Indian DMAC Prices Hold Steady, China Faces Decline Amid Weak Downstream Demand
- 30-May-2025 7:15 PM
- Journalist: Peter Schmidt
The dimethyl acetamide (DMAC) market in Asia is experiencing a mixed bag during the third week of May, with Chinese prices clearly declining while Indian prices remain stable. This opposing trend, which is strongly related to downstream markets like chemicals, construction, and pharmaceuticals, reflects changes in supply and demand in different regions.
As of the third week of May, the price of dimethyl acetamide has not changed on the Indian market. The steady demand from the chemical and pharmaceutical industries, which are now producing at almost normal rates, is the reason for this stability. Although the construction industry is expanding moderately, DMAC supplies have not yet been significantly impacted.
Consistent imports and the absence of disruptions to domestic production are also maintaining the country's price equilibrium. The market is reportedly calmer because Indian buyers are adopting a cautious procurement strategy, securing volumes based on actual needs rather than speculative buying.
On the other hand, the price of DMAC in China has been declining this week. According to market reports, one of the main causes is a slowdown in downstream consumption, especially in the fine chemical and pharmaceutical sectors. Due to lukewarm order books and existing inventories, many manufacturers are reportedly reducing their procurement. In addition, infrastructure projects in China's construction sector, which has long been a significant user of auxiliary chemicals like DMAC, are moving slowly and are being delayed. The demand for DMAC will remain low as the consumers will be likely to buy less. The local market may become oversupplied as a result of increased domestic production and supply availability, which would compel sellers to reduce prices in order to move inventory. DMAC is widely used in the pharmaceutical industry in China and India because it is a solvent used in the manufacturing of APIs. Stricter regulatory oversight and slower export orders have resulted in a decrease in China's solvent intake, even though Indian pharmaceutical companies are still operating steadily.
The steady demand for DMAC is supported by India's thriving chemical intermediates market. However, partial shutdowns of chemical plants in China are resulting in lower raw material intake, which is further taxing the demand for DMAC. Despite not being the main user of DMAC, the paint, coatings, and adhesive industries—all of which depend on this solvent—are impacted by its health. This demand has remained steady in India due to ongoing infrastructure projects. On the other hand, China's construction delays have lowered expectations and hurt demand.