EDC market to grow at a CAGR of 3.47% from 2014 to 2019

29-Apr-15

EDC, also known as 1,2-dichloroethane, is a clear, colorless liquid with a pleasant odor and sweet taste. Ethylene and chlorine are the basic raw materials used in the production of EDC. EDC is produced by the chlorination of ethylene through direct chlorination or oxychlorination. Over 98% of the EDC is used as a chemical intermediate for the manufacture of VCM, which is used in PVC production. Also, EDC is used in the production of various industrial and consumer products. Technavio recognizes the following companies as the key players in Global Ethylene Dichloride (EDC) Market 2015-2019: Dow Chemical Co, Formosa Plastics Corp, INEOS Group Ltd, Occidental Chemical Corp and SolVin. Commenting on the report, an analyst from Technavio’s team said: “The global EDC market shows immense growth potential because of the emergence of certain trends such as the use of bio-ethylene as a potential feedstock for EDC. Bio-ethylene produced from bio-ethanol is chemically identical to ethylene, and the production process involves reduced GHG emissions and can reduce the dependence on fossil fuels.” According to the report, one of the main factors positively affecting the market is the growing demand from VCM applications for PVC production. This demand for VCM from PVC manufacturers will open up wide opportunities for the global EDC market players. One of the main challenges is the stringent environmental and health regulations imposed by the governments.