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Ethylene dichloride (EDC) is used primarily for the production of vinyl chloride
monomer (VCM), which in turn is used almost entirely for polyvinyl chloride
(PVC) production. In 2005, estimated global production of EDC, based on VCM
production, ranged from 40 million to 47 million metric tons. The world market
for EDC was valued at approximately $18.8 billion in 2005. In volume terms,
production increased about 3.5% annually from 2000 through 2005.
Estimated world capacity for EDC is as follows:
Consumption of EDC will remain dependent on the growth of the PVC business
and is expected to increase globally at an average annual rate of approximately
3.4% per year. Geographic patterns will vary significantly, with the developed
regions demonstrating slower growth rates than other areas.
China is expected to experience considerable growth in consumption of VCM
for PVC production. However, because the share of calcium carbide–based
VCM plants is high, the growth of EDC will be considerable but not astounding.
Major capacity expansions are expected to occur in China and Taiwan, the Middle
East (Iran, Oman and Saudi Arabia) and the United States. North America has
lost some of its competitive advantage because of the increase in natural gas
prices in 2001 and 2003. With increased prices, costs for ethylene feedstock
rise as do power costs for the energy-intensive chlor-alkali process. As a
result, investment plans have become much less certain.
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