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Despite Falling Demand, the US Ethylene Carbonate Prices Showcase Unusual Growth in September 2023
Despite Falling Demand, the US Ethylene Carbonate Prices Showcase Unusual Growth in September 2023

Despite Falling Demand, the US Ethylene Carbonate Prices Showcase Unusual Growth in September 2023

  • 05-Oct-2023 2:46 PM
  • Journalist: Sasha Fernandes

Texas, USA: The Ethylene Carbonate market in the USA demonstrated an increasing pricing trend in September 2023 due to rising raw material prices and fluctuating energy prices. However, the demand from the downstream consumer market has remained weak, and the purchases of Ethylene Carbonate were mainly on a demand basis.

Although, entering October, the demand from the downstream lithium-ion electrolytes manufacturing industries was observed to be improving faintly whereas, amid slight improvement in the business operating conditions and the ease in the factory gate deflation in China has also positively influenced the market sentiment of Ethylene Carbonate.

However, consumption of Ethylene Carbonate declined in the prior months as the price of everyday goods and services surged owing to inflation. Loans and mortgages were more expensive as interest rates climbed, decreasing home and commercial spending. Despite the fact that inflation in the United States has decreased to 4.9%, central banks still regard it as uncomfortably high, despite their 2% target.

Furthermore, consumer demand for Ethylene Carbonate remained sluggish in September as the United States revealed inflation figures that showed an increase, leading individuals to postpone purchases. In addition, the performance of the end-use industry remained muted as Housing Starts and Builder Confidence fell in reaction to rising rent and living expenses.

As per the market participants, the EV- industry is observing stagnancy in the US market because of poor downstream demand. Amid the falling prices of lithium salts, the willingness for new purchases has faded in the consumer market, and a strong wait-and-see attitude has been registered. A few distributors have stated that it is possible that purchasers are well-stocked or rely significantly on long-term contracts and do not need to enter the spot market at this time.

On the cost side, production costs of Ethylene Carbonate have risen in recent weeks as a result of OPEC+ and Russia's production cuts, causing international crude oil prices to rise across the region, and the recent increase in feedstock Ethylene oxide prices has increased the cost of producing Ethylene Carbonate in the domestic market. Furthermore, the current labor dispute at Australia's primary LNG plants has reduced natural gas supplies, significantly increasing US natural gas prices.

According to ChemAnalyst pricing intelligence, the prices for Ethylene Carbonate are expected to remain steady in the upcoming months, as the upstream value chain is expected to offer appropriate support. The Ethylene Carbonate market is expected to showcase further positive growth in the region in the upcoming weeks, owing to a strong demand outlook from the end-use industries.

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