For the Quarter Ending September 2024
North America
In Q3 2024, Dimethylacetamide (DMAC) prices in North America experienced an upward trajectory, with the USA observing the most significant price hikes. This growth stemmed from a combination of factors affecting market dynamics, notably supply constraints and heightened demand from critical downstream sectors. Labor strikes and natural disasters played a pivotal role in tightening the supply of DMAC across the region, as these disruptions impacted both production and transportation channels. This scarcity exerted considerable upward pressure on DMAC prices, with manufacturers struggling to maintain supply amid restricted availability.
Adding to the strain, the Pharmaceutical sector, a primary consumer of Dimethylacetamide, witnessed a surge in demand during the quarter. The pharmaceutical industry which depends on DMAC in various applications, placed additional pressure on an already limited supply and further elevated prices. Feedstock prices for Dimethyl Amine and Acetic Acid, both essential inputs in DMAC production, experienced steady growth throughout Q3, driving up production costs and reinforcing bullish sentiment in the DMAC market.
The combination of supply constraints, strong demand from the pharmaceutical industry, and rising feedstock prices created a tight market environment. Consequently, DMAC prices climbed as suppliers adjusted quotations to reflect these challenging conditions, establishing a notably bullish outlook for the US market in Q3.
APAC
The third quarter of 2024 has been characterized by a persistent downward trend in Dimethylacetamide pricing across the APAC region, with notable influences impacting market prices. Factors such as weakened demand from key downstream sectors, particularly the construction and pharmaceutical industries, have contributed significantly to the declining prices. However, the fluctuations in production costs due to mixed feedstock prices, notably Dimethyl Amine and Acetic Acid, have kept pricing pressures on Dimethylacetamide. In China, the market has experienced the most significant price changes, with a -9% decrease compared to the same quarter last year. The correlation between price changes and seasonality has been evident, with a -7% change from the previous quarter in 2024 and a -4% difference between the first and second half of the quarter. The latest quarter-ending price of USD 950/MT of Dimethylacetamide FOB-Nanjing in China reflects the prevailing negative sentiment in the pricing environment, showcasing a consistent decrease in market prices throughout the quarter.
Europe
In Q3 2024, Europe’s Dimethylacetamide (DMAC) market faced a marked decline in prices, reflecting a challenging environment shaped by subdued demand and economic uncertainty. Downstream sectors, especially Pharmaceuticals and Construction, witnessed weakened activity due to ongoing economic pressures and reduced consumer spending, resulting in lower demand for DMAC. This decline in usage across critical sectors created an oversupply situation, which intensified the downward pressure on DMAC prices. Interestingly, feedstock prices for Dimethyl Amine and Acetic Acid, essential raw materials for DMAC production, experienced steady growth during the quarter. Rising costs for these inputs pushed up production expenses, yet producers struggled to transfer these costs to end-users amid the unfavorable market sentiment. Consequently, the disconnect between production costs and selling prices weighed on profitability, compelling market players to offer competitive pricing to stimulate limited demand. The result was a bearish pricing environment for DMAC in Europe, with market sentiment dampened by weak downstream demand and economic challenges despite escalating production costs. This combination of factors underscored the difficulties faced by the European DMAC market in Q3.
For the Quarter Ending June 2024
North America
During Q2 2024, the North American Dimethylacetamide (DMAc) market encountered a downward trend in prices, influenced by several factors that collectively imposed bearish pressure on the market. Despite an increase in prices for upstream raw materials like Dimethyl Amine and Acetic Acid, which typically drive up production costs, the DMAc market did not experience a corresponding rise in prices. Instead, ample inventory levels and subdued demand from crucial downstream sectors such as construction played a more significant role in shaping market dynamics. The availability of excess supply, coupled with diminished consumption, created a scenario where prices softened across the region, even as production costs remained elevated.
The seasonality effects, which often contribute to fluctuations in market prices, were notably overshadowed by the oversupply and slackened demand. The construction sector faced reduced activity levels due to high inflation and economic uncertainties, leading to cautious procurement practices. This conservative approach from downstream sectors further exacerbated the imbalance between supply and demand, reinforcing the downward pressure on prices. As a result, despite seasonal trends that might typically support price increases or stabilization, the overarching market sentiment remained bearish.
Overall, the pricing environment for Dimethylacetamide in North America during Q2 2024 was decisively negative. High inventory levels, coupled with restrained purchasing behavior from downstream sectors, created an environment where prices trended downward. The impact of high inflation and economic caution contributed to a general market bearishness, overshadowing any potential positive influences from rising upstream costs or seasonal demand variations.
APAC
The Dimethylacetamide market in the APAC region experienced a notable decline in prices throughout Q2 2024. This quarter was marked by several significant factors that collectively influenced the market. Unprecedented downpours and severe flooding disrupted supply chains, particularly affecting southern regions. The construction sector, a major downstream consumer of Dimethylacetamide, saw sluggish demand due to these adverse weather conditions. Additionally, stable production costs did not provide any relief, as the prices of feedstocks such as Dimethyl Amine and Acetic Acid remained unchanged. Competitive pressures within the industry further curbed any potential price increments, leading to a consistent downward trajectory. Focusing on China, the country witnessed the most significant price shifts. The overall trend in China was driven by ample inventory levels, moderate to low demand from key sectors such as construction, and disrupted trading activities due to both natural and geopolitical factors. Seasonality also played a role, with traditional holiday periods slowing down market activities. Compared to the previous quarter of 2024, prices fell by 7%, continuing the negative sentiment. The quarter ended with Dimethylacetamide prices settling at USD 1020/MT (FOB-Nanjing). The pricing environment throughout Q2 2024 has been predominantly negative, driven by a confluence of adverse factors, contributing to a sustained decrease in market prices.
Europe
The Dimethylacetamide (DMAc) market in Europe faced a challenging Q2 2024, marked by a persistent decline in prices driven by several key factors. One of the primary contributors to this bearish market sentiment was the subdued demand from the downstream construction sector. Despite the European Central Bank's (ECB) interest rate cut, which aimed to stimulate economic activity and boost consumption, the construction sector failed to show significant improvement. This sector's sluggish performance was a major disappointment as it traditionally drives a substantial portion of the demand for DMAc. The lack of response to economic stimuli highlighted underlying weaknesses in the sector, reflecting broader economic uncertainties and cautious spending patterns. Additionally, high inventory levels added further pressure on the market. With ample supply already available, market participants were hesitant to increase production or engage in aggressive trading activities, choosing instead to align their strategies with the prevailing low demand. Moreover, the overall trends in Q2 2024 were influenced by seasonality factors, which typically bring fluctuations in demand. However, the usual seasonal upticks were notably absent, exacerbating the bearish sentiment in the DMAc market. This absence of increased seasonal demand contributed to a consistent downward trajectory in prices. The stable yet low activity levels across key sectors like construction underscored the lackluster consumption of DMAc. Consequently, market participants had to navigate a negative pricing environment, adjusting their strategies to mitigate losses and manage the high inventory levels. The combined effects of subdued demand, high inventories, and the lack of seasonal demand surges created a challenging market landscape for DMAc in Europe, resulting in persistently declining prices throughout the quarter.
For the Quarter Ending March 2024
North America
In the North American Dimethylacetamide market during the observed period, a downward trajectory was evident, influenced by multiple contributing factors. One significant factor was the accumulated inventories, exacerbating the market's weak condition. However, the demand from the downstream Textile sector was moderate which led to a healthy rate of consumption of the inventories. Moreover, the declining prices of key feedstocks like Dimethyl Amine and Acetic Acid played a pivotal role in reducing the production costs of Dimethylacetamide. This factor further compounded the downward pressure on prices.
According to the Federal Reserve, industrial production in the United States grew in March. However, it experienced a decline at an annual rate during the first quarter of this year. Manufacturing output also saw an uptick in March and was higher compared to the same period last year. Additionally, there was a decline in the production of energy materials. Considering the market dynamics, the market participants responded cautiously, adjusting their ex-quotations downward to stimulate inventory utilization, albeit at the expense of their profit margins.
On the buyers' side, concerns about procurement emerged, leading to restrained purchasing activities aimed at mitigating potential losses and restoring equilibrium in supply and demand. In summary, the Dimethylacetamide market in North America experienced a decline primarily due to inventory accumulation along with the moderate demand from the downstream sector and reduced production costs driven by falling feedstock prices.
APAC
In Q1 2024, Dimethylacetamide prices in the APAC region experienced a consistent decrease. Several factors contributed to this downward trend, including sluggish demand from downstream industries and ample inventory levels. The prices of feedstocks such as Dimethyl Amine and Acetic Acid also remained stable, resulting in a maintained production cost for Dimethylacetamide. The overall market sentiment was bearish, with market participants cautious in their procurement behavior. China, in particular, witnessed the maximum price changes in Dimethylacetamide during this period. The overall trend in China reflected the same decreasing sentiment seen in the APAC region. The market was affected by factors such as a weakening property crisis, declining prices, and sluggish demand from the downstream Textile industry. Despite the end of the Lunar New Year and ongoing snowstorms, the prices of Dimethylacetamide in China declined. Compared to the same quarter last year, Dimethylacetamide prices in Q1 2024 decreased by 2%. The quarter-on-quarter percentage change recorded a decline of 7%. Additionally, there was a 6% decrease in prices between the first and second half of the quarter. Overall, the pricing environment for Dimethylacetamide in the APAC region, particularly in China, has been negative, with a consistent decrease in prices throughout Q1 2024.
Europe
The Dimethylacetamide market in Europe showcased a declining pattern due to several factors that contributed to the downward trend of the commodity. The lower demand for Dimethylacetamide from the downstream Textile sectors resulted in the slow consumption rate of the commodity which resulted in the pilling of the inventories and therefore, contributed to the weak market scenario for the commodity. In terms of the feedstock market, the prices of Dimethyl Amine and Acetic Acid were declining which resulted in the lower production cost of the commodity. Additionally, the ongoing Farmer’s Protest disrupted the supply chain resulting in the disrupted supply and demand equilibrium. The market players were cautious and therefore, reduced their ex-quotation at the cost of their marginal profits so that the stocked-up inventories could be utilized primarily. However, the buyers were concerned about their procurement as well, since they limited their procurement activities to prevent potential losses and with the hope of attaining the supply and demand equilibrium. It can be concluded that Dimethylacetamide followed a downward trend due to sluggish demand, stockpiling of the inventories, and lowered production cost of the commodity.
For the Quarter Ending December 2023
North America
During the fourth quarter ending in December 2023, the US market prices of Dimethylacetamide showcased bullishness in its trend. The market players attributed this to the heightened demand from the downstream textile and polymer manufacturing sectors along with the low supplies of the product. In terms of the upstream market, the prices of dimethylamine supported the prices of the commodity, however, acetic acid followed the opposite trend.
Despite this, the prices of the commodity followed an upward trend. This market situation gave the market players to play in their terms which led to the increase in ex-quotations, to enhance their profit margins along with the sales. Additionally, the buyers went toward bulk procurement to attain the supply and demand equilibrium.
Furthermore, considering the market situation the producers raised their production rate to fill the gap required to attain the smoothness of the supply chain. An increase in the demand from the downstream textile and polymer manufacturing sector resulted in the increased consumption rate of the existing inventories creating the need to restock the storage facilities.
APAC
The APAC Dimethylacetamide market in the fourth quarter of 2023 witnessed a bullish trend with low supply and high demand. The market was affected by various factors such as low supply over high demand. One of the major players in the market, China, observed a price incline of approximately 8% towards the end of the quarter, with the latest price of Dimethylacetamide FOB-Nanjing standing at USD 1152/MT. However, the market remained bullish with insufficient product availability amid strong market sentiments and a potential decrease in supply due to manufacturers reducing their production capacity. Additionally, an increase in energy prices may further surge the overall production cost of the product. A primary reason for the market fluctuations was the supply-demand imbalance driven by heightened demand from downstream industries, including textiles, pharmaceuticals, and the coating sector. The market witnessed no plant shutdown during the quarter. In response to this market condition, traders adjusted their ex-quotations, marginally raising prices to improve their profit margins.
Europe
In the European market, the prices of Dimethylacetamide recorded an upward trend showcasing the bullishness in the market situation of the commodity. This upward movement was attributed to heightened demand from the textile and polymer manufacturing sectors downstream, coupled with limited product supplies. Although the prices of dimethylamine, an upstream component, provided support, acetic acid exhibited an opposing trend. Despite this, the overall trajectory for dimethylacetamide prices remained upward. Market dynamics favored players, allowing them to adjust ex-quotations for increased profitability and sales. Buyers responded with bulk procurement to achieve supply and demand equilibrium. Producers responded to market conditions by elevating production rates to address supply chain smoothness. Rising demand in the textile and polymer manufacturing sector led to increased consumption of existing inventories, prompting the need for restocking storage facilities.
