Global Dimethyl Amine (DMA) Prices Stable Amid Unchanged Supply-Demand Dynamics

In the global market, the price of Dimethyl Amine (DMA) remained stable in the first half of May. This stability in the DMA is mainly due to the unchanged demand and supply ratio from suppliers. In the feedstock market, Methanol prices have remained stable, while Ammonia prices have continued to decline. The downstream market is experiencing lower demand and sales, resulting in no significant changes in the inventories accumulation during this period. Together, these elements have played a role in maintaining the stability of DMA prices worldwide.

In the US market, DMA prices stabilized in the first half of May. Methanol contract sizes experienced a notable increase of 3.18%, while Ammonia prices saw a 4.30% rise in the feedstock market by the end of April. Despite these increases, the US chemical sector has yet to fully recover. Major producers such as Eastman, Huntsman, Exxon Mobil, and BASF reported declines in Q1 results due to destocking and lower spreads across product selling prices. The ISM Manufacturing PMI in the United States fell to 49.2 in April 2024 from 50.3 in the previous month, missing market expectations of stabilization. The DMA supply remained adequate. According to the Xeneta Shipping Index, US imports experienced a significant decline in April, with the XSI falling by 9.4% to 150.6 points. This marks a substantial 67% decrease compared to April last year, when it was at 451.5 points, and is the lowest point the index has reached since April 2021. Numerous US shippers adhere to one-year contracts starting from May 1st to April 30th, causing notable fluctuations in the index between April and May. In the US downstream market, demand for DMA in the Agrochemical sector has weakened, while there has been a slight uptick in the Personal Care sector. However, demand in the Pharmaceutical and Paints & Coatings sectors has remained supportive.

In the German market, DMA prices halted at 3120 USD/MT FOB-Hamburg with the week ending on 17th May. In the feedstock market, Methanol prices remained stable, while Ammonia prices declined by 1.3% in April. BASF and International Process Plants (IPP) have reached an agreement to market ammonia, methanol, and melamine plants at BASF’s Verbund site in Ludwigshafen, Germany. BASF will continue ammonia and methanol production at other assets within the Ludwigshafen site. This agreement covers integrated production assets for ammonia (380,000 metric tons/year), methanol (165,000 metric tons/year), and melamine (51,000 metric tons/year). However, BASF's Q1 sales volume has declined due to lower demand and destocking activities from suppliers, as reflected in its financial reports. Goods producers have also reduced purchasing activity to align with lower production requirements, depleting DMA inventories accordingly. This adjustment in purchasing strategies is a direct response to the current market conditions, aiming to balance supply with the reduced demand.

According to ChemAnalyst, the price of DMA is expected to showcase a bearish trend in the upcoming sessions. This anticipation is primarily linked to the projected lower prices of Methanol and Ammonia in the near future. The sufficient availability of DMA inventories, coupled with lower demand, is likely to lead to reduced production of DMA. These factors will play a key role in influencing the price of DMA in the upcoming sessions, contributing to the expected downward trend.