Gloomy Demand Dragging Down the Dimethyl Sulfate Prices in the Global Market
- 07-Jul-2022 4:43 PM
- Journalist: Peter Schmidt
Since the threat of inflation at record highs and a recession on the horizon in the European market, it perceived that the price of several commodities has declined in major European countries. As per the latest assessment, Dimethyl Sulphate price in Europe has fallen marginally, backed by the lackluster demand from the regional market.
Dimethyl Sulphate price has plummeted by nearly 3% in Germany in the first week of July, compared with the previous week, despite the consequences of the ongoing energy crisis in the regional market amidst the Russia-Ukraine war. As per the latest insights, demand from the domestic market has remained diminished as the other facets for the prices decline. However, the Producer Index (PI) is still hanging at a mounting level, forcing manufacturers' pockets.
Furthermore, European producers are anxious about the daily strengthening of the dollar, which has reduced exporters' margins while benefiting regional importers. Also, European energy prices have shot up coincided with the rising labor expenses, triggering concern among regional manufacturers. Additionally, market experts are also concerned about global economic growth, as market activity is slowing down daily in terms of future demand fundamentals due to high input costs.
Besides, the relaxation of lockdown restrictions in Shanghai and other big cities in China in recent weeks has loosened some of the supply-chain bottlenecks. At the same time, Chinese Dimethyl Sulphate showcased a 2% drop in the week ending 1st July. According to the local supplier, the demand from the downstream agrochemical and textile industry has remained fragile. On the other hand, soft raw materials Methanol and Sulphuric acid cost have further weighed down on the prices of Dimethyl Sulphate.
According to the ChemAnalyst estimation, "prices of Dimethyl Sulphate will likely decline in the coming weeks, as the demand from the domestic and international market may further slowdown. Similar to the Chinese market, prices of the product, is expected to drop backed by the soft raw material cost."