What drives the price of dichloroethane (EDC) in China?

What drives the price of dichloroethane (EDC) in China?
EDC pricing in China is primarily driven by its role as an intermediate in the PVC value chain. Over 90% of EDC is consumed captively to produce vinyl chloride monomer, which then becomes PVC. This means EDC's market price is less about standalone supply-demand and more about the economics of the chlor-alkali and PVC chain. When caustic soda prices are strong, chlor-alkali producers can afford to sell chlorine derivatives like EDC at lower margins, pressuring prices. Conversely, weak caustic soda forces producers to defend EDC margins. Downstream demand from PVC construction and infrastructure sectors is the key demand-side driver, while feedstock ethylene and chlorine costs set the floor. Regulatory pressure, such as the US EPA's recent TSCA restrictions on 1,2-DCA worker exposure, adds compliance costs that could influence global trade flows.