Distinct Trajectories Emerge in Global DMA Market with Varied Price Trends in the US, China, and Europe
Distinct Trajectories Emerge in Global DMA Market with Varied Price Trends in the US, China, and Europe

Distinct Trajectories Emerge in Global DMA Market with Varied Price Trends in the US, China, and Europe

  • 13-Oct-2023 5:11 PM
  • Journalist: Francis Stokes

FOB Hamburg: In the ever-evolving global Dimethylacetamide (DMA) market, recent price trends have brought forth distinct trajectories for the US, Chinese, and European regions. Each market has been influenced by unique factors, resulting in price fluctuations.

The DMA market in the United States has been marked by price stability, primarily due to consistent feedstock Acetic acid and Dimethylamine costs. Moderate to lower demand from overseas and South American markets has contributed to this stability. Moreover, a recent 11% drop in upstream crude oil prices led buyers to offer lower bids. Furthermore, continuous production of DMA from manufacturing units has resulted in a material overflow in the local market. Despite efforts to manage the supply-demand balance through production rate cuts, significant traders are experiencing a softening trend.

The Chinese DMA market has witnessed a significant price increase, primarily driven by heightened demand from downstream industries, with particular emphasis on the Pharmaceutical and, Electronics & semiconductor manufacturing sectors. This surge in demand has occurred alongside a tightened supply situation, exacerbated by constraints in material availability, leading to disruptions in the DMA supply chain. Furthermore, the escalating cost of a major feedstock, Acetic acid, has contributed to the price upturn. Notably, during the Mid-Autumn festive season, market activity remained moderate. However, China's DMA market is experiencing robust trading activity in the current scenario. The increase of 0.3 percentage points in the new orders index from the previous month indicates a growing demand in the manufacturing market.

Conversely, the European DMA market has observed a notable price decline recently. Market insiders attribute this price correction to the prior inflation due to strong buying activity from downstream pharmaceutical manufacturing units. However, suppliers have been adapting their prices to align with the prevailing market conditions, as buyers from the Textile and fiber industries exhibit reduced interest in DMA procurement activity. Furthermore, the recent drop of approximately 8% in feedstock Acetic acid prices within the past month has prompted buyers to submit lower bids for the product. Additionally, the weakened Purchasing Managers' Index (PMI) in the region has had a cascading effect on market dynamics, with reduced manufacturing activities and industrial output contributing to a decline in DMA demand.

The outlook for the global DMA market varies across regions. According to ChemAnalyst, the Chinese market may continue to experience an upward price trend in the coming weeks. This trend may be supported by increased demand from pharmaceutical, Electronics & semiconductor manufacturing industries and the recent holiday-driven trading activity. Conversely, the European and US markets are expected to see a slight decrement in their market values. In Europe, reduced demand from Textile and fiber industries, lower Acetic acid prices, and weakened PMI may contribute to this decline. In the US, Stable feedstock costs and moderate demand may keep prices steady.

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