Hamburg, Germany: The German Ethylenediamine (EDA) market has experienced remarkable growth and positive momentum throughout September. This surge in the EDA market is attributed to several key factors, including the rising prices of crude oil, a surge in feedstock ethylene and ammonia prices, and an overall optimistic sentiment in the market.

While oil prices had stabilized during the week ending on September 22, they ultimately closed lower due to profit-taking and concerns about the balance between Russia's fuel export ban and future rate hikes. However, oil prices surged by more than 3% in the preceding week. This increase was primarily driven by concerns about limited global oil supply and positive demand forecasts from China, the world's largest oil importer. Brent crude oil reached $94 per barrel on the Friday of that week, marking a 3.7% increase compared to the previous week's closing price of $90.65 per barrel. WTI also experienced a incline trend, trading at USD 90.54 per barrel, representing a 3.46% gain from the previous Friday's trading session. Both oil benchmarks reached their highest levels since November 2022 as investors became increasingly worried about reduced supplies due to Russia and Saudi Arabia's plans to limit oil production until the end of the year.

The consistent upsurge in oil prices over the past several weeks has directly impacted the production costs of EDA, leading to an increase in its market value. Furthermore, feedstock ethylene and ammonia prices have shown an upward trend throughout September, further supporting EDA's surge in manufacturing costs and increasing its market value.

Furthermore, the Eurozone faced a downturn in its manufacturing sector, which had a cascading impact on the availability of EDA. Economic output in the Eurozone declined for four consecutive months, with a particularly severe blow to the manufacturing industry. The decrease in new orders compelled many companies to concentrate on their existing business to sustain their operations, resulting in a significant backlog of work. This backlog continued to decrease significantly in September, reaching levels not witnessed since June 2020. Reducing new orders marks the situation in the Eurozone, which has influenced the supply of EDA. As the manufacturing sectors grapple with ongoing challenges, the demand for EDA has been affected, increasing pressure on prices.

The German automotive, personal care and adhesives industries also exhibited strong market performance during September. These industries are among the major consumers of EDA, and their increased demand has further driven the uptick in EDA sales. Industry experts and analysts are optimistic about the future of the German EDA market, expecting this positive momentum to continue in the coming months.