EDC Weekly Report 28 April 2018

Weekly Price Trend: 23-04-2018 to 27-04-2018

• The above graph focuses on the weekly price trend of EDC for the current week.
• As per the above graph, it has been inferred that this week the prices of EDC have remained firm in compare to previous week and at the end of this week prices were assessed at the level of Rs 18/kg.

Total import at various ports of India March, 2018

Above chart represents the total imported quantity of EDC for the month of March, 2018.
Last month total imports were around 43148MT. 

Booking Scenario

INDIA & INTERNATIONAL

• This week in the domestic market, prices of EDC have remained firm in compare to previous week and were assessed at Rs 18/kg.
• In international market, prices of EDC have increased in compare to earlier week.
• 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.
• This week feedstock ethylene values dropped as supply remains ample and sentiment remains weak.
• FOB Korea prices of feedstock ethylene USD 1305/MT
• CFR China prices of feedstock ethylene USD 1320MT
• CFR South East Asia prices of feedstock ethylene USD 1265MT.

 $1 = Rs. 66.66
 Import Custom Ex. Rate USD/ INR: 66.70
 Export Custom Ex. Rate USD/ INR: 65.00