Ethylene Dichloride (EDC) Showed Stability in the USA Market Amid Positive Market Conditions

The prices of Ethylene Dichloride (EDC) continued to show notable stability in the USA market. According to the analysts at ChemAnalyst, the prices stabilized at USD 235/MT FOB USGC USA. The stability in the prices was attributed to the interplay of complex factors which contributed to the stability of EDC prices. EDC is used as a primary feedstock in the production of Vinyl Chloride Monomer (VCM) which is used in production of PVC. The stability was also attributed to the effective supply chain management and consistent demand from downstream sectors particularly construction sector and automobile sector.

The stability of the EDC prices was attributed to various factors. The factors include raw material market, downstream market dynamics, supply dynamics and economic conditions of the country. On the demand side, the primary downstream market of EDC is impacted by PVC market dynamics. PVC is used in the automotive industry and construction sector. The month of October witnessed an increased sales of new automobiles indicating increased demand from the automotive sector. In October total 1327307 Units were sold, marking an increment of 12.8% from a month ago and 9.6% increase from a year ago as given by the preliminary figures including the estimates for the GM/Stellantis/Tesla and other sales figures. Although the market was still impacted by hurricanes in October sales, the introduction of new 2025 models was in full swing pushing the demand dynamics in the market. The sales also increased due to high number of business days in the month of October as compared to the previous month. The construction sector showed mixed fundamentals in the month of October. The EDC market was impacted by interest rate cuts with due to election uncertainty. The demand fundamentals were impacted by both the sectors leading up to a balanced market sentiment which contributed to the overall stable market dynamics.

On the supply side, the feedstock prices continued to show a bearish trend as the prices continued to decline in the market. The week ending on 8th November Ethylene prices remained stable contributing to the stable price trend for EDC. As the production cost and demand continued to be stable, prices of EDC showed little to no fluctuations in the market. Looking further, the market outlook for EDC remained positive with moderate growth expected in the market. The current market conditions continued to be stable amid unchanged supply and demand dynamics leading to consistent pricing in the USA market. Production facilities are expected to operate normally with minimum disruptions contributing to the overall stable market outlook.