How growing demand escalating the prices of Dimethyl Sulphate globally
- 08-Apr-2022 5:41 PM
- Journalist: Jacob Kutchner
Dimethyl Sulphate (DMS) prices surged in the global market due to its increasing demand as a solvent from the downstream pharmaceutical and dyes industries. Taking pressure from the soaring feedstock prices, manufacturers of DMS increased the production costs to hike their profit margins. Consequently, the higher costs were passed on to the end consumers. Many factors, including the Russia-Ukraine war coupled with hampered trade, affected the DMS prices in global market.
In April, the price of Dimethyl Sulphate (DMS) CFR Hazira in India was estimated to be around USD 820/MT, showcasing an inclination of 4% on a month-on-month basis. Amidst the soaring high freight charges due to the container shortage and ongoing war, supplies remained dull in the international market. Also, due to the concerns over the new coronavirus variant in China and the current energy crisis in Europe, prices remained uphill, which continued to hamper production rates. In the United States, DMS availability remained limited due to low import volumes from South Asian countries.
In China, prices of products soared with the forced restrictions in crucial cities due to the resurgence in Covid cases and the adoption of the 'Zero-Covid policy,' which hindered production and trading. The increased demand from end-user pharmaceutical industries is the primary reason for the limited supplies in the markets, as DMS is used as an intermediate in many pharmaceuticals. Additionally, increased feedstock pricing also substantially impacted limiting supplies as one of the significant manufacturers, Tongmei Guangfa Chemical Industry, has gone into maintenance period in Shanxi, further affecting the supply chain in domestic and international market.
According to ChemAnalyst, "Dimethyl Sulphate prices are projected to climb due to rising pharmaceutical industry demand and restricted availability. Furthermore, high feedstock prices, such as Methanol and Sulphuric acid, may contribute to a global increase in Dimethyl Sulphate pricing."