As of the last week of November, the price of Dimethylamine (DMA) in the Asian market saw a notable decrease. The lack of proactive stock adjustments amidst fluctuating supply-demand dynamics allowed excess stock to accumulate, leading to downward price pressure in the DMA price in the asian market.

As of November ending, DMA prices in the Indian market decreased to 46,500 INR/MT Ex-Solapur. On the manufacturer front, Alkyl Amine reported volume growth of around 8% to 10% for H1 FY25, with Q2 FY25 showing a notable 17% year-on-year increase. The company anticipates exceeding 10% volume growth for FY25. Although India's manufacturing sector showed improvement with a rise in PMI, business confidence declined. Despite temporary fluctuations in supply-demand dynamics, the market remains tight due to pressure from the Chinese market. Despite ongoing production cost and supply chain issues, the overall pricing remains consolidated due to a balanced demand and supply ratio from the past few sessions.

In the Chinese market, DMA prices stood at 750 USD/MT FOB-Dalian, reflecting a consistent downward trend primarily attributed to declining ammonia costs. The fall in ammonia prices was driven by increased supply following the resumption of operations at maintenance facilities and higher conversion rates from urea to ammonia. Weak demand from both agricultural and industrial sectors further intensified the oversupply, exerting additional pressure on prices. Chinese manufacturers have ramped up exports of various chemical products, including DMA, which has disrupted global market dynamics. This aggressive export strategy has squeezed producer margins, leading the US and European nations to implement antidumping duties on certain chemical imports, including aliphatic amines such as DMA, further affecting market conditions. Despite these challenges, the downstream agrochemical sector continues to exhibit moderate demand for DMA. However the depleting currency is hammering the overall margins of the manufacturers. On the logistics side, freight rates from the Far East to Europe remained stable throughout November, while shipping costs to the US decreased, providing some relief to global DMA transportation expenses. However, the total export volume of aliphatic amines, including DMA, witnessed a decline in October, signaling potential adjustments within the supply chain.

According to ChemAnalyst's projections, DMA prices are expected to trend downward in the near future. This forecast in the DMA price is largely due to the anticipated market oversupply, coupled with weaker supplier actions in managing inventories. Additionally, balanced freight charges will play a crucial role in shaping DMA's overall pricing dynamics in the coming sessions.