Price Trends

According to data from the SunSirs Commodity Market Analysis System, as of April 30, the average quoted price for premium-grade DMF among domestic enterprises stood at 5,760 RMB/ton. Throughout April, the DMF market exhibited a trend of initial gains followed by a subsequent decline. At the beginning of the month, driven by scheduled maintenance at certain production facilities and a temporary uptick in downstream demand, DMF prices began a gradual ascent; enterprise quotations were progressively raised, and market trading activity became somewhat more lively.

Market Analysis

Market Supply: The market supply of DMF had been gradually increasing, while demand growth remains sluggish. Consequently, upward price momentum had weakened, and the market had begun to undergo a correction. By the end of the month, DMF prices had retreated significantly from their mid-month peaks. Overall price volatility was substantial, with distinct regional variations in pricing trends; the East China region—serving as a major hub for consumption and trade—experienced particularly pronounced price fluctuations, whereas prices in the North China region remained relatively stable, albeit still influenced by broader market trends.

Raw Material Costs: The primary raw materials for DMF are methanol and liquid ammonia. In April, methanol prices experienced significant volatility; while prices rose at the beginning of the month, they subsequently declined. Liquid ammonia prices remained relatively stable; nevertheless, overall raw material costs continued to provide a certain level of support for DMF prices. These fluctuations in raw material costs had posed challenges for DMF manufacturers regarding cost control.

Downstream Demand: Polyurethane constitutes one of the primary downstream application sectors for DMF. In April, demand within the polyurethane industry remained lackluster; demand growth in end-use sectors—such as furniture and automotive—was sluggish, failing to generate sufficient pull for polyurethane. Consequently, procurement volumes of DMF by polyurethane manufacturers remained relatively stable, showing no significant increase. Leather Industry: Demand for DMF within the leather industry was also relatively weak. Influenced by environmental regulations and market competition, operating rates at certain leather enterprises remained low, resulting in reduced demand for DMF. Furthermore, the leather industry faced considerable pressure regarding product exports, which further dampened demand for DMF. Electronics Industry: The electronics industry accounts for a relatively small share of DMF demand; moreover, no significant growth was observed in this sector during April. Characterized by rapid product iteration and substantial market volatility, the electronics industry exhibits relatively poor stability in its demand for DMF.

Market Outlook

Analysts at SunSirs specializing in DMF believe that the current situation of ample market supply is unlikely to change in the short term, nor is downstream demand expected to see any significant improvement within this timeframe. Should raw material prices continue to fall—thereby further reducing DMF production costs—prices for the product are likely to trend downward; however, if downstream demand were to show signs of recovery, the extent of this price decline would likely be somewhat limited.

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