The prices of Ethylene Dichloride (EDC) witnessed an upward trend in the second week of June ****. The prices surged by *.**, reaching USD ***/MT FOB Hamburg Germany. The upward momentum was largely driven by supply constraints in the market which led to supply tightening of EDC and slight traction in market sentiments. The demand of EDC from downstream sectors including construction and automotive remained cautious which provided firm support to the price trend. The trend was encouraged by the complex interplay of supply and demand which ended in the favour of a bullish market trend by the end of the week.
On the supply side, increased crude oil and ethylene prices directly increased the cost of production, which resulted in reduced profit margins for EDC producers. The maintenance shutdown at large plants such as Dow Chemical Company and INOVYN ChlorVinyls...
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