Key facts
- Middle East EDC imports to India fell 73.1% in 1H 2026 compared to 1H 2025.
- The disruption is attributed to the US-Iran war and the closure of the Strait of Hormuz.
- India received Middle Eastern EDC only in the first quarter of 2026.
- Alternative sources like northeast Asia, southeast Asia, and western Europe saw increased EDC imports.
- Indian PVC producers have largely secured alternative supplies and passed on higher costs.
Ethylene dichloride (EDC) imports into India from the Middle East have fallen sharply in the first half of 2026. This decline is attributed to disruptions caused by the US-Iran war and the closure of the Strait of Hormuz, which impacted supplies from a key source region.
According to Global Trade Tracker (GTT) data, Middle East EDC flows into India totalled 49,144t between January and June 2026. India received Middle Eastern EDC only in the first quarter, with no imports recorded since then. This represents a 73.1pc decrease compared to the first half of 2025, when Middle Eastern EDC constituted over 51% of India's total imports for that year.
The reduced supply from the Middle East has created opportunities for increased imports from northeast Asia, southeast Asia, and western Europe. EDC imports from northeast Asia to India rose from zero in the first half of 2025 to 10,498t so far in 2026. Volumes from southeast Asia increased by 40.4%, and those from western Europe grew by 48.1%.
Market participants noted that producers in the Middle East are operating at lower rates or idling production lines to manage potential EDC oversupply, a direct consequence of the US-Iran conflict. Indian polyvinyl chloride (PVC) producers have adapted by sourcing EDC feedstock from alternative markets. Their need for EDC was further amplified by the closure of a domestic EDC production unit in mid-July.
EDC prices across the Asia-Pacific region have risen, driven by increasing feedstock ethylene costs and weak caustic soda prices, which incentivize ECU operators to prioritize chlorine chain margins. Higher EDC demand in southeast Asia and reduced US export availability have also contributed to price increases.
Argus assessed July EDC spot prices at $307-308/t cfr northeast Asia and $282-284/t cfr southeast Asia on July 30, with indications of further price increases in August. Despite these challenges, concerns over lower Middle Eastern EDC flows have had a limited impact on Indian PVC production thus far, as major importers secured alternative supplies. Indian PVC producers also reported minimal difficulty in passing higher feedstock costs to the local suspension PVC (s-PVC) market, especially as s-PVC import prices remain above domestic levels due to elevated freight costs.
However, the ongoing closure of the Strait of Hormuz presents a potential short-term risk to Indian PVC producers if they cannot secure sufficient feedstock to maintain operating rates. This situation has led some market participants to anticipate shifts in EDC trade flows, including greater offtake from western Europe and northeast Asia for the remainder of 2026.