For the Quarter Ending March 2023
North America
In the first quarter of 2023, the market of Dimethyl Carbonate observed a bearish pricing trend in the US domestic market. In January, the market prices dropped amidst restricted market activities in the Asian region, and the regional market competition dropped amongst the downstream EV manufacturers. In February, the prices tumbled further amidst a wait-and-see consumer market attitude in the region as the Asian market participants reported a drop in electric vehicle sales and built-up inventories, and the downstream consumers were reluctant to place new orders. Whereas in March, due to a decline in new orders and slipping export sales, the market prices of Dimethyl Carbonate slipped down in the region.
APAC
In the first quarter of 2023, the Dimethyl Carbonate market showcased a bearish price trend in the Chinese domestic region. In January, the market prices witnessed a considerable plunge in the offered quotations due to drop-in operating rates at the cathode material manufacturing facilities. Also, the cost support from the feedstock remained on the lower edge in this period. In February, the prices dropped further due to a weaker demand outlook, and the drop in electric vehicle sales led to a wait-and-see consumer attitude in the region. In March, the prices declined further owing to weaker cost support from the upstream Ethylene Carbonate and drop-in market activities in the downstream chemical manufacturing industry. Thus, the prices of Dimethyl Carbonate FOB Shenzhen settled at USD 857 per tonne at the end of Q1 2023.
Europe
In the first quarter of 2023, the overall market prices of Dimethyl Carbonate rode the downward trajectory in the European domestic market. In January 2023, the offered quotes plunged, moving identically to the Asian market. In addition, the rising inflation and energy prices kept the operating rates restricted in the region. In February, the prices dropped due to weaker demand from the Asian market players leading to restricted market activities and uncertainties regarding the economy. In March, the prices dropped further due to lacking market competitiveness from the Asian markets and the wait-and-see consumer market sentiments across the globe. Also, the manufacturing PMI dropped in the European region due to lower input costs and a weaker demand outlook.
For the Quarter Ending December 2022
North America
Overall the Dimethyl Carbonate market in the North American region has observed mixed sentiments throughout the fourth quarter of 2022. This development has been majorly attributed to the fluctuation and uncertainties in the cost support from the upstream, especially after the European Union put a complete embargo on Russian crude oil supplies. At the same time, the slowdown in the APAC EV market has also impacted the regional EV market across the North American region. In addition, the participation of the European players has considerably hindered the availability by pressurizing the value chain. However, the operating rates at the facilities were lowered amidst the disruptions related to extreme weather conditions. As a ripple effect, the DDP USGC discussions for Dimethyl Carbonate were assessed at USD 1138 per tonne in December 2022.
Asia Pacific
Overall, the Dimethyl Carbonate market in the Asian Pacific region observed a persistent bearish trajectory throughout the fourth quarter of 2022. This development has been majorly attributed to the curtailment of consumption as an Electrolyte from the downstream EV industries. That is further coupled with the weakened cost support from the feedstocks, as both the prominent economies of India and China are importing Crude Oil from Russia. In response, the impact of inflation and hiked interest rates remained controlled, leaving the Dimethyl Carbonate market to be dependent on the supply-demand dynamics. Whereas in China, EV sales dropped by considerable margins as compared to the last quarter of 2023, furthermore revocation of the EV subsidy made the battery manufacturers cautious about the excess buying streak. As a ripple effect, the FOB Shenzhen discussions for the Dimethyl Carbonate market in December 2022 were assessed at USD 921 per tonne.
Europe
The Dimethyl Carbonate in the European market has remained on a bearish trajectory throughout the fourth quarter of 2022. This development is majorly attributed to the lack of market competitiveness amongst the market players in Europe. The rising inflation and interest rates have suppressed the demand outlook. At the same time, the high energy costs have forced the producers to drop the operating rates at the manufacturing facilities across Europe. As a ripple effect, the supply-demand dynamics in the domestic market have been hampered substantially. Therefore, the CFR Genoa discussions for Dimethyl Carbonate were assessed at USD 1334 per tonne in December 2022.
Overall, the Dimethyl Carbonate market in the North American region has stagnated to staggering downwards during the third quarter of 2022. This development is majorly attributed to consistent restocking practices in the US domestic market to avoid any hurricane-related disruptions. In addition, the cost support from the feedstock has levied a significant impact across the value chain. Although demand from EVs, the Pharmaceuticals and paints industry has consistently supported the producer's will to raise the offered quotations for Dimethyl Carbonate in the US domestic market. As a ripple effect, the DDP USGC discussions for Dimethyl Carbonate were assessed at USD 1438 per tonne in September.
In the third quarter of 2022, the Dimethyl Carbonate market in the Asia Pacific witnessed mixed sentiments. This development is majorly attributed to the subdued market activities in the domestic market. At the same time, the downstream facilities' operations remained subdued amidst the rising inflation and power rationing in the Chinese domestic market. At the same time, the power rationing levied a significant impact across the downstream value chain, suppressing the domestic market's overall demand. Although overall demand improved by the end of the quarter but remained restricted as the new energy reforms presented by the Chinese authorities concluded a restricted amount of energy. In response, it impacted the operations but remained restricted in the Chinese domestic market. As a ripple effect, the FOB Shenzhen discussions for Dimethyl Carbonate were assessed at USD 1168 per tonne in September.
The Dimethyl Carbonate market in the European markets was bearish in the first half of the month, whereas the latter half remained stagnant. The economics and commercial activities remained subdued for the majority of terms amidst the summer holidays in the European markets. In addition, the market activities rebounded in September. In addition, the EUR depreciated against the USD. However, the domestic market is clouded with numerous uncertainties as inflation soared to historic highs that suppressed the market dynamics in the domestic market. As a ripple effect, the DDP Antwerp discussions for Dimethyl Carbonate were assessed at USD 1326 per tonne in September.
