Dimethyl sulfone

Recent Market Dynamics for Dimethyl Sulfone (DMSO)

1. Price Trends
- Over the past week, the domestic market price for dimethyl sulfone has shown a stable, slightly upward trend. The mainstream transaction prices have fluctuated within the range of 12,000–13,000 RMB/ton, with some high-end products seeing slight increases to around 13,500 RMB/ton.
- Compared to the same period last month, the average price increase is approximately 3%. Year-on-year, the price has risen by 8%.

2. Supply Situation
- The operating rates of domestic dimethyl sulfone producers remain around 75%–80%. Some fluctuations in operating rates have occurred due to equipment maintenance or raw material supply issues.
- New production capacity is currently in the commissioning phase and is expected to enter the market within the next 1–2 months. However, its impact on short-term market supply will be limited.
- Import volumes remain relatively stable, primarily sourced from Europe and the United States. Import prices have adjusted slightly due to international market fluctuations, but their overall impact on domestic prices remains minimal.

3. Demand Situation
- Downstream demand shows differentiation. As the primary consumption sector, the pharmaceutical industry maintains steady demand growth, requiring high product quality and exhibiting lower price sensitivity.
- Demand in the cosmetics sector has increased. Driven by consumer preference for natural and healthy cosmetics, the application of dimethyl sulfone in cosmetics has gained traction, boosting demand for certain high-end products.
- Demand in the feed additive sector has remained stable, influenced by the cyclical nature of the livestock industry, with no significant fluctuations observed recently.

4. Cost Factors
- The price of the main raw material, sodium mercaptan, has remained relatively stable. However, auxiliary raw materials such as sulfur have seen price increases due to international market dynamics and domestic environmental policies, leading to higher production costs for dimethyl sulfone.
- Energy costs, including electricity and steam, have shown minimal fluctuations, having a limited impact on production costs.

Analysis and Judgment

1. Reasons for Price Increases
- Steady growth and increased demand from the pharmaceutical and cosmetics sectors have provided strong support for price increases.
- Rising prices of auxiliary raw materials have compelled manufacturers to adjust prices upward to maintain profit margins.
- Fluctuations in the operating rates of some enterprises have led to localized supply tightness, further driving prices up.

2. Market Supply-Demand Balance
- The market is currently in a state of basic supply-demand balance. However, considering the imminent entry of new production capacity, supply pressure may gradually increase in the future. Nevertheless, the steady growth in downstream demand, particularly from the pharmaceutical and cosmetics sectors, is expected to absorb the additional supply over a certain period.

Forecast

1. Short-Term (1–2 Months)
- Prices are expected to remain stable with a slight upward trend, with an increase of approximately 2%–3%. As new production capacity completes commissioning, market supply will gradually increase. However, robust downstream demand will prevent significant price declines.

2. Medium-Term (3–6 Months)
- If new production capacity is successfully deployed, supply will increase significantly, intensifying market competition. Prices may experience a moderate correction, estimated at 5%–8%. Continued steady growth in downstream demand will provide some support for prices.

3. Long-Term (Over 6 Months)
- Market prices will gradually stabilize, fluctuating within a reasonable range under the combined influence of supply-demand dynamics, cost changes, and industry competition. If new growth drivers emerge in downstream sectors or significant policy changes occur, price trends may adjust accordingly.