For the Quarter Ending March 2022
In Q1 2022, the cost of Dimethylacetamide slipped all through the quarter in USA as a result of weak Acetic acid market and deterred market sentiments. Further deteriorating demand is set to continue as operating rates for significant derivative portions including adhesive and dyes endeavours were apparently high in the U.S and gave fragile perceivability on prices with the succeeding month of the quarter. We've additionally seen first the tepid visibility in the medium-term pricing environment kept on expecting adequate feedstock methanol inventories with feeble market essentials decreasing the costs. Exports to European Nations were also affected as the oversupplies of product in the overseas affected the expenses. In this quarter, the cost of Dimethylacetamide in January observed to be USD 3670/ton CFR Texas.
In Q1 2022, the cost of Dimethylacetamide remained stable with tepid market sentiments in the domestic market of India. In February 2022, The Bureau of Indian Standards (BIS) had bound to compel new quality control rules for Methanol imports which make issues for the vendors to meet the specifications. Underlying market opinions for Naphtha stays weak on determined worry over offset olefin and aromatic margins. Usage of Dimethylacetamide in adhesive ventures was moreover extended with accelerating demand from the end users. In India, the expense of Dimethylacetamide towards the quarter end was assessed to be USD 2555/ton Ex-Mumbai. In China, the market remained feeble, and the Commodity Exchange prospects similarly decreased as the interest from downstream endeavours was not consistent.
European Dimethylacetamide market remained on the lower side with declining demand in Q1 2022 when compared with previous quarter. Demand remained frail and the stockpile was adequate which brought such expense design. Major downstream derivative producer organizations had kept up with costs on their product regardless of slow interest and accumulation of inventories. Feedstock Acetic Acid showed level of frail trading environment and producers had moved from negotiation mechanism and rather decreased the expenses on account of sufficient accessibility and lower production cost. Downstream adhesive industries had in like manner slipped, and the demand/supply harmony became unstable. In Germany, the price of Dimethylacetamide during January were observed to be USD 4025/ton FD Hamburg.
For the Quarter Ending December 2021
High raw material cost amid stable offtakes from the domestic downstream sectors, pushed up the prices of several commodities including Dimethylacetamide (DMAC) across the region. Pharma sector of USA showcased overall stability during this timeframe, while major pharma intermediates and raw material climbed up on the back of inflationary pressure induced due to high upstream values and high domestic consumption. In addition, export demand also remained buoyant from European market, as rebound in regional consumption and soaring input cost compelled European traders to look forward for cheaper imports from other regions. Conclusively, DMAC price remained buoyant throughout the quarter while showcasing marginal fluctuations of around USD 80-120/MT during Q4 2021.
On the back of soaring upstream cost, drastic change in Dimethylacetamide (DMAC) prices has been observed throughout the quarter. Several downstream consumers from paints and pharma sector were very cautious about this steep inclination in price trend of the product. Furthermore, after government decision on removing charges from keeping shipping container for more than waiting time at port down, exporters were able to export more cargoes than before, and thus export activities improved respectively from India. DMAC price revolved around USD 2180/MT during December in India. Meanwhile, Chinese market remained cautious about rising cost of several commodities including DMAC in the country. On the other hand, production contains across the country, due to soaring energy cost and dual energy policy related restrictions.
Rising raw material cost caused concerns for major European players as the domestic demand for the pharma products remained modest to form while consumption as well as well regional trade activities were high in the meantime. In addition, UK market heard facing difficulties in domestic transport due to shortage of labour force. Furthermore, exorbitant surge in natural gas value also remained a matter of concern for regional players, as upstream values surging in uncontrolled manner. Thus, between this market turmoil, DMAC price maintained overall firmness throughout Q4 2021 in Europe.
The prices of Dimethylacetamide rose effectively in the North American region during Q3 2021 owing to strong demand from the downstream agrochemicals, pharmaceuticals, and synthetic fibers (Polyacrylonitrile and polyurethane) markets. In terms of supply, it has remained tight throughout Q3 due to a continuous rise in the prices of upstream feedstock Acetic Acid. Limited availability of raw materials and increased shipping charges and high freight costs are some of the factors that resulted in the upward momentum of dimethylacetamide prices across the region in this quarter.
The domestic Asian Market witnessed an upward trajectory in the third quarter of 2021. In India, the prices of dimethylacetamide have been on a constant rise throughout the quarter due to the strong demand from the agrochemicals, pharmaceuticals, and textile industries. The supply has been disrupted in Q3 due to consistently increased prices of upstream acetic acid in the region. Dimethylacetamide FOB Mumbai (India) prices shot up from USD 1899/MT to USD 2037/MT from July to September. High freight charges and constrained material availability have further caused an increment in the pricing trend of dimethylacetamide in Q3 2021.
The market trend of Dimethylacetamide witnessed an upward trajectory across the European region in Q3 of 2021. In terms of demand, offtakes from the downstream pharmaceutical and agrochemical sector improved during this quarter. Taking support from soaring feedstock prices and tight availability of raw materials amidst stable to firm demand, prices of Dimethylacetamide significantly increased in Europe in Q3.