In the Asian market, Dimethyl Amine (DMA) prices experienced a notable decline by last week of August. The decrease in the DMA price is primarily due to reduced output from manufacturers in response to lower downstream demand, as ample inventories were available. The feedstock market remained stable, offering no significant price shifts, which tempered DMA pricing dynamics in the region. Meanwhile, supply chain disruptions across European routes led to rising freight costs, prompting suppliers to slightly increase their export quotations to address supply-demand imbalances. These combined factors have collectively impacted DMA pricing on a global scale, reflecting the delicate balance between stable feedstock costs, fluctuating demand, and logistical challenges.

In the German market, DMA prices have continued to rise this week to 3150 USD/MT FOB-Hamburg, influenced by several key factors. Despite stable Ammonia prices, Methanol, a crucial feedstock, saw a 4.0% increase in last 2 weeks. BASF, a major player, reported stronger earnings from its chemical businesses, although its Agricultural Solutions segment faced significant declines. The Chemicals segment achieved a 6.0% sales increase year-over-year, totaling €2.8 billion. However, Germany's industrial sector remains under pressure, with manufacturing production declining in July and no recovery in sight. The Ifo Business Climate indicator fell for the third consecutive month to 87, while PMI numbers also dipped, signaling weak economic activity. The rise in DMA prices is primarily due to a marginal deficit in inventory management among market participants.

In the Indian market, DMA prices have decreased as of last week of August. This decline comes despite notable highs in Ammonia prices, which saw extended buildup activities, while Methanol prices remained stable. Balaji Amines, a major producer, reported Revenue from Operations at ?393 crore for Q1FY25, down from ?423 crore in Q4FY24, reflecting a 17.02% decrease in sales compared to the previous year. Total volumes for Q1FY25 were 28,071 MT, with Amines at 7,401 MT and Amines Derivatives at 8,299 MT. The company's Methylamine project is progressing as scheduled, with commissioning expected by December 2024. Although the demand outlook remains generally positive, modest actions by suppliers have contributed to the decrease in DMA prices in the Indian market.

According to ChemAnalyst's anticipation, DMA prices are expected to exhibit bearishness in the upcoming sessions within the Asian market. This projected decline in the DMA price is mainly driven by anticipated lower production volumes from manufacturers and weaker price actions, as market participants are hesitant to place large bids for bulk inventory accumulation. These factors are collectively expected to influence the pricing dynamics of DMA, leading to further price declines as the market responds to reduced demand and cautious purchasing behavior.