Dimethylamine Prices See Marginal Uptick Amid Rising Feedstock Costs and Strategic Supplier Actions

In the global market, Dimethylamine (DMA) prices experienced a marginal increase as of mid-September. This uptick in the DMA price is primarily driven by rising feedstock costs, particularly Ammonia and Methanol. Additionally, proactive supplier actions, including effective inventory management in response to ongoing demand, have played a significant role in supporting the price increase. As suppliers adjust their stock levels to align with market conditions, this combined influence of higher raw material costs and strategic inventory control has contributed to the observed price movement in the DMA market globally.

In the US market, the price of DMA reached 3,000 USD/MT DEL-USGC, marking a marginal 0.3% increase over the past two weeks of September. Ammonia prices surged by 5.4%, driven by long buildup activities from market participants. This rise in ammonia prices coincided with increasing natural gas costs due to supply disruptions caused by Hurricane Francine, which significantly impacted Louisiana, leading to an estimated 0.8 Bcf/d shutdown in Gulf of Mexico production. Methanol prices remained stable at higher levels. Additionally, the hurricane disrupted trading activities, hampering the DMA supply chain. However, the downstream Pharmaceutical, Rubber and the Personal Care sector continued to perform positively, boosting demand for DMA. The Association of American Railroads reported a decline in chemical railcar loadings to 32,444 for the week ending September 14, although this figure reflects a 4.7% increase compared to the same week last year. US chemical import prices rose by 0.1% in August but were down 1.7% year-over-year, while export prices increased by 0.1% and were down 0.6% year-over-year.

In the European market, particularly Germany, the price of DMA increased by 0.3% to 3,150 USD/MT FOB-Hamburg. Concurrently, ammonia prices rose by 5.45%, primarily due to constrained supply of essential raw materials, with traders concerned about potential supply chain risks stemming from geopolitical tensions in the Middle East and the Ukraine-Russia border, particularly in Kursk. Despite this, methanol prices remained stable. However, the overall downstream market demand for DMA is not recovering, which is negatively impacting its demand. Additionally, severe weather, including heavy rainfall and snowfall forecasted through September 17, could lead to flooding and landslides in Bavaria and Saxony, causing travel disruptions and utility outages. These adverse conditions are further straining the supply chains for various commodities, including DMA, in the European market. These factors have cumulatively influenced the pricing dynamics of the DMA in the European market.

According to ChemAnalyst's forecasts, the price of DMA is expected to exhibit bullish trends in the coming sessions. This anticipated increase in the DMA price is primarily driven by rising prices of key feedstocks, particularly ammonia and methanol. Additionally, the overall disruption in supply chains caused by recent weather effects is likely to impact DMA pricing dynamics, potentially leading to upward pressure on costs. As the market responds to these factors, stakeholders should monitor developments closely to navigate the evolving pricing landscape effectively.