As of the last week of October, the global market price of Dimethylamine (DMA) saw a notable increase. This rise in the DMA price is primarily attributed to strengthened demand from downstream markets, alongside significant upturns in feedstock costs, particularly Ammonia and Methanol. Suppliers are facing an imbalance in the supply-demand ratio, resulting in a marginal upward adjustment in DMA prices. This supply deficit, combined with heightened raw material prices, continues to exert upward pressure, supporting the recent price gains in the DMA market.

In China, DMA prices showed a marginal rise, now positioned at 770 USD/MT FOB-Dalian, following a period of consecutive price reductions. This slight uptrend in the DMA price aligns with suppliers gradually increasing inventory levels coupled with the increase in the price of the feedstock, majorly Ammonia and Methanol. Over the past two weeks, the price of Ammonia witnessed a notable increase of 1.7%, and Methanol saw a 0.7% increase. With these adjustments in raw material costs and a cautious buildup in DMA stocks, market actions suggest a conservative approach by suppliers to stabilize prices, preventing further volatility. This combination of supply and feedstock dynamics provides a basis for the marginal rise in DMA pricing.

In the U.S. market, the price of DMA rose to 3050 USD/MT DEL-USGC amid a strengthening recovery across key sectors, particularly agriculture and pharmaceuticals. This uptrend in DMA prices was driven by an increase in ammonia costs, a critical feedstock for DMA, elevating production expenses. In mid-October 2024, North American ammonia prices climbed 2.7% over the past two weeks due to high natural gas costs and weather-induced shutdowns causing supply shortages. Major facilities, including those operated by LSB Industries and Nutrien, halted production, further tightening supply. Additionally, recent forced shutdowns at key ammonia production facilities due to hurricanes have reduced domestic production capacity, constraining the volume of ammonia available in the market. Alongside this, logistical issues such as port delays and limited transportation options are disrupting the ammonia supply chain to downstream sectors. These complications are creating localized supply shortages and intensifying price pressures across the market. Methanol supply, however, has remained stable, ensuring steady availability for secondary input requirements. Market participants are implementing upward price adjustments for DMA in response to recovering demand in downstream sectors and increasing ammonia costs. As the economic landscape stabilizes, DMA producers are adjusting prices to balance these rising production costs and meet the growing sector demands, supporting the continued upward price trend.

ChemAnalyst forecasts a bullish outlook for DMA prices in the coming sessions, largely driven by anticipated inventory buildup from suppliers. This approach targets a predicted demand-supply gap expected to continue in the near term. Through proactive inventory management, suppliers aim to maintain stable availability, likely pushing prices upward amid this projected imbalance.