For the Quarter Ending June 2023
North America
During the second quarter of 2023, the Dimethyl Sulphate (DMS) market in the United States experienced a bearish trend, resulting in declining prices and weak demand from downstream industries. In May 2023, DMS prices decreased by 4% on a monthly basis, driven by cheap imports reaching the US shores. Steady imports from APAC countries contributed to softened pricing dynamics, reflecting the overall market sentiment in the Asian region. The supply in the US market remained moderate, with imports from China, South Korea, and other countries being on the cheaper side, further easing prices. The freight and energy markets reached normalcy and had a limited impact on final negotiations. In the domestic market, DMS prices were plunging, and operating rates in manufacturing plants remained weak due to a lack of fresh orders from buyers. Manufacturers produced DMS only on immediate demand as downstream buyers were cautious in their purchases, leading to surplus inventories. The bearish market situation for US Dimethyl Sulphate (DMS) during Q2 2023 was further impacted by port shutdowns at the Port of Long Beach and Los Angeles. These shutdowns likely disrupted the supply chain and caused logistical challenges, contributing to the moderate supply situation in the market. After Q2 2023 ended, Dimethyl Sulphate prices in the US were assessed at USD 1270 per MT on a FOB basis.
APAC
During the second quarter of 2023, the Dimethyl Sulphate (DMS) market in India experienced a bearish trend, primarily driven by the dynamics of imports and demand from downstream industries. In June 2023, DMS prices declined by 0.9% on a monthly basis due to steady import prices and consistent demand pressure from downstream industries. Imports remained stable as exporting nations witnessed ample demand, and the freight market also remained stable during this period. Similarly, in May 2023, DMS prices decreased by 1.4% on a monthly basis, attributed to the influx of cheap imports from neighboring APAC countries. Pricing dynamics softened, reflecting the overall market sentiment in the Asian region. Freight and energy markets also reached normalcy, exerting limited impact on the final negotiations. The demand for DMS from downstream pharmaceuticals and agrochemicals industries showed optimism in both months, with ample new queries and active procurements. However, overall demand was considered moderate. On the currency front, the Indian Rupee appreciated by 0.22% against the United States Dollar in June but depreciated by 1.15% in May 2023. After the conclusion of Q2 2023, Dimethyl Sulphate prices in India were assessed at USD 1125 per MT on a FOB basis
Europe
During Q2 2023, the demand for Dimethyl Sulphate (DMS) displayed a mixed trend. While the downstream flame retardants industry showed stable demand, the consumption of polycarbonates remained lackluster due to the underwhelming performance of the construction industry. LANXESS, a key player in the chemical sector, reported these market dynamics amid challenges posed by high inflation rates, declining overall demand, and weak cost support from upstream Brent crude oil. Furthermore, the freight market declined throughout the quarter and added an element of relief for market participants. As trading activities slowed down in Europe, shipping costs eased, reducing the overall cost burden for transportation and making DMS more accessible to buyers in the region. However, weak demand sentiment meant limited active procurements. As of June 2023 ending, Dimethyl Sulphate prices in Europe were assessed at USD 1355 per MT on an FD basis.
For the Quarter Ending March 2023
North America
In the North American region, Dimethyl Sulphate (DMS) prices deescalated during the first quarter of 2023 on the back of sluggish market fundamentals. According to market participants, decreasing consumption of downstream pesticides, dyes, and surfactants led to weak demand from the domestic and overseas markets, easing the demand pressure on the DMS market. However, operating rates remained weak in the manufacturing plants as there were no fresh orders from buyers. In the US domestic market, manufacturers produced DMS only on any immediate demand as downstream buyers were purchasing cautiously. Additionally, no surplus inventories were reported, therefore no supply pressure over the product. Consequently, the price of Dimethyl Sulphate in the US settled at USD 2660/MT as of March 31.
Asia- Pacific
During the first quarter of 2023, Dimethyl Sulphate (DMS) prices in the Asia-Pacific region demonstrated an overall downward trend. The DMS market had a negative start to the quarter due to a decline in procurement from downstream industries such as pesticides, dyes, and surfactants industries. Purchasing activities from Asian and European countries toned down amid weakened demand. Furthermore, domestic merchants reported a depletion in their inventory level while still meeting the few orders on an urgent basis. Firms that produce DMS decreased their prices and even dropped their operating rates. Therefore, market transactions remained muted, with inadequate support to the DMS market.
Europe
In the European market, Dimethyl Sulphate (DMS) prices remained on a downswing during the first quarter of 2023, along with inappreciable demand from downstream pesticides, dyes, and surfactants industries in the region and limited instances of new orders. Despite the decline in prices, some DMS manufacturers continued to operate at a loss, which led to production cuts. Also, the supply of DMS remained limited owing to decreased production capacity, which led to low inventories in the domestic market. Moreover, market players were reported to have chosen a cautious stance and to be keeping an eye on the short-term market outlook.
Dimethyl Sulphate (DMS) prices have witnessed mixed sentiments in the USA market during the fourth quarter of 2022. During October, prices increased slightly due to high inflation and volatile energy prices. Demand from the downstream agrochemical, dyes and allied industries has been stable in the regional market. Although, during November and December, DMS, both domestically produced and imported materials, have been priced lower. The decline in prices has been attributed to weak demand dynamics from downstream agrochemical, dyes, and allied industries, while material availability has remained strong amid firm imports on the USA shores. Meanwhile, feedstock Sulphuric acid and Methanol prices have dropped, which weighed down the prices of DMS in the regional market.
Prices of Dimethyl Sulphate showed fluctuation in the Asian market during the fourth quarter of 2022. In China, during the first month of Q4, DMS prices raised, backed by the increased demand and inadequate inventory level. In addition, feedstock Methanol and Sulphuric acid prices increased, resulting in the high production cost of DMS in the domestic market. However, during the last two months of Q4, DMS prices decreased, supported by the weak demand dynamics amid soft consumer sentiment caused by the slow performance of the downstream agrochemical, dyes industry, and covid lockdown, while ample product availability, leading to the price drop of DMS in the domestic market.
Prices of Dimethyl Sulphate (DMS) dropped in the European market throughout the fourth quarter of 2022 as downstream demand remained weak while material availability improved throughout the quarter. Dimethyl Sulphate imports from Asia improved in European ports as the freight charges declined sharply while the demand dropped in the Asian market. In addition, energy (Natural gas) prices stabilized in the regional market after the turmoil in Q3, which softened the production cost of DMS. Meanwhile, demand from the downstream dyes, perfumes, and agrochemicals, along with other competitive industries, remained subdued due to sluggish buying sentiment and the slow growth of the key industries.
