inflows from the US remained largely nil triggered a sharp surge in the regional pricing. Traders maintained the margins low as the demand is yet to reach the pre-pandemic levels amid fears of second wave triggering fresh lockdowns in several states. FOB NWE EDC prices were assessed around USD 350 per MT levels, extending significant gains observed on Q-o-Q basis.
North America
The American EDC market remained highly dynamic throughout Q3 2020 with regional producers observing a sharp pick-up in the buying behavior in response to the pent-up PVC demand, especially from the Asian markets. Power outages due to Hurricane Laura delayed start-ups of several Chlor-Alkali units in Lake Charles causing tightening in both domestic and export supply. Olin, the world's largest Chlor-Alkali producer, was heard temporarily idling Chlor-Alkali plants to manage costs and inventories. Formosa Plastics USA declared force majeure on its PVC manufacturing unit in August after an upstream chlor-alkali unit remained shut for longer than planned, causing potential shortage of EDC stocks. EDC Prices took off from the ground levels after witnessing a historic plunge (about 70%) during Q2 2020.
