The prices of EDC continued to show remarkable stability in the week ending on 6^th December 2024. The prices continued to be stable amid fluctuations in various market conditions. The stability of the prices can be attributed to various factors including but not limited to supply demand dynamics, economic factors, raw material cost and so on.

The month of November witnessed a flat market scenario for EDC. The prices of EDC continued to be stable throughout the month. Despite fluctuations in feedstock cost Ethylene, the EDC market didn’t show any volatility. Production cost of EDC fluctuated with fluctuations in Ethylene prices, but profit margins remained consistent leading to stable price scenario. The major downstream demand from construction sector and automotive sector also remained steady which supported the overall flat price trend of EDC. On the demand side, the key downstream sectors showed moderate performance and modest growth which led to the steady price trend in the market. Various macroeconomic factors impacted the downstream markets. Despite the ongoing economic uncertainties, EDC market remained stable with steady demand and ample supply

The demand for PVC witnessed a downward trend in the market. PVC demand softened significantly in November 2024, particularly from the construction sector, which accounts for 60% of its consumption. Seasonal slowdowns in construction activity, compounded by higher interest rates, curbed market momentum. Downstream sectors for PVC and EDC continued to face weak economic conditions, adding to the bearish sentiment. In sustainable packaging, the focus on reducing material usage and enhancing recyclability had minimal impact on PVC demand, as innovations leaned towards other polymers like monolayer films. In Turkey, subdued trading activity and sluggish procurement underscored the broader demand challenges, mirroring global economic pressures and the year-end lull in industrial activity. The U.S. construction sector showed modest growth in November 2024, adding 10,000 jobs despite ongoing economic uncertainty driven by high interest rates and policy shifts. Residential and non-residential construction both saw slight increases in employment, with specialty trade contractors accounting for the majority of new hires.

On the supply side, despite an increase in production cost, the prices of EDC remained unaffected due to ample inventories and average demand from downstream PVC production sector. The manufacturing activities remained moderate in the month of November which further contributed to stable price dynamics. Production execution eased in November while demand continued to be sluggish and weak backlogs were observed. Suppliers continued to have capacity with lead times improving.

Looking further, the market for EDC continued to be stable with steady and positive outlook. The prices may continue to remain stable and steady demand growth is expected from key downstream sectors of automotive and construction sector.