For the Quarter Ending March 2025
North America
The Dimethylacetamide (DMAC) market showed slightly declining trend during the first quarter, driven by subdued activity in its key downstream sectors—pharmaceuticals and construction. Despite some resilience shown by the pharmaceutical sector, the overall demand remained insufficient to support price growth. While pharma exports remained steady, domestic pharmaceutical consumption plateaued, and market participants adopted on-demand procurement strategies instead of bulk buying, contributing to reduced offtake volumes. This restrained buying behavior kept pressure on DMAC prices, as manufacturers refrained from raising quotations due to sufficient inventory levels and low urgency for replenishment.
Simultaneously, the construction sector in North America remained weak, weighed down by economic uncertainty, higher interest rates, and lower housing starts. This decline in new construction activity directly impacted demand for DMAC -based construction applications, including insulation and coatings. Combined with stable supply conditions and minimal logistic cost fluctuations, the limited momentum from both sectors failed to generate upward pricing pressure.
As a result, cautious downstream demand and steady supply dynamics led to a modest yet notable price decline in the region.
EUROPE
In the first quarter of 2025, the DMAC market showed mixed trend as Europe's construction sector exhibited varied trends. While there are signs of a gradual recovery driven by demand for modernized infrastructure and sustainable buildings, certain segments, such as residential construction in Germany, continue to face challenges. Building permits for apartments in Germany declined by 2.3% in February compared to the same month the previous year, indicating ongoing struggles in the property sector.
The pharmaceutical industry in Europe is navigating uncertainties due to potential U.S. tariffs on imported medicines. Major pharmaceutical companies have appealed to the European Commission for support to maintain their presence in the EU, highlighting economic disadvantages compared to the U.S. In response to tariff threats, Irish pharmaceutical exports to the U.S. surged by over 450% year-on-year in February, reaching €10.5 billion, as companies increased shipments to mitigate potential trade barriers.
These developments reflect a complex landscape for Europe's construction and pharmaceutical sectors in early 2025, characterized by both opportunities for growth and challenges posed by external economic factors.
APAC
The APAC Dimethylacetamide market in Q1 2025 displayed subdued price fluctuations, indicative of balanced supply chain dynamics and restrained procurement by manufacturers. Demand remained stable, bolstered by consistent consumption in downstream construction and pharmaceutical sectors, despite reduced new order volumes. Freight cost reductions and efficient port operations supported steady trading activities, although sporadic logistical disruptions dampened market momentum. Adequate inventory levels further sustained neutral market sentiment throughout the quarter.
In China, Dimethylacetamide prices fell by 7.87% from Q4 2024 to Q1 2025, averaging USD 804/MT on an FOB-Nanjing basis. Prices demonstrated a flat intra-quarter trend, reflecting stable supply chains and sufficient inventories. Demand from construction remained consistent, while a recovering pharmaceutical sector provided additional support. However, bearish market sentiment prevailed due to limited new order inflows.
Looking ahead, the near-term outlook for the market is cautiously stable, with modest upward potential tied to fluctuations in feedstock costs and anticipated improvements in sectoral demand, particularly from pharmaceuticals and construction.
For the Quarter Ending December 2024
North America
During Q4 2024, the Dimethylacetamide (DMAc) market in North America witnessed moderate growth, fueled by a rise in demand from key sectors like pharmaceuticals, agrochemicals, and textiles. In the pharmaceutical industry, DMAc’s role as a solvent and catalyst drove consistent consumption, while the agrochemical sector continued to rely on DMAc for various formulations, boosting demand. The textile industry, which uses DMAc for producing high-quality solvents, also contributed positively to market performance.
However, the market faced some hurdles, such as fluctuations in raw material costs, which added uncertainty to pricing and profitability. The presence of substitute solvents also posed a challenge, with some industries exploring alternatives to DMAc due to cost or availability considerations.
Despite these challenges, the overall outlook for the DMAc market remained optimistic, supported by stable demand from key sectors. The growing applications of DMAc in these industries, combined with an expanding need for its use in production processes, provided a solid foundation for sustained growth throughout the quarter.
APAC
Throughout Q4 2024, the Dimethylacetamide (DMAC) market in China exhibited a bearish trend, primarily driven by weak demand from the pharmaceutical and coating sectors. Despite stable feedstock prices for Dimethyl Amine and Acetic Acid, low demand from key downstream industries suppressed market activity. Inventory levels were sufficient to meet the subdued demand, and market participants focused on destocking efforts to align supply with the lack of strong market interest. The holiday periods in China further dampened market activity, with many producers scaling back operations, leading to reduced trading and cautious procurement behaviors. As a result, market participants refrained from engaging in active purchases, opting instead to deplete existing inventories. The bearish sentiment was further fueled by a decline in new orders and a reluctance to increase quotations amid declining sales and economic uncertainty. Additionally, concerns over global trade outlooks and potential tariffs contributed to the cautious market atmosphere, with stability in prices reflecting the prevailing subdued sentiment and limited demand.
Europe
In Q4 2024, the Dimethylacetamide (DMAc) market in Europe experienced moderate growth, driven by a surge in demand for the commodity from the pharmaceutical and agrochemical sectors, where DMAc plays a crucial role as both a solvent and catalyst. The pharmaceutical industry continued to rely on DMAc for drug formulation, while the agrochemical sector used it in pesticide production. Additionally, the textile industry contributed to market performance due to its need for high-quality solvents in fabric processing and dyeing. However, the market faced challenges, particularly fluctuations in raw material costs, as the prices of feedstocks like Dimethylamine and Acetic Acid varied, impacting overall production costs. The presence of substitute solvents also posed a challenge to DMAc demand, as some industries looked for alternative solutions to reduce costs. Despite these obstacles, the market outlook remained positive, with continued support from the key sectors maintaining steady growth. The demand from these industries helped the market maintain stability, and future growth prospects look optimistic as industrial needs for high-quality solvents persist.
For the Quarter Ending September 2024
North America
In Q3 2024, Dimethylacetamide (DMAC) prices in North America experienced an upward trajectory, with the USA observing the most significant price hikes. This growth stemmed from a combination of factors affecting market dynamics, notably supply constraints and heightened demand from critical downstream sectors. Labor strikes and natural disasters played a pivotal role in tightening the supply of DMAC across the region, as these disruptions impacted both production and transportation channels. This scarcity exerted considerable upward pressure on DMAC prices, with manufacturers struggling to maintain supply amid restricted availability.
Adding to the strain, the Pharmaceutical sector, a primary consumer of Dimethylacetamide, witnessed a surge in demand during the quarter. The pharmaceutical industry which depends on DMAC in various applications, placed additional pressure on an already limited supply and further elevated prices. Feedstock prices for Dimethyl Amine and Acetic Acid, both essential inputs in DMAC production, experienced steady growth throughout Q3, driving up production costs and reinforcing bullish sentiment in the DMAC market.
The combination of supply constraints, strong demand from the pharmaceutical industry, and rising feedstock prices created a tight market environment. Consequently, DMAC prices climbed as suppliers adjusted quotations to reflect these challenging conditions, establishing a notably bullish outlook for the US market in Q3.
APAC
The third quarter of 2024 has been characterized by a persistent downward trend in Dimethylacetamide pricing across the APAC region, with notable influences impacting market prices. Factors such as weakened demand from key downstream sectors, particularly the construction and pharmaceutical industries, have contributed significantly to the declining prices. However, the fluctuations in production costs due to mixed feedstock prices, notably Dimethyl Amine and Acetic Acid, have kept pricing pressures on Dimethylacetamide. In China, the market has experienced the most significant price changes, with a -9% decrease compared to the same quarter last year. The correlation between price changes and seasonality has been evident, with a -7% change from the previous quarter in 2024 and a -4% difference between the first and second half of the quarter. The latest quarter-ending price of USD 950/MT of Dimethylacetamide FOB-Nanjing in China reflects the prevailing negative sentiment in the pricing environment, showcasing a consistent decrease in market prices throughout the quarter.
Europe
In Q3 2024, Europe’s Dimethylacetamide (DMAC) market faced a marked decline in prices, reflecting a challenging environment shaped by subdued demand and economic uncertainty. Downstream sectors, especially Pharmaceuticals and Construction, witnessed weakened activity due to ongoing economic pressures and reduced consumer spending, resulting in lower demand for DMAC. This decline in usage across critical sectors created an oversupply situation, which intensified the downward pressure on DMAC prices. Interestingly, feedstock prices for Dimethyl Amine and Acetic Acid, essential raw materials for DMAC production, experienced steady growth during the quarter. Rising costs for these inputs pushed up production expenses, yet producers struggled to transfer these costs to end-users amid the unfavorable market sentiment. Consequently, the disconnect between production costs and selling prices weighed on profitability, compelling market players to offer competitive pricing to stimulate limited demand. The result was a bearish pricing environment for DMAC in Europe, with market sentiment dampened by weak downstream demand and economic challenges despite escalating production costs. This combination of factors underscored the difficulties faced by the European DMAC market in Q3.
For the Quarter Ending June 2024
North America
During Q2 2024, the North American Dimethylacetamide (DMAc) market encountered a downward trend in prices, influenced by several factors that collectively imposed bearish pressure on the market. Despite an increase in prices for upstream raw materials like Dimethyl Amine and Acetic Acid, which typically drive up production costs, the DMAc market did not experience a corresponding rise in prices. Instead, ample inventory levels and subdued demand from crucial downstream sectors such as construction played a more significant role in shaping market dynamics. The availability of excess supply, coupled with diminished consumption, created a scenario where prices softened across the region, even as production costs remained elevated.
The seasonality effects, which often contribute to fluctuations in market prices, were notably overshadowed by the oversupply and slackened demand. The construction sector faced reduced activity levels due to high inflation and economic uncertainties, leading to cautious procurement practices. This conservative approach from downstream sectors further exacerbated the imbalance between supply and demand, reinforcing the downward pressure on prices. As a result, despite seasonal trends that might typically support price increases or stabilization, the overarching market sentiment remained bearish.
Overall, the pricing environment for Dimethylacetamide in North America during Q2 2024 was decisively negative. High inventory levels, coupled with restrained purchasing behavior from downstream sectors, created an environment where prices trended downward. The impact of high inflation and economic caution contributed to a general market bearishness, overshadowing any potential positive influences from rising upstream costs or seasonal demand variations.
APAC
The Dimethylacetamide market in the APAC region experienced a notable decline in prices throughout Q2 2024. This quarter was marked by several significant factors that collectively influenced the market. Unprecedented downpours and severe flooding disrupted supply chains, particularly affecting southern regions. The construction sector, a major downstream consumer of Dimethylacetamide, saw sluggish demand due to these adverse weather conditions. Additionally, stable production costs did not provide any relief, as the prices of feedstocks such as Dimethyl Amine and Acetic Acid remained unchanged. Competitive pressures within the industry further curbed any potential price increments, leading to a consistent downward trajectory. Focusing on China, the country witnessed the most significant price shifts. The overall trend in China was driven by ample inventory levels, moderate to low demand from key sectors such as construction, and disrupted trading activities due to both natural and geopolitical factors. Seasonality also played a role, with traditional holiday periods slowing down market activities. Compared to the previous quarter of 2024, prices fell by 7%, continuing the negative sentiment. The quarter ended with Dimethylacetamide prices settling at USD 1020/MT (FOB-Nanjing). The pricing environment throughout Q2 2024 has been predominantly negative, driven by a confluence of adverse factors, contributing to a sustained decrease in market prices.
Europe
The Dimethylacetamide (DMAc) market in Europe faced a challenging Q2 2024, marked by a persistent decline in prices driven by several key factors. One of the primary contributors to this bearish market sentiment was the subdued demand from the downstream construction sector. Despite the European Central Bank's (ECB) interest rate cut, which aimed to stimulate economic activity and boost consumption, the construction sector failed to show significant improvement. This sector's sluggish performance was a major disappointment as it traditionally drives a substantial portion of the demand for DMAc. The lack of response to economic stimuli highlighted underlying weaknesses in the sector, reflecting broader economic uncertainties and cautious spending patterns. Additionally, high inventory levels added further pressure on the market. With ample supply already available, market participants were hesitant to increase production or engage in aggressive trading activities, choosing instead to align their strategies with the prevailing low demand. Moreover, the overall trends in Q2 2024 were influenced by seasonality factors, which typically bring fluctuations in demand. However, the usual seasonal upticks were notably absent, exacerbating the bearish sentiment in the DMAc market. This absence of increased seasonal demand contributed to a consistent downward trajectory in prices. The stable yet low activity levels across key sectors like construction underscored the lackluster consumption of DMAc. Consequently, market participants had to navigate a negative pricing environment, adjusting their strategies to mitigate losses and manage the high inventory levels. The combined effects of subdued demand, high inventories, and the lack of seasonal demand surges created a challenging market landscape for DMAc in Europe, resulting in persistently declining prices throughout the quarter.
