Ethylenediamine (EDA) prices in China surged by 44% in March 2026 due to severe supply disruptions and rising feedstock costs linked to the Strait of Hormuz closure. Naphtha shortages tightened ethylene availability, increasing production costs and limiting EDA output. Japan faced significant cuts in ethylene production, while similar disruptions spread across China, South Korea, and Taiwan, further restricting supply. Rising naphtha prices and volatile petrochemical markets added pressure. Despite steady downstream demand, panic buying and inventory buildup intensified the price surge. Overall, constrained supply, higher costs, and uncertain trade flows drove the sharp increase, with continued volatility expected in the near term.
Ethylenediamine (EDA) prices across China saw a sharp 44% increase in March 2026, as supply disruptions and rising feedstock costs shook the regional petrochemical market. The sudden surge was mainly linked to the ongoing closure of the Strait of Hormuz, which has heavily impacted the flow of naphtha from the Middle East to Asia, tightening the overall EDA supply chain.
EDA, a key chemical used in polymers, resins, coatings, agrochemicals, and personal care products, depends heavily on ethylene-based feedstocks. As a result, any disruption in ethylene production directly affects EDA availability. In March, the availability of ethylene tightened significantly due to feedstock shortages, pushing production costs higher and making production more expensive across the value chain.
Japan was among the hardest hit countries, directly influencing regional supply. With more than 60% of its naphtha imported and around 70% coming from the Middle East, supply disruptions forced major companies to act quickly. Mitsubishi Chemical Group reduced output at its Kashima and Mizushima facilities, while Mitsui Chemicals cut production at its Osaka and Ichihara plants. These cuts reduced ethylene availability, which in turn constrained EDA production. Sumitomo Chemical delayed plant restarts, and Tosoh also postponed operations at its Yokkaichi site, further tightening supply. Idemitsu Kosan also confirmed adjustments in operating rates, adding pressure on availability.
The disruption spread across Asia, further tightening the EDA market. In China, an ethylene cracker shutdown in Huizhou and force majeure declarations by key producers reduced the availability of raw materials required for production. South Korea and Taiwan also faced similar challenges, with companies warning of shutdowns due to difficulty in securing naphtha, which further restricted EDA supply in the region.
At the same time, naphtha prices surged sharply in early March within days. This increase pushed up ethylene and derivative costs, directly increasing EDA production costs. Even though some spot ethylene prices showed temporary weakness due to cautious buying, the overall market remained tight, keeping EDA prices elevated.
China’s petrochemical market also saw strong volatility, which impacted trends. Ethylene oxide prices rose by more than 50% during March, reflecting pressure across related chemical segments that influence EDA. Although China continues to expand its production capacity, rising energy costs and supply chain disruptions have limited immediate gains in output. Profit margins in the sector have also come under pressure, even as prices increased.
On the demand side, consumption of EDA remained steady across industries such as adhesives, paints, automotive, and pharmaceuticals. However, the key driver behind the EDA price surge was panic buying and inventory buildup. Buyers rushed to secure EDA amid fears of further shortages and rising costs, further pushing prices upward.
Overall, the Asian EDA market in March 2026 was driven by supply constraints, rising feedstock prices, and uncertain trade flows. The combination of reduced production, logistical challenges, and strong precautionary demand resulted in a steep 44% increase in EDA prices. As per ChemAnalyts, market participants expect continued volatility in EDA prices in the coming weeks as geopolitical uncertainties persist.
