During the month of April, the Indian market for Dimethylaminopropylamine (DMAPA) experienced an uptick in price, due to both tighter supply conditions and steady to improved demand from major downstream processing sectors.

The general mood reported by market participants was bullish, particularly driven by the tighter spot availability of DMAPA for end-user demand, especially from surfactants and water treatment chemicals. Despite no major issues continuing to exist at ports, and logistics were still holding, the supply was still tight because of tight inventory levels and slight supply restrictions by suppliers.

Market participants indicated that while Dimethylamine and the other feedstocks were steadily available for production, the spot availability of DMAPA in the market was declining. The supply tightness was compounded by strong international price trends. Additionally, traders reported that buyers were stockpiling in anticipation of increased demand, which also placed pressure on DMAPA prices.

In terms of demand, consumption patterns were positive in April, with some manufacturers gaining access to new demand, and certain downstream manufacturers even going back to full production. P&G Home Products, India’s largest FMCG company and biggest surfactant chemical user, had robust sales. Some companies that sell household products like detergent and shampoo reported strong profits with growing net sales. The profit reports indicated a broader recovery and increase in consumer demand, which also highlighted the need for DMAPA in surfactant formulations.

Manufacturers were reacting to the demand recovery and were willing to remain on the side of caution as they focused on delivering a consistent supply and delivering products to the best of their ability. While the actions were positive to maintain confidence in the market, the shortages of supply in the spot market, combined with increased purchasing activity by end-users, were tightening the market balance.

Overall, April was a bullish month for DMAPA in India in terms of downstream demand, firm international demand, and restricted availability. Supply discipline as well as increased ultimate consumption indicate that the Indian DMAPA market will remain tight unless there is a significant change in supply conditions.

Looking ahead, market participants suggest that unless there is a substantial improvement in domestic production or a decline in demand, DMAPA prices are likely to remain elevated in the near term. Market watchers are closely monitoring the inventory levels for DMAPA and the procurement strategies of key buyers, which will play a critical role in shaping price trends in the upcoming months.