Dimethylacetamide Market in China Shows Modest Recovery Amidst Growing Economic Support

Nanjing, China: The Dimethylacetamide market in China has been predominantly bearish, but during the week ending November 15, it experienced a slight uptick. This improvement in the Dimethylacetamide market was driven by government support and a modest rise in production costs, providing some relief to the market amidst its overall downward trend.

During the week ending November 15, the Dimethylacetamide market in China experienced a slight price increase of 0.5%, reaching USD 895/MT (FOB-Nanjing). Despite this marginal incline, the overall market sentiment of Dimethylacetamide remained bearish. The price improvement was primarily attributed to rising production costs of Dimethylacetamide, as the feedstock Dimethyl Amine exhibited bullish pricing trends, offsetting the bearishness in the Acetic Acid market. The modest demand for Dimethylacetamide from downstream sectors like Pharmaceuticals and Construction also contributed to the trend, although it was not a significant driver. The production cost escalation acted as a key catalyst for the price rise, while the construction sector showed signs of recovery due to Beijing's latest stimulus measures. These measures, aimed at stabilizing the real estate market and boosting demand in residential construction, have begun to yield results. October saw an improvement in property transactions, especially in key cities like Beijing and Shanghai, surpassing September's figures for the first time since 2007. This growth reflects the Chinese government's efforts to revitalize the housing sector, which directly supports industries like Dimethylacetamide by creating a more stable economic environment and encouraging broader consumption trends.

In terms of economy, China announced a 10 trillion yuan ($1.40 trillion) debt package to alleviate local government financing challenges and support its slowing economic growth. This move comes amid renewed pressures following Donald Trump's re-election as U.S. president. The package focuses on repairing municipal balance sheets as a long-term strategy, rather than injecting funds directly into the economy, aiming to address structural fiscal issues while stabilizing growth.

In response to the U.S. election and escalating trade risks, China's cabinet approved measures to expand export credit insurance and enhance support for trade firms, as reported by state media CCTV. Meanwhile, local governments burdened by high debt and declining revenues have reduced civil servant wages and accumulated debts with private companies. This has strained money flows to the real economy, exacerbating deflationary pressures and highlighting the challenges in balancing fiscal stability with economic growth.

According to ChemAnalyst, the Dimethylacetamide market in China is expected to improve in the coming weeks, driven by a recovery in the downstream Construction sector. Increased activity in residential and infrastructure projects may bolster the Dimethylacetamide demand and stabilize market conditions.