For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American dimethyl carbonate market continued to encounter challenges. The supply of dimethyl carbonate in the region remained high, with consumption sluggish and procurement levels heavy from previous periods. The domestic automotive industry's demand for dimethyl carbonate remained low, reflecting market participants' cautious approach. Major manufacturers prioritized fulfilling long-term orders, resulting in lower domestic inventories due to slow replenishments.
Furthermore, international trade encountered obstacles during this timeframe, attributable to conflict in the Middle East and drought in the Panama Canal. These factors led to delayed container shipments and increased freight costs. Increasing competition from Chinese electric vehicle (EV) manufacturers further impacted the profitability of US-based EV companies, adding to market challenges.
Additionally, high-interest rates increased the cost of financing, slowing down the adoption of electric vehicles globally. Despite persistent inflation in other consumer goods, the purchase of optional electric vehicles remained slower than anticipated, contributing to the overall bearish sentiment in the North American dimethyl carbonate market.
APAC
In the first quarter of 2024, the pricing environment for Dimethyl Carbonate in the APAC region was largely negative, with prices experiencing a significant decrease. Several factors influenced the market prices during this period. Weak demand from downstream industries, such as battery and polycarbonate manufacturing, has been a major contributor to the downward trend. The sluggish inquiries and limited support from buyers resulted in pressure on overall shipments, leading to a weak market performance.
In China, which saw the maximum price changes, the situation has been similar. The market was majorly characterized by a lackluster performance and a prevailing weak and downward trajectory. The weak demand, along with increased supply from domestic factories exerted pressure on the prices of Dimethyl Carbonate. Additionally, the weakness in the propylene glycol market, which is closely related to Dimethyl Carbonate, also influenced the prices.
Compared to the same quarter last year, the prices of Dimethyl Carbonate have declined by 32%. In terms of quarterly changes, the prices have decreased by 11% compared to the previous quarter in 2024. Overall, the pricing environment for Dimethyl Carbonate in the APAC region has been negative, with prices experiencing a consistent decrease throughout the quarter. As the quarter comes to an end, the latest price of Dimethyl Carbonate FOB Shenzhen in China stands at USD 540/MT.
Europe
During the first quarter of 2024, the Dimethyl Carbonate market in Europe noted various constraints that significantly influenced prices. These challenges mirrored those of the previous quarter, with oversupply being a primary factor leading to reduced demand and subsequently lower prices. The continued sluggish demand from the downstream lithium-ion battery manufacturing sector persisted, as consumers remained cautious amid declining prices.
Additionally, the dominance of the Chinese market in Europe added to the overall bearish sentiment. Chinese electric vehicle manufacturers, like BYD, continued to witness substantial sales growth, surpassing Tesla as the leading global electric carmaker. This increased competition further impacted the profitability of European-based EV companies. However, Belgium stood out as an exception, experiencing a significant surge in sales of battery electric cars with a remarkable growth pace.
Additionally, global trade continued to face problems during this period due to conflict in the Middle East and drought in the Panama Canal, resulting in delayed container shipments and higher freight charges. Despite this, the fierce pricing competition among European, US, and Chinese EV manufacturers persisted. Throughout this challenging period, the market faced multiple shutdowns, resulting in disruptions that directly influenced prices. Despite these obstacles, there were some slight developments in market transactions for Dimethyl Carbonate in Belgium during the quarter.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American Dimethyl Carbonate market demonstrated a mixed trend and the prices fluctuated throughout the quarter. Over three months, the demand outlook remained moderate amid consumers’ reluctance for new purchases and were mainly focusing on long-term orders. In the first month, the demand remained unstable as sufficient material availability was observed in the domestic market.
In November, increased consumer spending and enhanced market activities positively influenced the overall economic landscape. However, downstream industries encountered only modest demand. Despite concerns surrounding a potential recession, inflation, and geopolitical uncertainties, consumer confidence in the US saw growth in both November and December, signaling a positive outlook for future business conditions.
However, the procurement from the battery manufacturing firms was underwhelming due to lackluster demand whereas, the electric vehicle market showcased steady sales throughout Q4 as major players noted increased sales growth month-on-month. Furthermore, the electric vehicle battery market across the globe remained suppressed in Q4 amid tepid demand.
APAC
Dimethyl Carbonate prices in the APAC region remained volatile throughout Q4 2023, primarily due to weak demand from the downstream industries and regular supply. The overall supply remained regular with sufficient material availability in the region. However, the market support from the demand side was inadequate, leading to a bearish market sentiment. The demand from polycarbonate manufacturers was low to moderate, causing a decline in prices by 1.5% in December. In China, the prices of Dimethyl Carbonate declined slightly in the domestic market, continuing the bearish trend week-on-week. However, towards the end of Q4, the market sentiments for Dimethyl Carbonate stabilizer in the domestic market of China, and the prices were assessed at USD 615/MT (FOB Shenzhen). The percentage change in the last year's same quarter price was -34%, while the percentage change from the current to the previous quarter was -5%. The price percentage comparison of the first and second half of the quarter in China was 0%, indicating no significant price fluctuations. The latest price of Dimethyl Carbonate FOB Shenzhen in China in Q4 2023 was USD 615/MT. The primary reasons for the price decline were weak demand from downstream industries and regular supply, resulting in a bearish market sentiment.
Europe
In the fourth quarter of 2023, the European dimethyl carbonate market exhibited a bearish pricing trend influenced by several factors. In October, prices declined due to subdued demand from downstream sectors like electrolyte solvent manufacturing and other end-use industries. Manufacturing production in the Eurozone contracted with a notable drop in new orders, despite a marginal improvement in the manufacturing PMI, indicating a prolonged downturn. The sluggish consumer demand led to eased supply chain operations. Moving to November, prices continued to decline, driven by persistent low demand from downstream industries. The consumer market witnessed ample material availability in the region. Despite a slight improvement in the PMI, manufacturing activities remained on a downward trajectory. Supply chain easing and improved vendor performance were noted amidst subdued consumer demand and limited market transactions.December saw a further decrease in prices due to sustained subdued demand. Downstream industries maintained weak consumer inquiries, resulting in negative market sentiments. High product inventories and destocking activities were evident among consumers. Prices of upstream raw materials dropped, and factory gate deflation persisted. Year-end holidays and destocking efforts contributed to reduced industrial activity, leading manufacturing companies to slow down or temporarily suspend operations.
For the Quarter Ending September 2023
North America
The market sentiments of Dimethyl Carbonate in North America showcased a mixed pricing trend in the third quarter of 2023. Over three months, the demand outlook remained moderate amid consumers’ reluctance for new purchases and were mainly focusing on long-term orders. The first month observed sufficient material availability in the domestic market. However, as per the government GDP data, the economy improved at an increased pace from July to September despite higher interest rates, depleted pandemic savings, and high inflation. Further, the industrial manufacturing output rose to the highest level in months. However, in September, the prices increased slightly as the demand conditions improved. Moreover, amid enhanced consumer spending, businesses across the region showcased positive development in the market. However, the procurement from the battery manufacturing firms was underwhelming due to lackluster demand, whereas the electric vehicle market did not show any signs of improvement. Furthermore, the electric vehicle battery market across the globe remained suppressed in Q3 amid tepid demand.
APAC
The dimethyl carbonate market in APAC demonstrated bearish sentiments in the third quarter of 2023. Various factors, including low demand, fluctuating production costs, and built-up inventories, contributed to the dropping prices of the product. Amidst a decline in consumer demand from the downstream industries of polycarbonate and battery manufacturing, domestic market players have made slight adjustments to their price quotations week-on-week. The availability of the product in the domestic market remained consistent, but purchases have been mainly driven by specific, immediate needs. The domestic inventories saw an uptick due to increased operating rates in certain manufacturing units, resulting in higher supply volumes within the domestic market. On the demand front, consumer inquiries remained at an average level, and purchases were generally aligned with specific demand requirements. The electrolyte solvent market exercised caution in its stocking practices, and the trade environment exhibited stability without significant fluctuations. As of September 2023, the price of dimethyl carbonate was assessed at USD 623 per metric ton.
Europe
Europe’s dimethyl carbonate market exhibited bearish sentiment in the third quarter of 2023. Throughout Q3, the prices plummeted on a week-on-week basis due to sluggish demand from the downstream electrolyte solvent and other end-use industries. However, due to high inflation, higher interest rates, and fluctuating raw materials and energy prices, consumers mostly purchase on a need basis as inflationary pressure continued to loom the business sentiments in the region. The eurozone economy shrank in this quarter as per the surveys done by a few market participants that showed that demand fell at the fastest pace in the past three years amid consumer spending remaining low owing to rising borrowing costs and higher prices. Additionally, the manufacturing sector PMI data suggested a contraction in industrial activity as both outputs in the services and manufacturing sectors declined. However, procurement from battery manufacturing businesses was disappointing due to low demand, while the electric car sector showed no indications of revival. Furthermore, the global electric vehicle battery market remained subdued in Q3 due to sluggish demand.
For the Quarter Ending June 2023
North America
In the US market, Dimethyl Carbonate prices remained robust for a large part of the quarter on the back of firm offtakes from downstream Lithium-ion battery manufacturing, thus playing a crucial role in the EV market globally. As per several sources, new vehicle sales in the US market have grown sharply, highlighting the impact of inflation. Interest rate hikes have had a limited impact on consumer sentiment in Q2. Meanwhile, the sales of Electric vehicles remained brisk throughout the quarter. Several intelligence agencies, including ChemAnalyst, expects that the growth in EVs might have slowed down in the US market. However, the numbers show ample growth in terms of sales and production of EVs. Thus, such upbeat market fundamentals from the downstream Electric vehicle market have catapulted the market dynamics for Dimethyl Carbonate. Several market participants reported active product procurements while inventories declined in the domestic market. After the conclusion of the second quarter, Dimethyl Carbonate prices in the US were assessed at USD 1010-1070 per MT on the back of firm demand sentiment in the domestic market.
APAC
In the Asian region, Dimethyl Carbonate prices declined for most of the second quarter, only showing optimistic signs in the first couple of weeks of the quarter and then recovering towards the last two weeks of June 2023. In April, the prices of Dimethyl Carbonate increased slightly amid tight supply in the Chinese domestic region. The supply dropped in this period as some manufacturing units in the Shandong region were closed for maintenance. Thus, product availability dropped in the region. The demand outlook has remained firm from the downstream polycarbonate manufacturers in this period and the offered quotes for Dimethyl Carbonate FOB Shenzhen. In the second half of June 2023, the offered quotations for Dimethyl Carbonate rose in the domestic market of China owing to limited product supplies and increasing demand. Amidst the Dragon Boat Festival, the demand for the product from the downstream lithium-ion battery manufacturing and other related industries rose, whereas the inventories of the product were limited in the region, due to which an inclining price trend was observed. As per NBS data, the manufacturing PMI rose to 49.0 in June from 48.8 in May but remained under the 50-point mark indicating a contraction. Overall, the supply chain operations were smooth, and in this time frame, no major port congestion or supply-related issues were observed in the region. Hence, the prices of Dimethyl Carbonate FOB Shenzhen settled at USD 745/MT, and Spot ex-Shenzhen settled at USD 710/MT.
Europe
Despite the underwhelming performance of the Construction industry, the performance of the Automotive industry remained uninhibited in the European region. Both Conventional vehicles and Electric vehicles witnessed substantial growth, providing the Lithium-ion battery ample opportunities for growth. Thus, upstream Dimethyl Carbonate prices in the European region witnessed a sharp incline in the second quarter of 2023. As per the European Automobile Manufacturers' Association, in May 2023, the EU car market saw a significant increase in passenger car registrations, with nearly 1 million units, marking more than 18% growth from the previous year. This is the tenth consecutive month of growth. While in the month of June, the EU car market rose to 1 million registered units. The growth rate has been close to 18%, and the prime reasoning has been attributed to the European region's rebound from a low comparison base of 2022 which was marred with vehicle component shortages, particularly semiconductors. Thus, as of June 2023, Dimethyl Carbonate prices in Germany were assessed at USD 985-1030 per MT on FD basis.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the market of Dimethyl Carbonate observed a bearish pricing trend in the US domestic market. In January, the market prices dropped amidst restricted market activities in the Asian region, and the regional market competition dropped amongst the downstream EV manufacturers. In February, the prices tumbled further amidst a wait-and-see consumer market attitude in the region as the Asian market participants reported a drop in electric vehicle sales and built-up inventories, and the downstream consumers were reluctant to place new orders. Whereas in March, due to a decline in new orders and slipping export sales, the market prices of Dimethyl Carbonate slipped down in the region.
APAC
In the first quarter of 2023, the Dimethyl Carbonate market showcased a bearish price trend in the Chinese domestic region. In January, the market prices witnessed a considerable plunge in the offered quotations due to drop-in operating rates at the cathode material manufacturing facilities. Also, the cost support from the feedstock remained on the lower edge in this period. In February, the prices dropped further due to a weaker demand outlook, and the drop in electric vehicle sales led to a wait-and-see consumer attitude in the region. In March, the prices declined further owing to weaker cost support from the upstream Ethylene Carbonate and drop-in market activities in the downstream chemical manufacturing industry. Thus, the prices of Dimethyl Carbonate FOB Shenzhen settled at USD 857 per tonne at the end of Q1 2023.
Europe
In the first quarter of 2023, the overall market prices of Dimethyl Carbonate rode the downward trajectory in the European domestic market. In January 2023, the offered quotes plunged, moving identically to the Asian market. In addition, the rising inflation and energy prices kept the operating rates restricted in the region. In February, the prices dropped due to weaker demand from the Asian market players leading to restricted market activities and uncertainties regarding the economy. In March, the prices dropped further due to lacking market competitiveness from the Asian markets and the wait-and-see consumer market sentiments across the globe. Also, the manufacturing PMI dropped in the European region due to lower input costs and a weaker demand outlook.
For the Quarter Ending December 2022
North America
Overall the Dimethyl Carbonate market in the North American region has observed mixed sentiments throughout the fourth quarter of 2022. This development has been majorly attributed to the fluctuation and uncertainties in the cost support from the upstream, especially after the European Union put a complete embargo on Russian crude oil supplies. At the same time, the slowdown in the APAC EV market has also impacted the regional EV market across the North American region. In addition, the participation of the European players has considerably hindered the availability by pressurizing the value chain. However, the operating rates at the facilities were lowered amidst the disruptions related to extreme weather conditions. As a ripple effect, the DDP USGC discussions for Dimethyl Carbonate were assessed at USD 1138 per tonne in December 2022.
Asia Pacific
Overall, the Dimethyl Carbonate market in the Asian Pacific region observed a persistent bearish trajectory throughout the fourth quarter of 2022. This development has been majorly attributed to the curtailment of consumption as an Electrolyte from the downstream EV industries. That is further coupled with the weakened cost support from the feedstocks, as both the prominent economies of India and China are importing Crude Oil from Russia. In response, the impact of inflation and hiked interest rates remained controlled, leaving the Dimethyl Carbonate market to be dependent on the supply-demand dynamics. Whereas in China, EV sales dropped by considerable margins as compared to the last quarter of 2023, furthermore revocation of the EV subsidy made the battery manufacturers cautious about the excess buying streak. As a ripple effect, the FOB Shenzhen discussions for the Dimethyl Carbonate market in December 2022 were assessed at USD 921 per tonne.
Europe
The Dimethyl Carbonate in the European market has remained on a bearish trajectory throughout the fourth quarter of 2022. This development is majorly attributed to the lack of market competitiveness amongst the market players in Europe. The rising inflation and interest rates have suppressed the demand outlook. At the same time, the high energy costs have forced the producers to drop the operating rates at the manufacturing facilities across Europe. As a ripple effect, the supply-demand dynamics in the domestic market have been hampered substantially. Therefore, the CFR Genoa discussions for Dimethyl Carbonate were assessed at USD 1334 per tonne in December 2022.
For the Quarter Ending September 2022
North America
Overall, the Dimethyl Carbonate market in the North American region has stagnated to staggering downwards during the third quarter of 2022. This development is majorly attributed to consistent restocking practices in the US domestic market to avoid any hurricane-related disruptions. In addition, the cost support from the feedstock has levied a significant impact across the value chain. Although demand from EVs, the Pharmaceuticals and paints industry has consistently supported the producer's will to raise the offered quotations for Dimethyl Carbonate in the US domestic market. As a ripple effect, the DDP USGC discussions for Dimethyl Carbonate were assessed at USD 1438 per tonne in September.
Asia Pacific
In the third quarter of 2022, the Dimethyl Carbonate market in the Asia Pacific witnessed mixed sentiments. This development is majorly attributed to the subdued market activities in the domestic market. At the same time, the downstream facilities' operations remained subdued amidst the rising inflation and power rationing in the Chinese domestic market. At the same time, the power rationing levied a significant impact across the downstream value chain, suppressing the domestic market's overall demand. Although overall demand improved by the end of the quarter but remained restricted as the new energy reforms presented by the Chinese authorities concluded a restricted amount of energy. In response, it impacted the operations but remained restricted in the Chinese domestic market. As a ripple effect, the FOB Shenzhen discussions for Dimethyl Carbonate were assessed at USD 1168 per tonne in September.
Europe
The Dimethyl Carbonate market in the European markets was bearish in the first half of the month, whereas the latter half remained stagnant. The economics and commercial activities remained subdued for the majority of terms amidst the summer holidays in the European markets. In addition, the market activities rebounded in September. In addition, the EUR depreciated against the USD. However, the domestic market is clouded with numerous uncertainties as inflation soared to historic highs that suppressed the market dynamics in the domestic market. As a ripple effect, the DDP Antwerp discussions for Dimethyl Carbonate were assessed at USD 1326 per tonne in September.
For the Quarter Ending March 2022
North America
In the first quarter of 2022, the prices of Dimethyl carbonate remained firm to increase in the North American market. The feedstock Methanol values increased in the domestic market during Q1, which increased the production cost of Di- Methyl Carbonate. The demand remained consistent from cleaning agent industries in Q1 2022. After the cop 26 Glassgow conference, the cleaner energy initiatives rose the demand for EV vehicles, which increased Di – Methyl carbonate demand in the US market. The values rose further in the second half of the quarter after inflation in Crude Oil prices, impacted by the war between Russia and Ukraine.
Asia Pacific
The price trend of Di-Methyl Carbonate fluctuated in the Asian market along with shifting feedstock Methanol values during the first quarter of 2022. The prices decreased in the Chinese market due to China’s zero covid policy, but demand from the Automotives sector was consistent. However, the values of Di-Methyl carbonate rose in the Indian market due to increased EV vehicles demand in the automotive sector, especially in the H2 of the first quarter. Disruption in the supply chain and inflation in crude oil prices impacted the raw material supplies and production cost of Di-Methyl Carbonate in the region more significantly.
Europe
The values increased in the European market amid the high demand for downstream EV vehicles, which elevated the demand for Di-Methyl Carbonate in these industries, impacting the prices during the first quarter of 2022. High energy values throughout the quarter impacted the production rates in the region. However, feedstock Methanol prices were stable in the market. Due to this, uncertainties in the product supplies to the market escalated the prices in Q1. Also, disruption in the supply chain, significantly in March after the war in the East-European region, further added numbers to the values of Di- Methyl carbonate in the domestic market.
For the Quarter Ending December 2021
North America
In the fourth quarter of 2021, the Di-Methyl Carbonate market witnessed a mixed trend despite that the sentiments in the US domestic market remained high throughout the quarter. Since the COP 26 Glasgow conference, the demand witnessed a huge spike as the players were invested in the cleaner energy initiatives of the EV sector. Therefore the demand outlook outstrips the domestic supply potential. However, the deficit was cleared after the Chinese cargoes resumed, although the high freight charges induced adequate cost support to the imported materials. Whereas, driven by the exceptional demand the offers for Dimethyl Carbonate remained buoyed in the US domestic market.
Asia Pacific
The Dimethyl Carbonate sentiments in the Asia Pacific market witnessed a mixed trend due to the strict implementation of environmental protection policy in China coupled with the high charges and limited availability of freight vessels in the region. In the first half due to the dual control on energy consumption and power rationing, the operational rates at the Chinese manufacturing plants dropped drastically led to the supply glut and higher raw material costs. Whereas, in the second half after the power rationing the offers for DMC separated its dependence on the prices of raw material and the offers in the domestic market plunge. As a ripple effect, the offers plunge and FOB Shenzhen discussions for DMC settled at USD USD 1570 per tonne, during the quarter ending.
Europe
in the fourth quarter of 2021, the DMC market in the European domestic market witnessed mixed sentiments throughout the quarter. The offers eased after soaring to the all-time high due to the high freight charges and limited availability of freight vessels. Whereas the domestic operational loads were curtailed amidst the ongoing energy crisis in Europe. The demand side support remained buoyed especially after the COP 26 conference the players were rushed to ensure the long-term supplies of electrolytes for EV batteries.
