Ethylene Dichloride prices forecasted to remain stable this week with minute fluctuation in the feed

In this week, the prices of Ethylene Dichloride in India remained stable on the upper end with the price trend of $1079/ton Ex-Chennai and $1057/ton Ex-Kandla. Crude oil and energy prices slipped in the global market where the prices slipped by $1.84 settling at $92.97 per barrel, while WTI futures plunged by $1.90 settling at $91.76 per barrel.

Despite the weak energy and crude prices in India, the prices of Ethylene were observed to be stable. Demand trends were reported to be weak in the region and sufficient product availability. Ethylene Dichloride prices in India were also observed to be steady as the market was sufficient with the inventories and necessity for new purchasing of stocks were moderate. Reliance Industries Limited (RIL) had also rolled over the prices of downstream PVC prices in the domestic market. The stable buying momentum along with recent slipping of crude resulted in such trajectory. Domestic producers of India want no change in the import duty on PVC as with the lower import duty the domestic market will hamper which will results in high inventories among the enterprises.

According to ChemAnalyst, the market sentiments of Ethylene Dichloride (EDC) will surge with increase in feedstock prices. ONGC Petro additions Limited (OPAL) had recently announced a turnaround of its Petrochemical unit starting from 1 April which had capacity to produce 1.1 mn tons of ethylene which will certainly compound a bullish impact on the market of Ethylene Dichloride as the buyers will be out of stock and resulted in higher prices. Crude and energy prices are also expected to grow further which will provide boost to the Petrochemical market of India. It is expected that the imports from Saudi Arabia and United States will increase as the demand will surge.