1、 Price trend
According to the Commodity Market Analysis System of Shengyi Society, as of March 30th, the average quotation price of domestic high-quality DMF enterprises was 5500 yuan/ton. The DMF market price has recently risen narrowly, and currently the DMF market is operating in a narrow and strong direction.
2、 Cause analysis
In terms of the market, the upstream methanol market is currently experiencing strong price fluctuations, with limited room for price increases and limited support for DMF costs. Dimethylamine supply is concentrated, mainly produced by large enterprises with high industry concentration and relatively stable prices. The DMF market supply is stable.
Demand side: Currently, the downstream demand for DMF in the market is average, with a decreasing proportion but still the main force. It used to occupy half of DMF consumption for a long time, with a proportion of up to 59% in 2021 and dropping to around 42% in 2025. Pharmaceutical and pesticide intermediates have rigid demand and are steadily growing. As an important solvent for organic reactions, DMF is irreplaceable in the synthesis of antibiotics, anti-tumor drugs, and pesticides. By 2025, the proportion of consumption in this field will increase to 28%, and the demand for high-purity (pharmaceutical grade) products will continue to rise. The process of domestic substitution will accelerate, and electronic chemicals will be the largest growth engine, with an average annual growth rate of 18.5%
3、 Future forecast
DMF analysts from Shengyi Society believe that the DMF market is mainly operating in a strong direction with limited upward potential, and the overall market supply and demand are balanced.