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Ethylene dichloride is a colorless liquid with sweet odor. It is manufactured by reacting ethylene with chlorine, which is further thermally cracked in order to produce vinyl chloride monomer. Ethylene dichloride can be manufactured using two routes. The direct chlorination process that uses pure chlorine and ethylene is primarily employed to produce ethylene dichloride. Another process called oxy-chlorination, wherein the ethylene reacts with chlorine in hydrogen chloride, is also frequently used for the production of ethylene dichloride. Under the oxy-chlorination process, ethylene dichloride is converted into vinyl chloride monomer by thermal cracking and the hydrogen chloride by-product can again be recycled in an oxy-chlorination plant to make more ethylene dichloride.

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Ethylene Dichloride Market: Drivers and Restraints

Production of ethylene dichloride is generally carried out at polyvinyl chloride manufacturing plants. Ethylene dichloride is mainly used in construction applications; hence, its demand is closely related to the construction industry dynamics. Demand for ethylene dichloride is anticipated to rise at a year-on-year rate of nearly 5% during the forecast period owing to the increase in demand for construction for polyvinyl chloride in developing countries and stable growth in developed countries. However, environmental concerns regarding some of the plasticizers used in the manufacture of polyvinyl chloride are likely to hamper the production of polyvinyl chloride. This, in turn, is anticipated to restrain the demand for ethylene dichloride during the forecast period. Manufacturers such as VinTec developed a new high-temperature direct chlorination process. The newly developed process has proved to considerably increase the purity and yields of the ethylene chloride manufacturing process by using a new, inorganic-based catalyst. This is projected to offer lucrative opportunities to the global ethylene dichloride market in the near future.

In terms of geography, the global ethylene dichloride market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America held major share of nearly 40% of the global ethylene dichloride market in 2017. It was followed by Europe. However, Asia Pacific was the key consumer of ethylene dichloride in 2017. The ethylene dichloride market in the region is anticipated to expand at a fast pace during the forecast period. Asia Pacific primarily imports ethylene dichloride from the U.S. and the Middle East. The supply of ethylene dichloride was restricted in 2017; hence, prices of ethylene dichloride increased due to the rise in prices of ethylene.

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Ethylene Dichloride Market: Key Market Players

Key players operating in the ethylene dichloride market are:

Formosa Plastics Corporation, U.S.A.,Occidental Chemical Corporation.The Dow Chemical Company