Texas (USA): After mid-May 2024, Dimethyl sulphate (DMS) prices in the USA continued their upward trajectory due to several key factors. The price increase was primarily driven by increased raw material costs, robust local demand, and expanding export opportunities. These factors collectively bolstered prices across the DMS market, particularly impacting downstream sectors such as paints, coatings, and other industrial applications. Concurrently, concerns over geopolitical tensions, notably the Hamas-Israel conflict, contributed to a spike in crude oil prices, disrupting global oil supplies and pushing container shipping rates higher. This situation was exacerbated by logistical challenges like limited container availability and rerouting around the Red Sea, compounding overall price hikes in the petrochemical sector.

Amidst these dynamics, the USA's manufacturing sector showed resilient growth during May 2024, surpassing long-term averages despite weather-related disruptions affecting factory operations. Strong demand and effective marketing efforts drove new orders upwards, although the pace of growth was moderated by external uncertainties. The sector faced significant cost pressures, particularly from elevated feedstock sulphuric acid prices driven by heightened demand downstream. Intensified procurement efforts aimed to mitigate supply chain disruptions and manage the high demand for DMS, while low feedstock inventories further exacerbated production costs. Simultaneously, spot container freight rates experienced an upward trajectory due to geopolitical tensions and seasonal spikes in cargo volumes, compounded by mounting port congestion in critical hubs. These logistical challenges added additional costs and complexities to the supply chain, impacting the pricing of DMS and other petrochemical products. Despite these hurdles, demand for DMS within the USA surged notably, driven by robust requirements in the paint and coating industries. The sector benefited from a substantial increase in vehicle sales during May, marking a 7.6% month-on-month rise with 15.9 million units sold. This uptick in consumer spending and industrial activity, coupled with positive market sentiments and holiday incentives, further boosted procurement activities within the paint and coating sectors. Moreover, USA's export growth, as indicated by the latest trade data, further bolstered demand for DMS in the domestic market of USA.

As per the ChemAnalyst, DMS prices are anticipated to rise significantly due to strong domestic demand following the return to normal weather conditions. High energy prices will also drive-up production costs of DMS, while sustained demand from the paint and coating industry as a key additive will further bolster prices. Global economic indicators and industrial expansions are expected to support continued strong demand for DMS, alongside improvements in the manufacturing sector and increased trading activities.