Dimethyl Sulphate (DMS) prices in Asia continued to increase consistently in June 2024, driven by high demand and elevated feedstock sulphuric acid prices. This upward trend has persisted for months, further intensified by robust ocean freight rates and tight vessel capacity. A significant year-on-year increase in regional market sales registrations in June 2024 boosted demand for paint and coatings in the construction sector. The agrochemical sector also saw high demand for DMS, spurred by the monsoon season in India. Elevated upstream crude oil prices, which rose by 6% in June due to OPEC+ cuts and increased US summer fuel demand, further escalated production costs. The weekly 2.6% decline in US commercial crude inventories added to these expenses. Another important facet impacting the final price dynamics of DMS is inclusive of the geopolitical tensions, severe weather risks, which contributed to the bullish oil market sentiment, sustaining the upward pressure on DMS prices.

India's manufacturing sector showed significant improvement in June, driven by strong demand that fueled expansions in new orders, output, and purchasing activities. On the energy front, persistent rains in China caused the coal market to remain sluggish, impacting thermal coal transactions at northern ports. Despite the lower coal prices, high feedstock and upstream crude oil prices kept production DMS costs elevated. Additionally, feedstock sulphuric acid prices remained high throughout June due to robust demand in the agrochemical sector.

Rising freight and container costs amidst ongoing logistics challenges and a seasonal surge in demand have exacerbated the price increase. China's real estate market showed signs of stabilization with favorable policies, contributing to a 36.3% month-on-month increase in sales for the top 100 real estate companies, although cumulative sales remained 40% lower year-on-year. In India, housing sales reached an 11-year high in the first half of 2024, with Mumbai and Kolkata leading in sales volumes and growth rates. Despite affordability concerns in certain segments, market sentiment remains cautiously optimistic, supported by strong sales figures. These factors collectively contribute to the upward pressure on DMS prices, reflecting the interplay between robust demand, logistical challenges, and broader economic trends.

According to ChemAnalyst, DMS prices are expected to decline in the upcoming months due to several factors impacting the market. Logistics issues have led to oversupply in Asia, while resumed operations at previously shut-down plants are bolstering supply levels. Additionally, lower energy prices are contributing to the anticipated decrease in DMS prices. These factors collectively indicate a potential downward trend in DMS prices in the near term.