Shanghai (China): In the last few weeks, the price of Dimethyl Sulphate in Asia maintained its bullish trend due to increased downstream demand and supply disruptions in China. The rise of Dimethyl Sulphate was further supported by higher feedstock sulphuric acid costs and elevated crude oil prices. In China, while average new home prices in 100 cities increased in March, total sales by value among 100 real estate companies saw a significant year-on-year decline in the first quarter, highlighting ongoing challenges in the sector. DOW's Q1 2024 results showed an uptick in coatings net sales, driven by increased volumes in the building and construction end-markets across various regions, demonstrating the resilience and growth potential of the construction sector within the global petrochemical landscape. The purchasing power of downstream products showed gradual recovery, supported by higher sulphuric acid and energy prices. Surges in crude oil prices, fueled by positive US demand data and Middle East geopolitical tensions, further inflated Dimethyl Sulphate production costs. Incidents such as attacks by Lebanese Hezbollah and Yemen's Houthi group, along with US sanctions on Venezuela and potential interest rate cuts by the US Federal Reserve, continued to impact global oil prices and the petrochemical industry including Dimethyl Sulphate.

In China, the overall operating rate surged to around 78%, indicating increased industry activity. However, adverse weather conditions, such as heavy rains and floods in southern China, particularly in Guangdong province, disrupted the supply chain. These challenges, coupled with power outages and production facility closures in the Pearl River Delta, a key petrochemical manufacturing hub, led to supply shortages and pushed up Dimethyl Sulphate prices. As the Labor Day holiday approached (May 1-5), heightened procurement activity was observed toward the end of April. Despite a slight easing, China’s manufacturing growth remained robust in April, indicating strong trading activity. Modest upticks in input costs from higher raw material and labor expenses were noted. Additionally, global average shipping container rates rose for the first time since January, further contributing to price increases.

Dimethyl Sulphate prices in the Indian domestic market-maintained strength, supported by robust demand from downstream industries such as paint, coating, adhesive, and others, notably driven by the automotive and construction sectors. India's top eight cities witnessed remarkable growth in the real estate market, with a notable 9% surge in home sales during the first quarter of 2024. Additionally, the automotive sector continued to display strong demand for Dimethyl Sulphate and paint and coating products, with companies like Bajaj Auto and Mahindra & Mahindra contributing to this upward trajectory. BASF's first-quarter results for 2024 indicated a modest recovery in the global Dimethyl Sulphate and chemical industry, especially within the Dimethyl Sulphate Petrochemicals division, driven by increased growth compared to overall industrial production. As of April, the assessed price for Dimethyl Sulphate stood at INR 42,900/MT Ex-Mumbai, marking a 4.8% increase compared to March 2024.