US Dichloroethane Exports Jump Amid Global Supply Shortages

Since March, the US dichloroethane (EDC) export market has continued its upward trajectory, driven by a combination of supply constraints, rising production costs, and geopolitical disruptions.

On the cost side, shipping through the Strait of Hormuz has been constrained, widening global crude oil and ethylene supply gaps. Higher raw material prices have created firm support for US EDC export quotes. Meanwhile, tight global supply has positioned the United States as a primary alternative source.

Geopolitical and logistical factors have further fueled the market. Increased shipping risk premiums and rerouted trade flows, coupled with disruptions in the Red Sea and Hormuz Strait, have pushed container and crude transport costs sharply higher. Ocean freight from the US to Asia and Europe has surged, contributing to elevated export prices.

As a result of rising energy costs, regional supply contractions, global shortages, and logistical disruptions, Northwest European EDC export quotations have been raised once again.

In Asia, dichloroethane prices are also climbing. On the supply side, Middle East conflicts have interrupted ethylene feedstock to South Korea, leading to production cuts and halted EDC exports. China has limited volumes available for export, while European supplies cannot quickly fill the gap due to freight and shipping delays, leaving the Asian market without alternative sources.

Cost pressures have intensified as local ethylene prices rise, lifting production cost lines and leaving manufacturers with no room for price reductions. Logistical constraints are compounding the issue, with intra-Asia and cross-region freight rates increasing amid heightened Middle East tensions. Market sentiment reflects these pressures: with tight supply and cost-driven expectations, local firms have paused quoting and restricted sales, further pushing spot prices higher.