Global DMF Market Navigates Sustained Declines Amid Industry Disruption and Weaken Demand
Global DMF Market Navigates Sustained Declines Amid Industry Disruption and Weaken Demand

Global DMF Market Navigates Sustained Declines Amid Industry Disruption and Weaken Demand

  • 20-Nov-2023 2:42 PM
  • Journalist: Jacob Kutchner

FOB-Texas: The Dimethylformamide (DMF) markets across the globe are navigating a challenging landscape marked by sustained price declines. In the US, disruptions in polymer and textile industries have led to reduced DMF consumption and oversupply, coupled with weakened exports. The European market echoes this trend with satisfactory supply but diminished purchasing activities, especially from the textile and agrochemical sectors. Similarly, China grapples with reduced demand, particularly in textiles and agrochemicals, intensifying the global downward trend.

The US DMF market has witnessed a sustained decline in prices, influenced by demand uncertainty arising from disruptions in the polymer and textile industries. Reduced consumption of DMF in these sectors has resulted in inventory build-up. Exports to Asian and South American regions have dwindled due to subdued inquiries from downstream industries. Continuous material inflows from the manufacturing units have caused an oversupply of product in the US market, while market procurement fundamentals maintain a bearish stance. Muted spot trading activities and fewer product requests are observed as industries operate at reduced capacities amid weak demand. Downstream manufacturing units, especially in the textile sector, have curtailed production rates to prevent excessive stockpiling, contributing to decreased demand. Despite feedstock formaldehyde and Dimethyl Amine remaining stable at their upper ends, the continuous weakness in crude oil prices has lowered the production cost of the fresh product, further hampering the DMF market the breakout its declining trend.

The European DMF market has mirrored the global declining trend. The domestic regions have witnessed satisfactory supply and reasonable inventories, leading to a decline in purchasing activities from enterprises. The attitude towards the demand is still dubious, on the back disrupted market sentiments from the downstream industries such as textiles and agrochemical sectors. Additionally, manufacturing PMI showed a slight decline in November, indicating a fragile and weak manufacturing sector with diminishing demand. This shift in the market is significantly influenced by the ample inventories in these sectors, resulting in subdued trading activities.

Similarly, the Chinese DMF market is witnessing a pronounced decline in prices, reflecting global trends. The Chinese market is grappling with reduced demand from crucial sectors, particularly textiles and agrochemicals adding to the challenging market dynamics. Satisfactory supply and reasonable inventories in domestic regions, with weak purchasing activities from enterprises continue to disrupt market sentiments. Additionally, the continuous weakness in crude oil prices globally has further intensified the market's downward trend, influencing the cost dynamics of DMF production. The ample inventories prevalent in various sectors are shaping a market environment characterized by uncertainty, hesitant demand, and a noteworthy price descent in the Chinese DMF market.

The DMF markets globally may face a challenging outlook in the coming weeks. The disruptions in key industries, coupled with oversupply and weakened demand, are anticipated to persist in the US, Europe, and China. The influence of continuous weakness in crude oil prices on production costs, coupled with ample inventories, is likely to contribute to the prevailing downward trend. ChemAnalyst forecasts point towards an environment characterized by uncertainty, hesitant demand, and notable price descents across the DMF markets.

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