SunSirs: The DMF Market was Stronger in June, and the Price Increased Slightly

Price trend

According to the Commodity Market Analysis System of SunSirs, as of June 30th, the average quotation price of domestic high-quality DMF enterprises was 4,170 RMB/ton. In June, the DMF market saw a narrow upward trend with a slight increase in price. Compared with the same period last month, the price rose by 1.96%, an increase of about 100 RMB/ton. As of June 30th, downstream demand was average, and the spot market supply was sufficient.

Analysis review

In terms of cost: Upstream methanol ports replenished empty orders within the month, and short-term Taicang spot goods may remain relatively strong. Some domestic cargo continued to flow into the port for arbitrage, which had a certain impact on the port market. There is a high possibility of a decline in the port market. There were serious differences in the mentality of mainland industry players. As of June 30th, downstream was in the traditional off-season, but the operating rate remained high. There are news of maintenance in the methanol market in July, and the supply side may tighten. Some traders had the willingness to hold goods.

On the demand side: As of June 30th, downstream demand for DMF was limited, procurement was mainly on demand. In July, some units underwent maintenance, which has a certain boosting effect on the market. Traders were cautious in their operations and had a strong wait-and-see atmosphere.

In terms of supply, the DMF market had a stable operating rate, sufficient spot supply, downstream on-demand procurement, average willingness to stock up, and slow warehouse shipments were the main factors. As of June 30th, the supply and demand balanced in the DMF market, and it needs to continue to monitor the pace of downstream procurement.

Market outlook

DMF analysts from SunSirs believe that the downstream DMF market was temporarily at a low season level, with slow overall market shipments, balanced supply and demand, and sufficient spot supply. It is expected that the DMF market will operate steadily with a stronger trend in the short term.

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