The Ethylenediamine market in the US and Europe is projected to witness an upward trend toward the end of the third quarter, driven by the rising demand associated with the start of the plantation season, which boosts the need for agrochemicals like herbicides and fungicides that rely on Ethylenediamine as a key ingredient. In the US, this potential growth could be further compounded by the threat of hurricanes, which may disrupt Ethylenediamine production facilities along the Gulf Coast, leading to supply chain interruptions. Any significant disruption in production could tighten the market, causing supply shortages and driving up prices as demand continues to escalate, further straining the supply-demand balance in both regions.

In the US market, Ethylenediamine is expected to experience an upward trend in the coming weeks due to various factors. Key contributors to the price increase include a rise in production costs driven by higher feedstock prices, particularly for Ethylene Dichloride and Ammonia, as well as growing demand with the onset of the plantation season. Additionally, potential disruptions caused by hurricanes could impact Ethylenediamine production, leading to supply shortages. As a result, these factors are likely to push Ethylenediamine prices higher.

Moreover, the ocean freight situation remains volatile, with shipping volumes rerouted to U.S. West Coast ports due to diversions from the Red Sea and the looming possibility of an International Longshoremen’s Association (ILA) strike on the East Coast. Additionally, ongoing disruptions in major global trade routes, the threat of an ILA strike on the East Coast, and the recent rail strike in Canada, which will take weeks to stabilize, are likely to continue driving volume shifts to the U.S. West Coast. These ports are ill-prepared for such a significant increase in cargo, creating challenges that will significantly impact this year's peak season, leading to delayed shipments and higher costs. As a result, these factors are expected to collectively push Ethylenediamine prices higher.

In August, the Ethylenediamine market in Europe experienced its typical seasonal slowdown in demand due to the summer holidays, which further suppressed market activity. However, the combination of rising raw material costs and lower trading volumes during the holiday period is contributing to a steady increase in Ethylenediamine prices in Germany. Additionally, Europe is facing significant weather-related disruptions, with heavy snowfall in the Alps causing major transportation issues and severe flooding threats from heavy rainfall in southern Germany, Austria, and the Czech Republic, where red alerts have been issued. These adverse conditions have compounded logistical challenges, yet despite these hurdles, the consumption of Ethylenediamine has seen a further uptick in the first half of September.

Demand for Ethylenediamine from downstream sectors such as agrochemicals, textiles, and water treatment has surged in both domestic and European markets with the resumption of activities following the holiday period. Chemical purchases, including Ethylenediamine, have risen, while domestic inventories remain low due to slow procurement during August. Additionally, ports in Asia and Europe are still grappling with congestion as shipping volumes grow, contributing to container shortages. This shortage is further exacerbated by the extended transit times required for rerouting ships around the Cape of Good Hope, as stock was not adequately prepared for these delays.

Market analysts predict that Ethylenediamine prices are set to rise further in the coming weeks, driven by the monsoon season and heightened demand from the plantation season in Europe. Similarly, the US market is expected to see a price increase due to growing demand for Ethylenediamine with the start of the plantation season, coupled with potential production disruptions from the impending hurricane season.