For the Quarter Ending December 2022
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.
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.
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.
For the Quarter Ending September 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.
In the first quarter of 2022, the prices of Dimethyl carbonate remained firm to increase in the North American market. The feedstock Methanol values increased in the domestic market during Q1, which increased the production cost of Di- Methyl Carbonate. The demand remained consistent from cleaning agent industries in Q1 2022. After the cop 26 Glassgow conference, the cleaner energy initiatives rose the demand for EV vehicles, which increased Di – Methyl carbonate demand in the US market. The values rose further in the second half of the quarter after inflation in Crude Oil prices, impacted by the war between Russia and Ukraine.
The price trend of Di-Methyl Carbonate fluctuated in the Asian market along with shifting feedstock Methanol values during the first quarter of 2022. The prices decreased in the Chinese market due to China’s zero covid policy, but demand from the Automotives sector was consistent. However, the values of Di-Methyl carbonate rose in the Indian market due to increased EV vehicles demand in the automotive sector, especially in the H2 of the first quarter. Disruption in the supply chain and inflation in crude oil prices impacted the raw material supplies and production cost of Di-Methyl Carbonate in the region more significantly.
The values increased in the European market amid the high demand for downstream EV vehicles, which elevated the demand for Di-Methyl Carbonate in these industries, impacting the prices during the first quarter of 2022. High energy values throughout the quarter impacted the production rates in the region. However, feedstock Methanol prices were stable in the market. Due to this, uncertainties in the product supplies to the market escalated the prices in Q1. Also, disruption in the supply chain, significantly in March after the war in the East-European region, further added numbers to the values of Di- Methyl carbonate in the domestic market.