APAC’s DMAC Market Holds Steady Amid Mixed Sectoral Demand and Tariff Pressures
APAC’s DMAC Market Holds Steady Amid Mixed Sectoral Demand and Tariff Pressures

APAC’s DMAC Market Holds Steady Amid Mixed Sectoral Demand and Tariff Pressures

  • 28-Apr-2025 4:30 PM
  • Journalist: Patricia Jose Perez

During the second and the third week of April 2025, the Dimethylacetamide (DMAC) market in the Asia-Pacific (APAC) region showed a stable price trend. Moderate demand for DMAC from downstream sectors like construction and pharmaceuticals, along with a steady but somewhat easing trend in upstream raw material costs along with the influenced market movement.

A significant user of DMAC, the pharmaceutical sector, demonstrated steady but circumspect activity. Production levels were somewhat reduced as a result of inventory balancing and selective procurement tactics, even though continuing drug manufacturing operations maintained a baseline demand for DMAC as a solvent. Any notable upward momentum in DMAC prices was thwarted by pharmaceutical companies' cautious buying sentiment, which was influenced by slower market growth and unclear regulatory updates.

The DMAC demand in the construction sector relatively stable. In major Indian cities, the total number of registered residential transactions with the Inspector General of Registration (IGR) rose by 77% from 3.07 lakh units in FY 2019 to 5.44 lakh units in FY 2025. There is only a moderate need for DMAC in related chemical formulations, though, as a result of budget reviews and material cost considerations slowing the pace of new project initiations in major Indian cities like Bengaluru, Hyderabad, Mumbai, Pune, etc. The lack of robust growth might put mild downward pressure on prices, despite the fact that demand did not decline significantly. In China, the Trump administration's proposed tariff schedule has increased uncertainty in construction sector, which has weakened aggregate demand and caused labour market stagnation. High tariffs on all steel and aluminium products in China’s market have a major impact on the industry. The increasing price of steel and aluminium, two essential building materials, will probably have an immediate to medium-term effect on construction output. It is anticipated that the rising material costs will be passed on to customers, driving up building expenses and making new construction less affordable.

In India and China, the upstream methylamine market saw a steady to marginally declining trend. Stable operating rates among manufacturers and sufficient methylamine availability contributed to the stabilisation of DMAC.

According to ChemAnalyst, the APAC’s DMAC market is anticipated to continue its steady to slightly declining trend in the upcoming weeks. In order to influence the supply-demand balance and pricing trajectory in the upcoming weeks, market participants are keeping a close eye out for any indications of a recovery in the construction and pharmaceutical industries.

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