For the Quarter Ending September 2024
North America
In Q3 2024, Ethylene Diamine (EDA) prices in North America trended upward, with the USA experiencing the most pronounced price changes. Multiple factors influenced this growth in market dynamics. Supply constraints, triggered by disruptions like labor strikes and natural disasters, considerably restricted Ethylene Diamine (EDA) availability across the region. These disruptions affected both production and transportation, resulting in a scarcity that drove prices higher.
Demand from the downstream agrochemical sector also surged as the plantation season advanced, adding further pressure. The agrochemical industry, reliant on Ethylene Diamine in fertilizers, experienced intensified seasonal demand, exacerbating supply limitations.
Additionally, rising production costs due to an increase in feedstock Ethylene Dichloride prices further supported Ethylene Diamine price growth. This, combined with rising demand, revealed inventory levels insufficient to satisfy market needs. To align with this constrained supply scenario, market players raised their ex-quotations, reinforcing bullish market sentiments for the commodity in the US.
APAC
In Q3 2024, Ethylenediamine (EDA) prices in the APAC region experienced a marked decline, with India showing the most significant reductions. The downward trend was driven by an oversupply of EDA, coupled with weaker-than-expected demand from key downstream sectors, which led to surplus inventories across the market. This situation was exacerbated by disruptions in production, including plant shutdowns in major manufacturing hubs, which added to regional instability. Seasonal factors also played a role, as delayed agricultural activities reduced the immediate need for EDA in agrochemical applications, further softening demand. These combined influences resulted in a bearish market environment, with EDA prices falling by 15% compared to the previous quarter and slipping an additional 8% between the first and second halves of Q3. This downward momentum was particularly evident in India, where prices reached USD 1563 per metric ton (CFR-JNPT) by the quarter's end. The cumulative effect of oversupply, demand fluctuations, and production disruptions underscored the challenging conditions prevailing in the APAC EDA market during this period.
Europe
In Q3 2024, the Ethylene Diamine (EDA) market experienced an uptrend, propelled primarily by the rising costs of feedstock Ammonia, whereas Ethylene Dichloride (EDC) witnessed stability in its trend. The strong increase in Ammonia prices directly impacted EDA production expenses, pushing market prices upward as manufacturers passed on these heightened costs. This cost-driven price growth was further compounded by a surge in the demand from the agrochemical sector. During the quarter, agricultural activities across Europe surged, intensifying the demand for agrochemicals and, consequently, for EDA. This seasonal spike in agricultural activity typically increases fertilizer demand, straining supply channels for EDA. As a result, the region faced a pronounced supply-demand imbalance, which supported bullish price momentum throughout Q3. The heightened demand from the agrochemical industry, coupled with restricted supply, created a favorable environment for price increases, reflecting the market's sensitivity to both feedstock fluctuations and seasonal agricultural cycles. Moreover, the sustained high demand emphasized the market's dependency on downstream agricultural activities, magnifying the effects of any shifts in the feedstock costs or seasonal agricultural requirements. Consequently, Q3 2024 marked a period of elevated pricing for EDA, underscoring the market's intricate supply-demand dynamics in Europe.
For the Quarter Ending June 2024
North America
In Q2 2024, the Ethylenediamine (EDA) market in North America encountered a notable downturn, characterized by a substantial decline in prices. This bearish trend was primarily driven by an oversupply situation within the market. Additionally, the production cost of the commodity saw a decline, influenced by the reduction in feedstock prices for Ethylene Dichloride (EDC) and Ammonia. Lower feedstock costs contributed to decreased overall production expenses, further reinforcing the bearish market sentiment. The influx of EDA into the market created an imbalance between supply and demand, leading to downward pressure on prices as market players were compelled to adjust their quotations to move excess inventory. This oversupply situation was compounded by a relatively stable production rate, which did not alleviate the surplus but rather contributed to maintaining high inventory levels.
Another significant factor contributing to the downturn was the subdued demand from key downstream sectors, particularly agrochemicals. The agrochemical sector, which typically represents a substantial portion of EDA consumption, exhibited weak demand during the quarter. This subdued demand was influenced by seasonal factors and reduced activity in agricultural applications. The lack of significant demand from this critical sector exacerbated the supply-demand imbalance, further driving down prices as sellers struggled to find buyers for their excess stock.
Additionally, intense competitive pressure from international markets played a role in the declining prices. The global EDA market experienced competitive dynamics that pressured North American prices. Import competition, coupled with favorable pricing and higher production efficiencies in other regions, forced North American producers to lower their prices to remain competitive. This international competition, alongside domestic oversupply and weak demand, collectively fostered a bearish market environment, resulting in a continued downward trend in EDA prices throughout the quarter.
APAC
In Q2 2024, the Ethylenediamine (EDA) market in the APAC region experienced a significant downturn marked by declining prices. Several factors contributed to this pricing environment, including robust supply levels, subdued demand from key consumer sectors such as pharmaceuticals, adhesives, and automobiles, and intense competitive pressure from international markets. Global economic challenges, particularly reduced activities in major sectors and decreased international bidding, further exacerbated the decline. The oversupply scenario, alongside reduced production efforts due to sluggish demand, created substantial downward pressure on prices. In India, the Ethylenediamine (EDA) market witnessed the most pronounced price changes. The overall trend depicted a bearish market sentiment, driven by high inventories and weakened demand. Seasonal factors, such as a general slowdown in manufacturing activities and persistent global economic uncertainties, contributed to the downward trajectory Compared to the same quarter last year, prices have depreciated significantly, reflecting the broader regional trend. Concluding Q2 2024, the price of Ethylenediamine (EDA) in India stood at USD 146500/MT CFR-JNPT, signalling a persistently negative pricing environment. This overall decline underscores the challenging market conditions and diminished profitability for producers amidst a backdrop of excess supply and tepid demand. Notably, no plant shutdowns or significant disruptions were reported by market participants, indicating that the observed price changes were primarily driven by market dynamics rather than production halts.
Europe
During Q2 2024, the European Ethylenediamine (EDA) market showcased a downward trend. The bearish trend observed in the market was driven by a combination of stable yet subdued demand from the downstream agrochemical sector and sufficient existing inventory levels. Despite the stable nature of demand, the agrochemical sector did not experience any significant spikes in consumption due to the ongoing harvesting season, which typically results in a more moderate demand for agricultural inputs. This moderate demand, paired with the availability of ample inventory, created a situation where market players were able to maintain a cautious approach to pricing. The existing stock levels alleviated pressure on the market, allowing it to absorb the steady but restrained demand without necessitating substantial price adjustments. Additionally, the production cost of the commodity saw a decline, influenced by the reduction in feedstock prices for Ethylene Dichloride and Ammonia. Lower feedstock costs contributed to decreased overall production expenses, further reinforcing the bearish market sentiment. The reduction in production costs, coupled with the already stable and subdued demand, resulted in a market environment where price increases were unnecessary. As a result, market participants remained cautious, reflecting the prevailing market conditions in their pricing strategies and maintaining a steady but conservative pricing stance.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the North American Ethylenediamine (EDA) market faced a noticeable decline in prices, driven by multiple challenging factors. A key contributor to this trend was the decreased demand originating from the fertilizer industry, which traditionally forms a significant portion of the EDA market demand. Additionally, the market grappled with an oversupply of EDA, exacerbating the downward pressure on prices.
Compounding these issues were delays in exports, largely attributable to trade uncertainties and disruptions within the supply chain. Such logistical challenges hindered the efficient distribution of EDA, further saturating the domestic market and suppressing price levels. As a result, the overall pricing trend for Ethylenediamine (EDA) in North America during Q1 2024 was distinctly negative, with prices consistently on the decline. This was particularly evident in the USA, where the market observed the most significant price reductions compared to both the same quarter in the previous year and the preceding quarter in 2024.
In conclusion, the Ethylenediamine (EDA) market in North America experienced a notably difficult pricing environment, with declining prices influenced by a combination of reduced demand, oversupply, and logistical challenges. These factors collectively contributed to the downward trajectory in prices, reflecting broader market dynamics and specific industry challenges during the period.
APAC
During the first quarter of 2024, the Ethylenediamine (EDA) market in the APAC region witnessed a generally positive trend, with India experiencing the most pronounced price changes. At the onset of the quarter, EDA prices in India showed an upward trend, primarily driven by high demand coupled with a low-supply situation. This initial surge in prices set the tone for the subsequent market behavior throughout the quarter. As the quarter advanced, EDA prices in India began to recover further, underscored by increasing demand from significant industrial sectors like agrochemicals and pharmaceuticals, both of which are key consumers of EDA. This surge in demand is reflective of broader regional trends where steady demand for EDA across the APAC region has supported a positive pricing environment. The pricing dynamics over the quarter also exhibited typical seasonal patterns, with the first half of the quarter seeing relatively lower prices which then transitioned into a recovery phase with increasing prices in the latter half. This shift is largely attributable to usual market dynamics that include fluctuations in demand and supply. By the end of the quarter, the price for EDA in India was recorded at USD 2218/MT CFR-JNPT. This figure not only highlights the upward trend over the quarter but also aligns with the overall positive trajectory observed in the broader APAC market.
Europe
During the first quarter of 2024, the European market for Ethylenediamine (EDA) witnessed a noticeable decline in prices, influenced by several key factors. One primary driver of this downward trend was the reduced demand from the downstream fertilizer sector. This sector typically experiences fluctuations due to seasonal cycles, and the end of the winter planting season coupled with adverse weather conditions led to a diminished need for EDA. Additionally, the situation was exacerbated by ongoing farmer protests across the region, which were prompted by rising energy costs. These protests significantly curtailed purchasing activities, further depressing demand. These combined influences have fostered a bearish market environment characterized by an overabundance of supply against the backdrop of faltering demand. With supply levels remaining high and demand weakening, the market saw a surplus availability of EDA, which contributed to the narrowing of the demand-supply gap. Consequently, this imbalance has led to a notable decrease in EDA prices across Europe. In summary, the European Ethylenediamine market during Q1 2024 was marked by a negative pricing environment.
For the Quarter Ending December 2023
North America
The US market of Ethylenediamine (EDA) witnessed a decent plunge during the fourth quarter of 2023 in accordance with the overseas market. A significant producer and exporter of EDA, with a well-developed chemical industry and access to abundant natural gas resources for raw material ethylene led the market of EDA to showcase a downtrend throughout the quarter.
Due to the weak downstream industry demand in the area, the spot export prices for EDC suffered a significant decrease. Furthermore, US purchasers are now actively discussing possible contract price reductions in response to the notable and abrupt decline in export prices relative to contracted pricing.
Furthermore, EDC's regional market operations were disrupted by the problems with the Panama Canal that affected US shipping. November 2023 saw a decline in EDC prices in the US market due to low domestic and regional demand and plentiful stockpiles held by market participants. The entire cost of EDC in the US market during this period was influenced by a drop in downstream consumer mood along with destocking attitudes among the players.
APAC
The fourth quarter of 2023 has seen various factors impacting the Ethylenediamine (EDA) market in the APAC region. Firstly, there has been a moderate to high supply of Ethylenediamine, supported by readily available ocean containers and truck capacity. However, the demand for Ethylenediamine has remained moderate, except for the tractors segment which experienced a decline in sales. The Indian market, in particular, has witnessed a decrease in Ethylenediamine prices due to reduced costs of imports from other Asian countries. This decline was attributed to higher inventory levels and lower demand in many industries. Looking specifically at India, the country has experienced a decrease in Ethylenediamine prices during this quarter. The market has faced significant competition from Chinese producers, who are selling off their stocks at significant losses and engaging in dumping practices. This has led to Indian manufacturers selling their inventories at notable discounts, impacting profit margins and resulting in operations running at diminished capacities. Overall, the APAC region has seen a bearish market situation for Ethylenediamine, with moderate to high supply and moderate demand. The price of Ethylenediamine in India for the current quarter was INR 145500/MT CFR-JNPT.
Europe
Compared to the previous quarter, the Ethylenediamine (EDA) market witnessed a rebound primarily attributed to the increased freight cost during the fourth quarter. EDA market participants were cautious due to increased uncertainty around the production rates in the industry amid rising crude oil costs and supply shortages. Supply decreases inside the Eurozone masked market players' concerns about the steady increase in demand from the downstream industry. Additionally, the flash data from Eurostat, the European Union's statistical office, shows that in October 2023, the Euro area's inflation rate was 2.9%, down from 4.3% in September. The most recent data from the German statistics agency shows that in October 2023, the inflation rate was registered at 3.8 positive. From an upstream standpoint, in response to the unpredictability of the current market conditions throughout the European region, some ethylene producers have been known to announce plant shutdowns during November. As a result, EDA players have also chosen to play it cautiously, limiting production rates and causing prices to soar amid shortages and strengthening regional demand fundamentals during this timeframe.
