The Dimethylamine (DMA) market in Asia observed a price decline in December. This decrease in the DMA price is driven by supplier actions to manage ample inventories amid fluctuating feedstock dynamics, with ammonia prices decreasing while methanol experienced a marginal rise. Positive demand from downstream sectors was insufficient to offset the oversupply conditions and limited purchasing activity, which exerted downward pressure on prices. Suppliers adopted competitive pricing strategies to clear stock levels, further contributing to the declining DMA price trend in the region.

As of mid-December, DMA prices in China declined in mid-week of Dec. This decrease in the DMA price is driven by multiple market factors. As per the current market situation the Chinese players are currently engaged in the dumping of the inventories due to oversupply the manufacturers are selling at lower price due to which the price of DMA is falling down thereby creating the competition across the global market. The supply of DMA in the Chinese market remains ample, supported by adequate raw material availability and steady supplier logistics. Overcapacity among manufacturers has intensified market competition, influencing pricing strategies. According to Statistics China, China exported 490.864 MT of Methylamine (including Dimethylamine, Trimethylamine, and their salts) in October, reflecting a 2.8% month-on-month decrease. These factors, combined with oversupply and supporting feedstock costs, have shaped the current pricing trends for DMA in the Chinese market.

As of mid-week of December, DMA prices in the Indian market have decreased. This DMA price drop is primarily attributed to a marginal decline in the cost of the key feedstock ammonia, while methanol prices have seen a slight increase. Demand from the agrochemical sector remains underwhelming, contributing to ongoing downward pressure. Balaji Amines reported a 9.9% decline in sales volumes for Q2FY25, with total sales revenue reaching 347 Cr and production volumes dropping from 28,071 MT in Q1FY25 to 26,348 MT in Q2FY25. Additionally, the commissioning of Balaji Amines' Methyl Amine plant in November, which is projected to reach full utilization by FY27E, is expected to influence supply trends further. These factors, alongside lower sales volumes, declining demand, and stable feedstock conditions, continue to weigh on DMA prices in the Indian market.

As per ChemAnalyst's anticipation, DMA prices are expected to demonstrate bearish trends in the forthcoming sessions. This anticipated decline in the DMA price is likely to be influenced by a reduction in feedstock costs, particularly ammonia, coupled with weaker supplier actions in managing inventories. The combination of lower input costs and insufficient adjustments to inventory levels is projected to put additional downward pressure on DMA prices, reflecting a challenging market environment ahead.