BASF Boosts Ethylene Oxide Capacity in Belgium, Providing Relief to Germany's Ethylene Carbonate Prices

Hamburg, Germany: The Ethylene Carbonate market in Germany has exhibited an inclining trend in the first half of October 2023 due to rising raw materials and changing energy prices. Additionally, amid the region's constrained availability of raw materials, the manufacturers were operating at lower rates amid declining profit margins and weak demand. On the other side, the demand for Ethylene Carbonate from the downstream consumer market has remained poor, and the acquisitions have been made mostly on a demand basis.

The debility in domestic demand, specifically in terms of consumption, including the Ethylene Carbonate market, has shown that rising consumer prices for most goods and services are heavily slamming the market. Furthermore, due to Germany's dominance in the trading circle, a shrinking German economy also negatively influenced the Ethylene Carbonate market in other European Union countries.

However, in the recent development, BASF has increased ethylene oxide and ethylene oxide derivative capacity at its Verbund plant in Antwerp, Belgium. The investment increases BASF's capacity for the related products by about 400,000 metric tons per year; as per the top officials at BASF, the new plant supports ongoing development and strengthening of Europe's market position. The €500 million investment includes a second world-scale ethylene oxide factory with purified ethylene oxide capability.

In addition to ethylene oxide, the investment includes extra capacity for alkoxylates, which are ethylene oxide derivatives utilized in a variety of industries such as detergent and cleaning, automotive, and construction. The new ethylene oxide and derivatives facility is also a significant investment for the Antwerp location. According to the CEO of BASF Antwerps, the investment focuses on the significance of the new site to one of the top chemical manufacturers in Europe and opens new paths.

With this, the Ethylene Carbonate manufacturing firms would be less reliant on the supplies imported from the overseas market, thereby increasing the profit margins for the regional market players. Furthermore, amid lower production costs, the consumer market would benefit as the prices of Ethylene Carbonate would decrease, which would further uplift consumer sentiments and favor the overall business conditions for Ethylene Carbonate in the region.

According to the ChemAnalyst database, the prices of Ethylene Carbonate are projected to be stable in the upcoming weeks, as the upstream value chain is expected to provide adequate support. Additionally, the demand for Ethylene Carbonate in the downstream electrolytes manufacturing firms in the region is likely to exhibit more positive expansion in the coming weeks, thanks to improved demand forecasts from end-use industries.