Price trend

According to the commodity market analysis system of SunSirs, as of June 12, the average quoted price for premium-grade DMF from domestic producers stood at 4,760 RMB/ton. The industry's operating rate ranged from 65% to 70% last week, marking a slight decline from the previous week; some small and medium-sized enterprises reduced operating loads or undertook short-term maintenance due to inverted profit margins. Overall, the DMF market remained stable throughout the week.

Analysis of Causes

Market Supply: As of the 12th, DMF inventories remain high, and operating rates are holding steady at 65%-70%. Small and medium-sized producers may further reduce operating loads, yet the pattern of ample supply persists; overall, the supply side remains loose, limiting upward price momentum. With inventory depletion proceeding slowly, mainstream prices are fluctuating within the 4,600-4,900 RMB/ton range; while high-end products show price resilience, there is insufficient impetus for a significant price surge.

Regarding the market: Downstream demand is limited to small, essential orders, with little appetite for bulk purchasing. Upstream suppliers face high inventory pressure and are primarily offloading stock at lower prices; consequently, the focus of price negotiations has shifted downward, and prices remain stable with a bearish undertone. Trading is sluggish amidst intensifying market contention. This week, DMF prices fluctuated within a narrow range with a downward bias; spot trading remained quiet as upstream and downstream parties engaged in a fierce tug-of-war.

On the demand side: The traditional sector remains in the off-season, with little improvement in demand for PU slurries, while essential demand from the pharmaceutical and electronics sectors remains stable without significant growth. During the third quarter—the peak season for footwear and apparel—demand for PU slurries saw marginal improvement; meanwhile, demand in the pharmaceutical and electronics sectors grew steadily, and demand in the lithium battery sector increased.

Market Outlook:

Analysts at SunSirs believe that the DMF market is expected to fluctuate at low levels in the short term; with ample supply and limited downstream demand, the market is likely to trade within a narrow range with a weak undertone.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.