Asian Dimethylacetamide Prices Slump to Record Level Amid Oversupplies

Shanghai, China- Asia's Dimethylacetamide markets have attained their biggest losses this week due to decreasing demand, an expansion in supply, and dropping feedstock prices. The significant manufacturing of Dimethylacetamide plants has seen production cuts from suppliers due to the abundant supply and obsolete inventory. Chinese vendors offer bulk shipments at negotiable prices as the trading activity throughout the Asian market dwindles.

With the week ending on 26th May, the Dimethylacetamide price in China declined to USD 1170/ton FOB Nanjing. In terms of price oscillations, Dimethylacetamide providers are hesitant to raise prices for both local and international markets. In the face of recession fear, lethargic demand was the main reason behind lower trading falls in the region. Adding to the scene, an ample supply of Dimethylacetamide, with weak exports from China to India and the Southeast Asian market, resulted in a bearish price trend. Regarding the feedstock market, Acetic Acid and Dimethyl Amine prices remain suppressed with lower purchasing activities and weak cost support from upstream Natural Gas and Methanol.

In the Asian market, the downstream solvent and adhesive market remains affected by feeble market purchasing and limited demand among the suppliers. Dimethylacetamide demand had not shown a solid recovery which hampered sellers' efforts to halt the prolonged bearish trend. The freight market remains weak with the week ending on 26th May with the decline in the Global Container Index by 3%.

According to ChemAnalyst, the Dimethylacetamide market is expected to showcase a bearish market trend in the wake of deter feedstock Acetic Acid and Dimethyl Amine market and cautiously operating downstream ventures. Lackluster demand and falling purchasing activities of Dimethylacetamide will force the suppliers to keep the prices on the lower end. Availability is ample too, and most buyers will avoid purchasing cargo for future settlements. Regarding the freight market, capacity reductions resulting from low container requirements may help stabilize rates for a short-term period. However, if demand exceeds supply, it may contribute to further rate increases.