Ethylene Dichloride (EDC) Prices, Chart, Index, Trends, Demand and Forecast | Q3 2025

Executive Summary

The third quarter of 2025 saw a notable decline in Ethylene Dichloride (EDC) prices across major regions, reflecting the broader weakness in PVC demand. In North America, prices fell sharply due to sluggish domestic offtake, while Asia-Pacific markets experienced moderate corrections, influenced by steady sourcing conditions despite weaker downstream activity. European and Middle Eastern markets also witnessed significant price reductions amid oversupply and weak PVC consumption.

Globally, the EDC market displayed a combination of subdued demand and stable feedstock availability, creating downward pressure on pricing. For businesses, understanding these dynamics is essential for procurement planning, cost management, and forecasting near-term market trends.

Introduction

Ethylene Dichloride (EDC), also known as 1,2-dichloroethane, is a critical intermediate chemical primarily used in the production of polyvinyl chloride (PVC) and other chlorinated products. EDC prices are closely tied to PVC demand, production costs, and regional supply-demand balances.

In Q3 2025, the global EDC market faced a broad price contraction, influenced by weakened PVC consumption, inventory adjustments, and regional supply imbalances. This article provides a detailed analysis of EDC price trends for North America, APAC, Europe, and the Middle East and Africa (MEA), highlighting market drivers, cost trends, logistics impacts, and the outlook for Q4 2025.

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Global EDC Price Overview: Q3 2025

Globally, Ethylene Dichloride prices fell across all key markets in Q3 2025. Regional declines ranged from 11% to over 16% quarter-over-quarter (QoQ), reflecting soft PVC demand and cautious downstream buying patterns.

• North America: Price index down 16.75% QoQ; average USD 106/MT (USGC deliveries).
• APAC (Japan): Price index down 11.79% QoQ; average USD 192/MT CFR Nagoya.
• Europe (Spain): Price index down 15.8% QoQ; average USD 163.33/MT.
• MEA (Saudi Arabia): Price index down 16.1% QoQ; average USD 189.33/MT.

The downward trend was consistent across regions, indicating a global synchronization between weak PVC demand and available EDC supply.

North America: USA EDC Market Analysis

Price Movements

In the United States, the Ethylene Dichloride Price Index declined sharply by 16.75% QoQ, driven primarily by weak PVC demand in the construction and industrial sectors. The average EDC price for Q3 2025 settled at USD 106/MT, based on US Gulf Coast (USGC) deliveries.

Market Drivers

1. Weak PVC Offtake: Reduced activity in construction and infrastructure projects led to slower PVC consumption, directly impacting EDC demand.
2. Stable Feedstock Costs: Ethylene feedstock availability remained stable, limiting extreme volatility in pricing.
3. Inventory Adjustments: Producers and traders maintained higher inventories in anticipation of lower demand, exerting downward pressure on spot prices.

Procurement Behavior

Buyers adopted a cautious procurement approach, delaying large-volume contracts and favoring shorter-term deliveries, which contributed to subdued spot activity.

Outlook

With PVC demand expected to recover slowly in Q4 2025, EDC prices may stabilize but are unlikely to see significant upward movement until downstream consumption strengthens.

APAC: Japanese EDC Market Analysis

Price Movements

In Japan, the EDC Price Index fell by 11.79% QoQ, reflecting weaker PVC demand from the construction, automotive, and packaging sectors. The average price was USD 192/MT CFR Nagoya, indicating relative stability in sourcing despite declining demand.

Market Dynamics

1. Steady Sourcing: Japanese buyers maintained regular procurement contracts, which limited extreme volatility despite falling prices.
2. Moderate Oversupply: Although demand softened, EDC supply remained largely balanced, preventing dramatic price swings.
3. Downstream Trends: PVC production adjustments by major manufacturers reduced excessive market accumulation.

Regional Trade Flows

Japan’s imports of EDC primarily come from Middle Eastern and Southeast Asian producers. Stable logistics and shipping schedules prevented sudden supply shocks.

Outlook

Q4 2025 is expected to see moderate recovery if construction activity picks up post-monsoon, but any recovery in prices will be gradual given the global demand slowdown.

Europe: Spanish EDC Market Analysis

Price Movements

In Spain, the EDC Price Index decreased by 15.8% QoQ, with the average price reaching USD 163.33/MT. Weak PVC demand combined with oversupply in the market pressured prices.

Market Drivers

1. Oversupply Conditions: Production capacity remained robust, creating excess availability amid soft demand.
2. Subdued PVC Activity: Lower offtake from construction and packaging sectors reduced the need for EDC procurement.
3. Spot Market Decline: European spot market transactions slowed, contributing to price corrections.

Procurement and Supply Trends

European buyers increasingly relied on short-term contracts to manage costs, minimizing exposure to price volatility. Supply chains remained stable, though traders observed declining margins due to falling EDC prices.

Outlook

Unless PVC demand rebounds significantly in Q4 2025, EDC prices in Europe may continue to see pressure. Strategic inventory management and contract renegotiations are likely to dominate buyer behavior.

MEA: Saudi Arabian EDC Market Analysis

Price Movements

In Saudi Arabia, EDC prices fell by 16.1% QoQ, with the average price at USD 189.33/MT ex-Riyadh. Weak PVC offtake and inventory buildup were the primary drivers.

Market Drivers

1. Weak Domestic PVC Demand: Regional construction and industrial sectors have slowed, reducing downstream requirements for EDC.
2. Inventory Accumulation: Producers held higher stock levels due to cautious downstream procurement, adding downward pressure on prices.
3. Stable Logistics: Despite weak demand, delivery and shipping operations remained consistent, limiting extreme price fluctuations.

Regional Trade Flows

Saudi producers continued exports to APAC and Europe, though volumes were tempered by declining international demand.

Outlook

Prices in MEA are expected to remain under pressure unless regional PVC demand picks up or global supply tightens. Strategic exports and cost-effective production will remain key to market balance.

Key Factors Influencing EDC Prices in Q3 2025

Several global and regional factors contributed to the observed price trends:

1. Weak PVC Demand: The most significant driver behind declining EDC prices, affecting all major regions.
2. Stable Feedstock Availability: Adequate ethylene supply prevented extreme price spikes but also limited price support.
3. Inventory Levels: High inventory positions among producers and traders exerted downward pressure.
4. Global Oversupply: European and MEA markets experienced oversupply conditions, amplifying the price correction.
5. Procurement Patterns: Buyers opted for short-term contracts and cautious procurement to manage risk, reducing spot market activity.

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 Production and Cost Trends

Ethylene Dichloride production costs are largely influenced by ethylene and chlorine feedstock prices, energy costs, and operational efficiencies:

• North America: Stable ethylene pricing and energy costs limited cost-driven volatility.
• APAC: Feedstock prices remained relatively constant; sourcing stability helped maintain moderate price fluctuations.
• Europe: Production costs were steady, but oversupply kept EDC prices below average cost levels for many producers.
• MEA: Operational costs remained low, supporting exports despite weaker domestic demand.

Logistics and Trade Flow Impacts

Logistics and trade flows played a stabilizing role during Q3 2025:

• Shipping Stability: No major disruptions in freight or port operations were reported.
• Trade Realignment: Surplus EDC from Europe and MEA was redirected to APAC and Latin American markets, mitigating extreme price volatility.
• Contract Flexibility: Many long-term contracts included price adjustment clauses based on PVC and feedstock prices, allowing suppliers and buyers to manage market risk.

Historical Quarterly Review

• Q1 2025: EDC prices were relatively stable, supported by moderate PVC demand and balanced inventories.
• Q2 2025: Prices showed early signs of correction, reflecting softening PVC consumption in North America and Europe.
• Q3 2025: Prices declined sharply across all major regions due to weak demand, oversupply, and cautious buyer behavior.

Procurement Outlook

Businesses seeking to procure EDC in Q4 2025 should consider:

1. Short-term Contracts: With market uncertainty, short-term contracts offer flexibility amid declining prices.
2. Inventory Management: Avoid excessive stockpiling in regions with weak demand.
3. Global Sourcing Opportunities: Consider importing from regions with surplus availability to leverage lower costs.
4. Monitoring PVC Trends: Downstream PVC demand recovery will directly influence EDC pricing.

Market Forecast: Q4 2025

• North America: Prices may stabilize at low levels; gradual recovery possible with increased construction and industrial activity.
• APAC: Moderate upward correction possible if Japanese PVC demand strengthens.
• Europe: Price recovery unlikely without a rebound in PVC demand; oversupply may persist.
• MEA: Export strategies and stable production costs may support prices but domestic demand remains weak.

Frequently Asked Questions (FAQs)

Q1. What causes Ethylene Dichloride prices to fall?
A1. Weak PVC demand, oversupply, high inventories, and stable feedstock costs are the main drivers behind price declines.

Q2. How are EDC prices linked to PVC demand?
A2. EDC is a key feedstock for PVC. Any changes in PVC production or consumption directly influence EDC prices.

Q3. Which regions were most affected in Q3 2025?
A3. North America and the Middle East experienced the sharpest declines, while APAC and Europe saw moderate price corrections.

Q4. Can EDC prices rebound in Q4 2025?
A4. Prices may stabilize or see moderate increases if downstream PVC demand strengthens, but oversupply and cautious procurement may limit sharp recoveries.

Q5. What strategies should buyers adopt?
A5. Buyers should focus on short-term contracts, flexible sourcing, and careful inventory management to mitigate risk during volatile market conditions.

Conclusion

Q3 2025 marked a challenging quarter for Ethylene Dichloride prices, with declines observed across North America, APAC, Europe, and MEA. The principal drivers included weak PVC demand, high inventory levels, and moderate oversupply conditions.

While stable feedstock availability prevented extreme volatility, pricing pressure remained pervasive across all regions. Buyers and producers must carefully navigate short-term contracts, monitor PVC demand trends, and optimize inventory strategies to maintain market stability.

Looking forward to Q4 2025, moderate stabilization is likely, but a sustained price recovery will depend on a tangible rebound in downstream PVC consumption and regional supply-demand adjustments.

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