Dimethyl Formamide Prices decline amidst stable demand and weak Feedstock in Asia

Dimethyl Formamide (DMF) price in Chinese market witnessed a downward trajectory owing to weak Methanol prices and steady demand from downstream industries. The raw material Dimethylamine noticed downward movement with declining upstream Methanol, which slowed down on the back of the volatile natural gas price. Thus, as of March 21, the DMF market price dropped by 3.23% and settled at USD 2355 per ton whereas in India DMF bulk price got assessed at USD 2914/ton E-Depot Mumbai in the month of March.

Dimethylformamide (DMF) is a colorless, absorbent liquid mainly used as a solvent to produce acrylic fibres. DMF demand is primarily from the chemical &Textile industries owing to its high uses as solvents and clothing material. Some of the major companies producing DMF include Eastman Chemical Company (USA), BASF SE(Germany), Mitsubishi Gas Chemical (Japan), Zhejiang Jiangshan Chemical Co, Ltd. (China), Balaji Amine (India).

In China, the Dimethyl Formamide market slowed down, supported by the stagnant demand from downstream industries. In contrast, manufacturers have been operating at optimum rates seeing the current covid situation in the domestic market hampering the product's shipping. Thus, seeing stable demand amid the product's availability caused the manufacturers to cut down their rates as the inventories has been termed as firm in the domestic market.

The primary manufacturer Jinan Yingsen Chemical Co., Liaocheng Quinze Chemical Products Co., Ltd Ltd, Jinan Jinrihe Chemical Co., Ltd, Shandong Chengze Chemical Co., Ltd, dropped their rate to 2355/ ton. In contrast, Dongying Jinying Chemical Co., Ltd dropped it by 2512/ton & Jinan Jinhao Chemical Co., Ltd by 2575/ton.

As per the ChemAnalyst, “the price for dimethylformamide continue weak to stable trend as downstream demand is unlikely to increase in the short term while, upstream Methanol prices have gained in last few days which may impact overall pricing of DMF.”