There has been significant hike in EDC spot prices in north East Asia in last one year. The major reason for soaring in last few months is mainly due to heavy tariffs imposed by China on imports of EDC from US.
Recently China has lifted restriction on import of EDC this year which led to spike in spot demand from smaller players in the solvents industry.
Importers were previously being required to register with the Chinese environment ministry for overseas procurement of EDC, which was classified among 162 toxic chemicals subject to restrictions from 2014-2017.
EDC mainly goes to the production of vinyl chloride monomer (VCM), but is also used in solvent production for the textile, metal cleaning and adhesives industries.
Meanwhile, threats of a trade war between the US and China is also worrying market players. China’s plan to impose a 25% import tariff on EDC, as well as on downstream product polyvinyl chloride (PVC), from the US, could lead to a further tightening of supply and further spikes in regional prices.
