For the Quarter Ending June 2023
North America
North American Ethylenediamine (EDA) prices decreased steadily in the 2nd quarter of 2023. In the North American market, EDA prices decreased significantly due to the oversupply situation caused by the stockpiling of inventories amid low demand. According to the data, EDA prices have been steadily declining for a long period. The month of April proved to be a bearish month for the industry as the demand from the construction sector decreased moderately to low. The North American market saw a significant decrease in EDA prices in May and June as well. This decrease was mainly due to the decreasing cost of EDA imported from key suppliers like Saudi Arabia and Sweden, as well as Belgium, as these countries decreased their production costs and offered the chemical more competitively. The demand from the downstream industries, especially the personal care sector and the adhesives sector, remained weak. The weak demand led to a decrease in purchasing activities, resulting in a surplus of supply, which pushed down the EDA prices of the North American market.
APAC
The Ethylenediamine (EDA) prices declined consistently in the Asia-pacific region during quarter 2 of 2023. A notable fall in the price of EDA was observed in the Asian market owing to stockpiled inventories amidst low demand, which has induced a condition of oversupply in the country. As per the data, the price of the product has been falling for a long time and the month of April turned out to be bearish for several industries. Demand from the construction remained moderate to low in the meantime. Likewise, during May and June, the Asian market witnessed a notable decrease in EDA prices. This decline was primarily driven by the diminishing cost of imported EDA from key suppliers such as Saudi Arabia, Sweden, and Belgium. These countries experienced a reduction in their production costs, allowing them to offer the chemical at more competitive prices. Additionally, the demand from downstream industries, particularly the personal care and adhesives sectors, remained weak, further contributing to the drop in prices. The sluggish demand from these industries resulted in lower purchasing activities, causing a surplus in supply, and subsequently pushing down the prices of Ethylenediamine in the Asian market.
Europe
Ethylenediamine (EDA) prices in Europe have been steadily decreasing for an extended period, and the latest data indicates that this trend has continued into Q2 2023. The decrease in EDA prices was largely attributed to an oversupply of the product, which was caused by the accumulation of inventories in the face of low demand. Furthermore, the demand from downstream industries, particularly the personal care and adhesives sectors, remained weak, leading to a shortage of supply, and resulting in a decline in EDA prices. In particular, the month of April showcased a bearish tone for the industry, as the construction sector experienced a moderate to low demand, which impacted the downstream demand of EDA and eventually led to a plunge in its market value. Additionally, the European market experienced a significant drop in EDA prices during May and June, driven by a decrease in the cost of imported EDA from key suppliers such as Saudi Arabia, and Sweden, which offered the chemical at a more competitive rate.
For the Quarter Ending March 2023
North America
For several weeks, the Ethylenediamine market in the USA has been witnessing a decline in prices due to reduced demand from both domestic and international markets. This trend is mainly caused by the decreasing prices of Ammonia, the primary feedstock utilized in Ethylenediamine production. The oversupply of Ethylenediamine resulting from consistent supplies from domestic producers and lower-priced imports from international markets has further contributed to the price decline in the US market. The market's bearish situation has been exacerbated by the potential of an economic slowdown and banking issues in the US, leading to a persistent drop in Ethylenediamine prices.
Asia
The price of Ethylenediamine (EDA) rose slightly during the second half of quarter 1 2023 in the domestic Indian market due to stable demand from downstream procurers. Indian traders kept their prices firm despite low demand from major exporters in other economies. The overall market situation is bullish, with stable supplies from domestic producers and no significant disruptions in the supply chain. Demand from India remained stable to firm, while international exporters faced a lack of demand. Imports from China remained cheaper, as the country's own economic momentum performed lower than expected while production activities recovered effectively, leading to piling up inventories within the country.
Europe
Over the past three months, there has been a significant decrease in Ethylenediamine prices in the European market. The cause of this bearish market can be attributed to consistently low demand from the domestic downstream industry, along with falling feedstock prices. Additionally, pricing dynamics have been influenced by an oversupply situation and uncertain market fundamentals. Although there is a reduced risk of an economic recession, demand remains moderate to low. Despite stable to firm supplies, the current price trend is driven by a relatively narrow demand-supply gap. Unexpectedly, prices have declined during the month due to an oversupply situation.
The price of Ethylenediamine decreased in the fourth quarter of 2022 as a result of the declining feedstock of ammonia in the US market. In the fourth quarter, the global market remained stagnant, and the product was stockpiled due to declining orders from the overseas and US domestic markets. The low demand from the downstream automotive, paints, and other key driving sectors also contributed to the negative price trend. Consumer spending and purchases decreased as a result of high-interest rates and inflation. The approaching holiday in the final month of Q4 further reduced buyer demand and orders in the USA market.
Due to weak cost pressure from feedstock Ammonia from the Asian market, the price of Ethylenediamine decreased throughout the fourth quarter of 2022. Further, the demand from the downstream paints, adhesives, and other sectors saw a decline during Q4. The government imposed the zero COVID restriction in China during Q4, which affected the trading activities in the domestic and overseas markets, and products got stockpiled in the market. At the same time, India also followed the same price trend because traders on the Indian domestic market had a lot of stockpiled products from exporting nations like Saudi Arabia and Japan.
During the fourth quarter of 2022, the price trend of Ethylenediamine decreased as a result of negative market sentiment. The weak-cost pressure from feedstock Ammonia also contributed to the negative price of the Ethylenediamine market. End-use industries saw little demand as a result of high inflation and a declining buying trend in the European market. Due to the ample gas storage in major EU nations, the availability of natural gas on the market increased, lowering production costs. Several businesses slowed down their production rates due to low demand from end-use industries, but the product was readily available. Producers offered to destock their products at a low price at the end of the quarter as the holidays got closer.
