*US EDC production climbs, ignores high ethylene feedstock prices
*Strong EDC production coincides with high chlor-alkali production
US ethylene dichloride production in the third quarter of 2014 rose 3.63% compared with the prior quarter and 7.64% compared with the year-ago period, according to data released Friday by the American Fuel and Petrochemical Manufacturers.
The 4.83 billion lb produced in the most recent quarter was the highest quarterly US EDC production since the 4.83 billion lb produced in Q2 2013, according to the trade group. In the year-ago period, output was 4.488 billion lb, while in the second quarter production totaled 4.661 billion lb.
Production in the first three quarters of 2014 fell 1.46% year on year to 13.628 billion lb from 13.829 billion lb produced in the same period of 2013.
EDC production consists of chlorinating ethylene, and is the starting material of the much more commonly used polyvinyl chloride(PVC).
Recent chlor-alkali expansions have led to an abundance of chlorine, which is difficult to store and transport, and in turn is reacted with ethylene to produce the much easier to handle EDC.
Most EDC/PVC producers do not own ethylene production facilities and saw a spike in ethylene prices that hit a multi-year high of at end of the third quarter, while chlorine production is up 6.6% year on year in 2014.
US spot ethylene was assessed at 76.25 cents/lb FD USG on September 19 — the highest level since Platts began assessing US spot ethylene on July 26, 2004. On Thursday, the price was assessed at 56.25 cents/lb.
US cumulative chlorine production was around 7.25 million st in the first nine months of 2014, while cumulative total for the same period in 2013 was around 6.8 million st.
– Platts.com
