DMA Price declines in US and Europe, Surge in Asia Amid Supply-Demand Imbalance

In the global market, notably in the US and Europe, the price of Dimethylamine (DMA) experienced a notable decrease by mid-June, contrasting with a surge in the Asian market. This divergence in the DMA price reflects regional supply-demand imbalance, influenced by varying production rates, feedstock availability, and economic conditions. As North American and European markets see reduced costs, Asian markets grapple with heightened demand and limited supply, driving DMA prices upward.

In the Chinese market this week, the price of DMA witnessed a rise as of mid-June. Meanwhile, Methanol prices declined by 1.33% and Ammonia prices fell by 4.11% from the start of June, driven by decreased bidding activity from market participants. Instability in the international Methanol market affected import volumes, prompting suppliers to engage in marginal bidding to build inventories. This strategic inventory management has been crucial for suppliers navigating production constraints to meet both domestic and international demand. Despite fluctuating feedstock supplies, positive market sentiment and active supplier engagement have supported the upward price trend of DMA. Tight supplies of Methanol and Ammonia have influenced DMA production management. According to the General Administration of Customs People's Republic of China, total exports of aliphatic amines from China reached 765.434 metric tons in April, a significant increase of 121.99% from March, reflecting higher overseas bidding activity.

In the German market, DMA prices increased in mid-June, while Ammonia prices fell by 2.22% and Methanol rose by 8.02% from the start of June. This shift was driven by reduced demand from downstream sectors and a lack of supplier bids aimed at inventory build-up. Adverse weather conditions, including severe windstorms and floods, disrupted agricultural operations and reduced fertilizer demand, exacerbating the decline. Demand for DMA from the agrochemical and pharmaceutical sectors remains underwhelming. Although the rate of decline in purchasing activity was the slowest since September 2022, it still outpaced the decrease in output levels. According to the Federal Statistical Office, the European Central Bank is expected to lower key interest rates by 25 basis points at its June 2024 meeting, reducing the main refinancing operations rate to 4.25%, the deposit facility rate to 3.75%, and the marginal lending rate to 4.5%. Meanwhile, Germany's Consumer Price Index (CPI) increased to 119.30 points in May from 119.20 points in April 2024.

As per the ChemAnalyst, the price of the DMA is expected to showcase positive momentum in the upcoming sessions. This anticipation in the DMA price is primarily linked to the recovering demand from the domestic and the overseas market. However the suppliers activeness in the accumulation will also be the key factor in stimulating the DMA price towards upside. However the stable to bearishness movement is expected in the European market as the underperformance in the downstream market will influence lower demand for the DMA in the upcoming sessions.