CEH Report

Table of Contents

Abstract

Ethylene dichloride (EDC) is used primarily for the production of vinyl chloride monomer (VCM), which in turn is used almost entirely for polyvinyl chloride (PVC) production. Global consumption of EDC grew by about 4.5% per year from 2004 to 2007, but fell significantly in late 2008 as a result of the economic crisis. Consumption in 2008 was about the same as that in 2005.

The following pie chart shows world consumption of EDC:

EDC is made principally by the direct chlorination or oxychlorination of ethylene. Most EDC plants are integrated with VCM plants. The VCM process generates considerable quantities of hydrogen chloride (HCl), which is then recycled in the oxychlorination process to generate more EDC. VCM can also be made by the hydrochlorination of acetylene. This process is considered obsolete in all parts of the world except China. China was aggressively adding VCM plants based on the acetylene process from 2000 to 2008, but interest has waned since mid-2008, when crude oil prices dropped significantly, making EDC a more economic feedstock for VCM.

EDC is produced by about 65 firms in approximately fifty countries. It is difficult to tabulate EDC capacities because many producers do not report EDC capacity, or report the stand-alone capacity or the direct chlorination capacity, but do not include the oxychlorination capacity because it only processes an HCl recycle stream.

Consumption of EDC will remain dependent on the growth of the PVC business and is expected to increase globally at an average annual rate of approximately 4.8% per year from 2008 to 2013. Geographic patterns will vary significantly, with the developed regions demonstrating slower growth rates than other areas. Major VCM expansions are planned in the Middle East, Russia and China, but many plans will be delayed or cancelled because of the 2008–2009 economic crisis. In China, expansion of acetylene-based technology has been curbed by the plunge in crude oil prices; the EDC route is also more environmentally friendly, produces higher-purity product, consumes 50% less energy and less water. As a result, the Chinese may satisfy growing demand for PVC by importing more EDC-derived VCM and/or PVC. However, if the price of crude oil increases significantly, the Chinese may install more acetylene-based VCM capacity.