For the quarter Ending March 2022
In the first quarter of 2022, Dimethyl Sulphate market sentiments in North America remained mixed. Prices rose at the start of the quarter, then seesawed afterwards. Following the high cost of feedstock Methanol and Sulphuric Acid, DMS prices increased in January. Due to the low production rate, there were insufficient inventories in the regional market to meet the firm demand pattern of Dimethyl Sulphate in the regional market. In contrast, the prices marginally dropped in February 2022. The increase in supplies and weak trading activities contributed to the downward trend, however prices again revived in March 2022. Dimethyl Sulphate DOP Del USWC (USA) prices were assessed at USD 2345/MT during March 2022.
In Q1-2022, Dimethyl Sulphate prices showcased varied sentiments in Asia-Pacific region. Due to the high price of feedstock Methanol and Sulphuric acid in the region, manufacturers of DMS increased its prices due to high production cost. The low production rate caused lack of inventories in the regional market that failed to meet domestic requirements. Furthermore, high freight charges due to the container shortage resulted in the supply shortfall in the Indian market. However, in the mid of the quarter, prices of DMS in the Asia-Pacific region weakened. The drop in the prices was attributed to ample supplies and weak trading activities. Prices of Dimethyl Sulphate Ex-Mumbai were assessed at USD 842/MT, while CFR Hazira were evaluated at USD 791/MT during March 2022.
Dimethyl Sulphate prices in Europe continued to rise during the first quarter of 2022. High prices of feedstock Methanol and Sulphuric acid, and regional supply shortage, had a considerable effect on production rates and operational costs. In early Q1, Dimethyl Sulphate prices rose by nearly 2% in the European region. Furthermore, solvent's demand from downstream pharmaceutical and dyes industries increased in Q1. In addition, with high energy prices in the European region, specific production units reduced their running rates which lessened the availability of the product in the European market.
For the Quarter Ending December 2021
Due to a supply shortage, the price of Dimethyl Sulphate was reported to be on the higher side in Q4. Prices for Dimethyl Sulphate have been on the rise, with recent prices reaching USD 3010/MT Ex-Works FOB Texas in December. Dimethyl Sulphate demand in the pharmaceutical and solvent industries is also expected to increase by the end of Q4 2021.
The price of Dimethyl Sulphate increased marginally in the APAC area this quarter, boosted by increased demand from the domestic market following the lifting of pandemic-related restrictions in the country. In India, rising raw material costs have had a negative impact on a few goods, including Dimethyl Sulphate. Feedstock Methanol and sulphuric acid prices rose in October as a result of low imports and higher production costs, but prices have already begun to fall across the worldwide market. Traders also stated that production halts in China and other nations resulted in a significant shortage of raw materials needed in the pharmaceutical and dye industries. As a result, during December, the price hovered at INR 63270/MT CFR Hazira.
Following a steady rise in the previous quarter, market sentiment for Dimethyl Sulphate dropped in the fourth quarter of 2021. Improved upstream Sulphuric Acid supply, as well as a gradual increase in Crude Oil production, are largely responsible for this shift in market sentiment. Furthermore, the quarter average price for Dimethyl Sulphate in the Germany CFR Hamburg was assessed at USD 2710/MT in the last month of Q4 2021.
The domestic market of Dimethyl Sulphate remained strong in the North American region during Q3 2021 on the back of the consistent demand from downstream pharmaceuticals, chemical, and textile industries. An increment in the supply of upstream Sulfuric Acid was observed during this quarter due to improved refinery utilization in the US. Increased Supply of Dimethyl Sulphate across the region may result in a price decline in the upcoming months.
The domestic market price of Dimethyl Sulphate witnessed a decent rise across the Asia Pacific region in the 3rd quarter. In the Indian market, Dimethyl Sulphate prices witnessed marginal improvement in the month of July, bolstered by improved demand from the downstream markets after ease in pandemic-related restrictions in the country. Dimethyl Sulphate price in India was last assessed at USD 662 per MT in September. Asian manufacturers were heard gradually revising their prices under optimism of the forthcoming festive season, while current demand from dye, pharma, and agrochemicals segments is literally modest.
The overall market outlook of Dimethyl Sulphate showcased mixed sentiments in the third quarter of 2021 across the European region. Domestic manufacturers gradually revised their prices from July under optimism of the forthcoming festive season. The prices of energy products (total) rose 0.7% over August and energy crisis posed another challenge among the European producers during the quarter. Increased freight cost and constrained availability of the raw materials further impacted the pricing trend of Dimethyl Sulphate across the region.