For the Quarter Ending September 2024
North America
Dimethyl Sulphate (DMS) prices in North America during Q3 2024 experienced consistent increases, with the USA witnessing the most significant price changes. Market prices were primarily influenced by tight supplies stemming from production constraints and reduced imports. The high demand from downstream industries, such as agrochemicals and surfactants, further supported the price surge.
Key feedstocks, Methanol and Sulphuric acid, faced supply challenges, further tightening DMS availability. Additionally, supply chain disruptions, including port congestion and raw material shortages, added pressure to prices. The quarter also saw elevated freight charges and increased production costs due to high feedstock prices, contributing to the overall price uptrend. Delays at key ports increased shipping times and costs, exacerbating the supply constraints. Prices of Dimethyl Sulphate (DMS) rose sharply due to tight supply, driven by domestic production disruptions and limited imports from Asia amid port congestion. Despite challenges, the market remained bullish, with prices steadily climbing throughout the quarter.
In the USA specifically, Dimethyl Sulphate prices saw a notable increase of 10% from the previous quarter. The market exhibited a positive trend, with prices consistently rising. The quarter ended with Dimethyl Sulphate DOP priced at USD 1760/MT DEL Los Angeles, reflecting the ongoing upward trajectory in pricing.
APAC
In Q3 2024, the Dimethyl Sulphate market in the APAC region witnessed a significant uptrend in prices, driven by a confluence of factors. Tight supply conditions, robust demand from downstream industries, and high feedstock prices, particularly sulphuric acid and methanol, played a pivotal role in pushing prices upwards. The agrochemical, surfactant, and water treatment sectors reported rising demand, boosting market sentiment. Additionally, while upstream crude oil prices remained volatile, decreased ocean freight rates from China to India offered some relief, yet overall supply constraints continued to influence price stability. As market participants anticipate potential stabilization in demand due to the monsoon season, the outlook remains cautiously optimistic. The overall trend in the region indicated a positive pricing environment, with prices showing a 1% increase from the previous quarter. India, experiencing the most substantial price changes, recorded a notable uptick in Dimethyl Sulphate prices, with the quarter-ending price standing at USD 519/MT CFR Hazira. This surge reflects a continuous upward trajectory in pricing, showcasing a favorable market outlook characterized by increasing demand and limited availability, setting the stage for a promising period ahead.
Europe
In Q3 2024, the Dimethyl Sulphate (DMS) market experienced a mixed pricing pattern influenced by various demand and supply factors across the European region. Demand from downstream industries, particularly agrochemicals, pharmaceuticals, and dyes, fluctuated during the quarter, impacting overall consumption levels. Economic indicators from Europe and specific countries also played a significant role in shaping demand for DMS-based products. On the supply side, production challenges emerged as unexpected plant shutdowns and maintenance issues at DMS production facilities temporarily limited availability, contributing to upward price pressures. Additionally, fluctuations in the costs of key raw materials methanol and sulfuric acid affected production expenses, further influencing product pricing. Port congestion in Europe created logistical hurdles, impacting the timely import and export of DMS, which altered the balance between supply and demand. Specific factors within the downstream industries also shaped market dynamics. In the agrochemical sector, demand was influenced by crop yields, weather conditions, and government agricultural policies. The pharmaceutical industry's consumption of DMS varied with drug development timelines and regulatory changes, while demand from the dyes industry was affected by textile production levels and prevailing fashion trends. Overall, while some sectors experienced rising demand that supported prices, others faced challenges that contributed to a more complex and mixed pricing landscape throughout Q3 2024.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Dimethyl Sulphate (DMS) market experienced a bullish pricing environment, driven by several significant factors. Heightened raw material costs, sustained domestic demand, and a surge in export activities were pivotal in elevating prices. The downstream demand, particularly from the paint and coating sectors, surged due to robust vehicle sales and overall industrial expansion. This quarter saw a steady increase in input costs, driven by elevated feedstock sulphuric acid prices and heightened energy prices, further exacerbating production costs. Additionally, geopolitical tensions, notably the Hamas-Israel conflict, contributed to increased crude oil prices, which along with disrupted global oil supplies, led to a surge in container shipping rates.
Focusing exclusively on the USA, the market witnessed the most significant price changes. The overall trend for DMS in the USA was characterized by a persistent upward trajectory, influenced by heightened seasonal demand and optimistic market sentiments. The correlation between increased manufacturing activities and the uptick in DMS prices was evident. Compared to the previous quarter, Q2 2024 recorded a 2% increase, reflecting steady growth. Moreover, there was an 8% price rise from the first to the second half of the quarter, underscoring the intensifying demand as the summer procurement period approached.
Conclusively, the quarter-ending price for DMS stood at USD 1650/MT DOP DEL-Los Angeles in the USA, marking a robust period of price increments driven by both external and internal market dynamics.
APAC
In Q2 2024, the pricing environment for Dimethyl Sulphate in the APAC region has experienced a notable upward trajectory. This quarter was marked by a confluence of critical factors that have exerted upward pressure on market prices. Elevated raw material costs, especially for feedstock sulphuric acid, have amplified production expenses. Additionally, geopolitical tensions and disruptions, including plant shutdowns in significant petrochemical hubs, have curtailed supply chains. Seasonal spikes in demand, particularly in the downstream paint, coating, and adhesive industries, have further strained availability, pushing prices higher.
India has observed the most pronounced price shifts within the APAC region during this period. The overall trends indicate a robust correlation between heightened demand and limited supply. The burgeoning construction sector and a surge in real estate activities have escalated the need for construction materials, including Dimethyl Sulphate. This period has also seen intensified procurement efforts amid tight market conditions, reflecting a consistent bullish sentiment.
Seasonality has played a pivotal role, with increased demand during peak construction and agricultural periods exacerbating supply constraints. Compared to Q1 2024, prices have surged by 8%, underlining the persistent upward momentum. The first half of Q2 witnessed a comparative 3% increase in prices against the latter half, underscoring continuous demand pressures.
Europe
In the second quarter of 2024, the European Dimethyl Sulphate (DMS) market saw a notable increase in prices due to several impactful factors. Key among these was a rigorous maintenance schedule at European smelters, limiting DMS availability and causing supply constraints. This scarcity was compounded by tightened supplies of sulphuric acid, a crucial raw material. Concurrently, strong demand from the agrochemical sector during seasonal planting activities exacerbated the supply-demand gap. The economic landscape, marked by inflation and higher production costs linked to rising crude oil prices, also contributed significantly to the uptick in DMS prices. In Germany, which witnessed the most pronounced price shifts, the quarter displayed a clear upward trajectory. This rise was primarily driven by heightened demand from the agrochemical industry amid the planting season, alongside inadequate inventory levels. As Q2 2024 concluded, DMS prices in Germany settled at elevated levels, reflecting a predominantly positive pricing environment shaped by constrained supply and robust demand. This period underscored the market's sensitivity to logistical and economic factors, highlighting significant price inflation and tight market conditions.
For the Quarter Ending March 2024
North America
The first quarter of 2024 was characterized by fluctuating prices for Dimethyl Sulphate in the North America region. Several factors influenced the market prices during this period. In the USA, Dimethyl Sulphate prices experienced a decline in February 2024, primarily due to weakened consumer demand. The downstream agrochemical sector saw subdued demand, leading to oversupply in regional markets and subsequent price reductions. However, demand from the detergent industry remained steady, supported by improving business confidence. Overall, the market sentiment was negative, with elevated inventory levels adding to downward price pressure.
In January, Dimethyl Sulphate prices in the USA increased due to rising demand from the downstream fertilizer and pharmaceutical sectors. The Biden administration's investment in domestic fertilizer further boosted demand, signaling potential investment opportunities. Additionally, strong sales in the domestic and US markets for pharmaceuticals contributed to the upward trend in prices. There was a mix of positive and negative price changes throughout the quarter, driven by factors such as demand from different industries and supply disruptions.
In conclusion, the latest quarter-ending price for Dimethyl Sulphate DOP DEL-Los Angeles in the USA was USD 1520/MT. The pricing environment for Dimethyl Sulphate in the North America region was influenced by both positive and negative factors, resulting in fluctuating prices.
APAC
In the APAC region, the pricing environment for Dimethyl Sulphate in Q1 2024 was positive overall. The market witnessed significant price changes, influenced by various factors, including supply disruptions, increased demand from downstream industries, and fluctuations in feedstock prices, along with higher prices upstream for naphtha.
Specifically in India, there was a notable increase in Dimethyl Sulphate prices. This surge can be attributed to increased demand from the agricultural and pharmaceutical sectors. Factors such as increased agricultural exports, government initiatives promoting healthier food alternatives, and strong sales in the pharmaceutical market drove demand in these industries. Furthermore, supply constraints and disruptions, such as farmer protests, contributed to the price surge in India. The availability of Dimethyl Sulphate was moderate, leading to a reduction in inventory levels and upward pressure on prices. Additionally, positive growth in India's manufacturing sector further supported demand for Dimethyl Sulphate in the construction sector.
Overall, the pricing trend for Dimethyl Sulphate in Q1 2024 was bullish in the APAC region, with India experiencing the most significant price changes. The latest quarter-ending price stood at INR 38600/MT of Dimethyl Sulphate CFR Hazira in India.
Europe
The first quarter of 2024 was characterized by fluctuating prices for Dimethyl Sulphate in Europe. Several factors influenced the market prices during this period. In Europe, Dimethyl Sulphate prices experienced a decline in February, largely due to weakened consumer demand. The downstream agrochemical sector saw subdued demand, leading to oversupply in regional markets and subsequent price reductions. However, demand from the detergent industry remained steady, supported by improving business confidence. Overall, the market sentiment was negative, with elevated inventory levels adding to downward price pressure.
In January, Dimethyl Sulphate prices in Germany increased due to rising demand from the downstream fertilizer and pharmaceutical sectors. Additionally, strong sales in the domestic and European markets for pharmaceuticals contributed to the upward trend in prices. There was a mix of positive and negative price changes throughout the quarter, driven by factors such as demand from different industries and supply disruptions.
In conclusion, the pricing environment for Dimethyl Sulphate in the European region was influenced by both positive and negative factors, resulting in fluctuating prices.
For the Quarter Ending December 2023
North America
The North American DMS market displayed a mixed price scenario in Q4 2023, initially decreasing in October and November before experiencing a modest increase towards the quarter's end.
The decline was driven by weakened downstream demand from industries like surfactants and pesticides, along with easing freight costs and sufficient regional supply. The slight uptick in prices in late Q4 was influenced by seasonal demand shifts, particularly in antifreeze applications during winter months, and production adjustments as some producers reduced output in response to earlier lower prices.
Stabilizing methanol prices in Q4 helped moderate production costs, limiting significant price fluctuations. The presence of multiple producers in the region maintained high competition, contributing to price sensitivity. Import activity remained moderate, aligning imported DMS prices with domestic prices. Adequate inventory levels throughout the quarter prevented substantial price spikes.
Asia Pacific
In Q4, Asia Pacific showcased a diverse pricing trend. Indian Dimethyl Sulphate experienced declines akin to Europe, while Dimethyl Sulphate prices in China witnessed price stabilization or slight increases. Variations in demand across industries and countries played a pivotal role in the differing price movements within the region. Import reliance emerged as a key driver, influencing prices in countries where dependence on imports from other regions was significant. Volatile feedstock costs, marked by fluctuations in raw material prices, impacted production costs and contributed to overall price variations across Asia Pacific. The mixed trend in prices underscored the complex interplay of demand dynamics, import dependencies, and raw material fluctuations within the diverse economic landscape of the Asia Pacific region.
Europe
The European DMS market experienced a decline in Q4 2023, with prices decreasing by 5-10% compared to the previous quarter, marking a reversal from earlier significant increases in the year. The downturn was primarily driven by weakened demand from downstream industries such as surfactants, dyes, and pesticides. Additionally, easing freight costs and ample supply across the region contributed to the overall decrease in DMS prices. Increased competition among European producers played a role in keeping prices in check during the quarter. The impact on industries varied, benefiting downstream users in various sectors facing cost pressures due to lower DMS prices. However, DMS producers likely experienced challenges to profitability, depending on individual production costs and hedging strategies.
Regional variations persisted, with prices generally higher in Western and Central Europe compared to Eastern European markets. This discrepancy can be attributed to factors like transportation costs, where regions further from production facilities experienced higher prices. Local supply and demand dynamics, especially in areas with concentrated DMS-dependent industries, led to more significant price fluctuations. Furthermore, currency fluctuations, particularly the weakening of the Euro against the US dollar, impacted import prices.
