Asia
In the first half of 2025, the Ethylene Dichloride (EDC) market in Asia remained under consistent downward pressure. The primary reason was weak demand from the downstream Vinyl Chloride Monomer (VCM) sector, which itself was struggling with oversupply and sluggish offtake from the PVC industry. Although there was some temporary restocking activity post the Lunar New Year, it was short-lived, and buyers remained cautious throughout the period.
Inventory levels remained high across the region, and procurement activities slowed further as downstream producers reduced operating rates. On top of this, falling upstream Ethylene prices and easing crude oil values reduced the cost support for EDC, amplifying the bearish sentiment. Overall, the EDC market in Asia faced a demand-supply imbalance that kept prices on a downward path for most of H1.
Europe
The EDC market in Europe followed a similar declining trend during H1’25. Demand from downstream sectors, particularly PVC production, stayed weak due to slow construction activity and a sluggish broader economic environment. Chlor-alkali operations were stable, ensuring consistent EDC supply, but this outpaced the limited offtake from consumers.
While there were brief periods of logistical disruption and energy cost fluctuations, these did not significantly alter the overall bearish tone of the market. Structural challenges such as overcapacity in ethylene production and a cautious buyer base further constrained price support. As a result, EDC prices in Europe remained soft, with no strong signs of recovery through the half-year.
North America
In North America, EDC prices also showed a downward trajectory during the first half of 2025. Demand from the VCM and PVC manufacturing sectors remained subdued despite moderate support from infrastructure activities. The supply of EDC stayed ample due to stable chlor-alkali production and limited downstream pull. Occasional weather-related disruptions early in the year caused short-term operational hiccups, but they were quickly resolved, and inventory levels remained sufficient. Overall, the North American EDC market mirrored the global weakness, driven by oversupply and cautious demand from end-use sectors.