Demand Disruptions Cause Dimethyl Sulphate Prices to Oscillate Across the Global Market
- 28-Jun-2022 8:21 AM
- Journalist: Jai Sen
Since the beginning of June, the prices of Dimethyl Sulphate have continued to fall in the European market, backed by the rising inventory level along with weak demand. Additionally, due to surging production rates among the central manufacturing units, the prices of Dimethyl Sulphate slowed with tepid market sentiments. In terms of the raw material market, Methanex, a global supplier and distributor of Methanol, has revised the prices for the European market. Also, demand dwindled from the downstream agrochemicals as well as from the pharmaceutical industry has dampened the market fundamentals. As a result, Dimethyl Sulphate prices fell by nearly 2.2% in German market.
Likewise, major Dimethyl Sulphate producers had revised their contract prices for July shipments due to tepid trading from overseas suppliers. In terms of inventories, slowing demand impacted the market dynamics with rising stocks of Dimethyl Sulphate in major exporting countries, namely, Spain and the Netherlands.
Moreover, in the Chinese market, the prices of Dimethyl Sulphate have witnessed an upward momentum due to the soaring cost of the raw material, especially Methanol. On the other hand, demand for Dimethyl Sulphate in the pharmaceutical and other segments has continued to improve in the local market. Furthermore, high energy rates and operating costs have influenced Dimethyl Sulphate prices in both domestic and international markets. According to the ChemAnalyst, prices of Dimethyl Sulphate were hiked by 7.2% in China during the month of June.
Similarly, in the Indian market, demand for Dimethyl Sulphate in the agrochemical sector has remained robust despite seasonal demand, putting additional pressure on Dimethyl Sulphate to follow the regional market's upward trend. Furthermore, since India is majorly an imported commodity, particularly for Dimethyl Sulphate (DMS), a shoot-up in the freight charges coupled with the shipping delays amidst port congestion has the other facets for the high prices of Dimethyl Sulphate. As per the ChemAnalyst database, the prices of Dimethyl Sulphate surged by 3.1% in June.
According to ChemAnalyst estimation, "the price of Dimethyl Sulphate is expected to showcase a mixed sentiments across the global market. Additionally, prices of Dimethyl Sulphate in European market are projected to drop in the month of July. Also, raw materials like Methanol are on the lower end owing to oversupplies, which will further slow the prices of Dimethyl Sulphate in the Europe region. At the same time, in the Asian region, the feedstock Methanol and Sulphuric acid prices are expected to increase, which may impact the Dimethyl Sulphate prices. On the other hand, demand for Dimethyl Sulphate is anticipated to increase in the agrochemical, dyes, and pharmaceutical industries. In addition, oscillation in natural gas and crude values will also remain the key factor for price change throughout the world-wide market.”