Asia
The global dimethyl carbonate market exhibited extreme volatility during the said period, primarily following the trajectory of its key feedstock methanol. During the first half of the quarter, DMC prices tumbled as methanol costs decreased and Chinese demand weakened.
The domestic battery manufacturing sector showed reduced consumption patterns, while demand from the solvent applications remained tepid. However, prices turned northwards during mid-August given the extreme tensions in the Middle East, which affected methanol supply routes and production. This upward trend was short-lived as prices soon declined again, with the weak economic outlook outweighing supply concerns. The falling feedstock prices along with lacklustre demand from the downstream sectors further impacted the concerned market.
Europe
The erratic behaviour of DMC prices was prevalent in the domestic European markets as well. The initial decline followed weak methanol feedstock costs, but prices rebounded during the Middle East crisis. However, other weakening macro-economic factors soon overtook the market fundamentals. The gradually softening demand from the automotive coatings and lithium-ion battery sectors, along with oversupply issues, readily affected DMC prices.
North America
Concerns over falling domestic demands and fluctuating feedstock costs led to volatility in DMC prices in the US domestic market. While the Middle East tensions briefly supported prices, the market soon stabilized at lower levels due to adequate supply and moderate demand from the electronics and pharmaceutical sectors. Manufacturing units adjusted production rates to manage growing inventory levels amid uncertain market conditions.