Global Dimethyl Amine Market witness challenges Amid Shifting Downstream Demand and supplier’s action.

Throughout the initial week of February, there has been a sustained stability in the worldwide market value of Dimethyl Amine, extending a trend initiated in the third week of the previous month. This steadiness in prices is predominantly linked to the decline in Ammonia prices, combined with a persistent stability in Methanol expenses. The present market scenario involves destocking activities, prompting suppliers to exercise prudence in accumulating new inventory. These prominent factors have distinctly impacted the pricing dynamics of Dimethyl Amine, shaping the prevailing trend.

In the US market, there is a divergence in sectoral performance affecting the demand for Dimethyl Amine. The Pharma sector is thriving, indicating heightened demand for pharmaceutical products, while the Agrochemical sector shows moderate to lower performance, directly impacting Dimethyl Amine demand for herbicides, fungicides, and insecticides. The surfactant sector experiences moderate performance. Conversely, the Automobile industry's robust growth is fuelling demand for Rubber production, a key factor driving the overall demand for Dimethyl Amine. The economic upswing contributes to increased retail consumption, aligning with the upward trend in the Purchasing Manufacturing Index (PMI) data.

The Asian market prominently leads the global Dimethyl Amine business, with demand from the Pharma and Agrochemical sectors remaining subdued. The Surfactants, Dyes and Pigments sectors are experiencing a moderate to low performance. Suppliers are grappling with excessive inventories, leading to an ongoing destocking trend in the Dimethyl Amine market. These dynamics have notably influenced the price of Dimethyl Amine, driving it to the lower side. As of the last week of January, from the 2nd week of January, the price of Dimethyl Amine stood at 737 USD/MT FOB- Dalian.

The European economy is currently encountering difficulties, notably with reduced performance in key sectors such as Agrochemical, Dyes and Pigments, and Pharma. Geopolitical tensions in the European region, particularly in the Red Sea, have caused substantial disruptions in the supply chain across these sectors. In response, numerous companies are redirecting their shipping routes, leading to a notable increase in freight charges. The overall decreased performance in the downstream market, combined with the intricate dynamics of the supply chain, has resulted in an imbalance in the supply and demand dynamics. This, in turn, is impacting the pricing of Dimethyl Amine in the European region.

As per ChemAnalyst's projections, Dimethyl Amine prices are forecasted to undergo a moderate performance in the US market, propelled by a positive outlook in sectoral performance. Conversely, a stable to declining trend is expected in the Asian region, primarily due to supplier activities involving the destocking of inventories. Despite the anticipation of improvements in the downstream market, the feedstock market is aligning with a moderate to lower side trajectory in effect with stability in the Crude oil prices affecting the Methanol and Ammonia production cost, influencing the Dimethyl Amine prices in the upcoming sessions.