The price of Dimethyl Amine (DMA) has experienced a downward trend in March 2024. This decline in the DMA price is mainly attributed to the decrease in the price of the feedstock, particularly Ammonia, while Methanol witnessed a surge in price. Market participants anticipate the continued destocking of inventories, resulting in minimal bidding for fresh accumulations this month. Additionally, lower demands from the overall downstream market have created an imbalance in the demand and supply ratio, leading to a surplus in inventories. These key factors have significantly influenced the demand for DMA in the market.

In the European market, the price of DMA witnessed a notable decline in March. This decline suggests that market participants have ample DMA inventories compared to the overall demand in the downstream sector. The continuous price surge observed until November has indicated a sense of destocking, leading to the decrease in the price of DMA. According to the Federal Statistical Office, the Consumer Price Index (CPI) in Germany increased to 118.60 points in March from 118.10 points in February 2024, marking an overall increase. However, Germany's manufacturing sector ended the opening quarter of the year still mired in contraction territory. While business expectations towards future output turned positive in March, weak demand conditions contributed to further factory job losses and a sustained drawdown of pre-production inventories.

There's a moderate demand for DMA observed from the Pharma sector, as indicated by the performance of indices such as DAX Pharmaceuticals & Healthcare (CXPPX). However, the Agrochemical sector is experiencing a lower run, leading to decreased performance in the Polymer & Rubber and Dyes & Pigments market. This lower performance in the Agrochemical sector is simultaneously affecting the demand for DMA in the German market. Overall, while there is moderate demand from the Pharma sector, the lower performance in the Agrochemical sector is impacting the demand for DMA. This highlights the interconnectedness of various industries within the chemical sector, where fluctuations in one sector can have ripple effects on others.

In the US market, the price of DMA witnessed a declining trend in March. In the downstream market, the pharmaceutical sector is experiencing strong demand, while the Rubber and Polymer market is showing signs of positivity. However, the Agrochemical sector is currently underperforming, and there is moderate demand witnessed from the Surfactant and Detergent market. According to the U.S. Bureau of Labor Statistics, the consumer price index (CPI) in the United States increased by 3.5% year-over-year to 312.332 points in March 2024. This rise follows a 3.2% increase in February and slightly exceeds the market consensus of a 3.4% advance.

As per the ChemAnalyst’s anticipation the price of the DMA is expected to showcase bearish trend in the European market. This anticipation aligns with the overall demand from the downstream market which is not influencing the requirements of DMA and the current destocking of the inventories from the supplier’s end will cumulatively result into the fall in the price of DMA are the market is witnessing the ample of inventories. Nevertheless the US market is showing the sign of improvement in the downstream market which may influencing the DMA price to inch upward in near term.