EDC

Lackluster market conditions prevailed in the EDC markets of Asia, stagnating prices at US$400/MT in the week of December 17, 2007. Producers have been operating downstream VCM plants at reduced rates because of realization of poor production margins, causing a lull in demand for EDC. A difference of twenty dollars persists between sellers’ bids at US$420/MT CFR Asia and buyers’ intentions. Demand for EDC in Asia is expected to be reduced in January as Taiwan VCM plans to shut its 300,000 tpa VCM plant in Kaohsiung for 4 weeks maintenance. In the US, EDC markets are weak indicated by quotes as low as US$360/MT FOB. Producers are finding it increasingly difficult to maintain production rates at these prices.