Growing Use Of PVC In Automotive, Personal Care, Electronics, To Propel Global EDC Demand

Growing use of PVC in automotive, personal care, electronics, to propel global EDC demand

13-Apr-17

Ethylene dichloride (EDC) commonly known as 1,2-dichlorethane which is colorless, flammable and have smell similar to chloroform. Ethylene dichloride is extensively used for production of vinyl chloride monomer (VCM) which acts as precursor for manufacturing of polyvinyl chloride (PVC). EDC acts as intermediate and chemical solvents for many organic chemical compounds. Ethylene dichloride is made by the direct chlorination or oxychlorination of ethylene. Ethylene and Chlorine are two main ingredients in manufacturing of ethylene dichloride. Major application segment of Ethylene Dichloride is polyvinyl chloride owing to its diverse applications such as automotive, personal care and electronic industry. Growing automobile, construction and agriculture industry, contributes to large application of PVC which further enables the growth of ethylene dichloride market. Other application is construction industry owing to large scale application as reagent in building blocks. Increase in consumer spending along with changing lifestyle is further expected to boost the construction industry.

Ethylene is highly consumed in construction industry owing to its use as reagent in building blocks. Thus, growing demand of ethylene dichloride in construction industry is expected to drive the ethylene dichloride market. the growing use of PVC in pipes, roof tiles, windows, fencing and others is expected to augment the overall market growth. EDC is widely used as solvent for metal cleaning, adhesives and textile industry. It is also used to manufacture wide variety of chlorinated solvent such as vinylidene chloride, ethylene amines, trichloroethane and trichloroethylene. Moreover, growth of application industries with developing resins grade is expected to drive the overall market growth.

However, owing to high flammability and toxicity of Ethylene Dichloride has caused concern regarding health issues. By inhaling ethylene dichloride causes nausea, respiratory ailments and affects kidney, liver and central nervous systems. Also, dependence on crude oil and fluctuation in crude oil prices can further hinder the market growth. Development of bio-ethylene similar to ethylene reduces greenhouse gases and dependence on fossil fuels. Thus, major players are shifting their production to bio-ethylene which further opens opportunity for domain players in market.