For the Quarter Ending March 2024
North America
During the first quarter of 2024, the North American market for Dimethylformamide (DMF) witnessed a notable increase in prices, primarily driven by several key factors affecting the broader chemical industry. One significant factor was the sharp rise in methanol prices, which is crucial to produce Dimethylformamide, a precursor in DMF manufacturing. However, the downstream market the Pharma, Paints, Dyes, and the Pigments sectors witnessed an outperformance while the Agrochemical pesticide sectors underperformance throughout the quarter.
As suppliers faced rising input costs, they adjusted their pricing strategies, accordingly, setting higher price targets for DMF to offset the increased production costs. This adjustment was further compounded by an increase in demand across various sectors, which naturally led to an upward pressure on prices.
In the United States, the price of Dimethylformamide, and by extension DMF, has seen the most significant changes compared to other countries in the region. This reflects the specific market dynamics in the U.S., where industrial demand patterns and the impact of raw material costs are particularly pronounced. Overall, the first quarter of 2024 marked a period of escalating prices for DMF in North America, influenced by the dual pressures of rising raw material costs and strengthening demand. These factors combined to create a more costly market environment for DMF, impacting suppliers and consumers alike.
APAC
In Q1 2024, the Dimethylformamide market in the APAC region experienced a significant decrease in prices. Various factors contributed to this downward trend, including weak demand from downstream industries, such as textiles and pharmaceuticals, and oversupply of the product. The market was also influenced by fluctuations in the prices of feedstock, such as Dimethylamine and Methanol, as well as changes in energy costs and operating expenses.
These factors combined to create a bearish market sentiment. China saw the maximum price changes in the Dimethylformamide market. The market participants have continuously engaged in the destocking of the inventories resulting into lower biddings for the fresh accumulations. The price change from the previous quarter in 2024 was recorded at -10.90%, indicating a continued decline in prices.
As the quarter came to an end, the latest price of Dimethylformamide in China was USD 613/MT FOB-Nanjing. This price reflects the prevailing negative sentiment in the market, with prices continuing to decrease. Overall, the pricing environment for Dimethylformamide in the APAC region during Q1 2024 was negative, with prices experiencing a significant decline. The market was characterized by weak demand, oversupply, and fluctuations in feedstock and operating costs.
Europe
During Q1 2024, the European Dimethylformamide (DMF) market experienced a notable downturn in prices, impacted by a convergence of challenging factors. Primary among these was a subdued demand from the downstream fertilizer sector, influenced significantly by adverse weather conditions and the end of the winter planting season. Additionally, escalating energy prices have spurred ongoing farmer protests across the region, which further curtailed purchasing enthusiasm and reduced demand for DMF, ultimately exerting downward pressure on its prices. The market's bearish trend was underscored by an abundance of supply paired with diminished demand. The peak planting season had concluded, and the continued unfavourable weather further weakened the market demand for DMF. This imbalance between supply and demand led to surplus availability, narrowing the gap between them, and contributing to a significant reduction in prices. In summary, the European DMF market during the first quarter of 2024 was characterized by a negative pricing environment. Prices followed a downward trajectory, influenced by weak demand, challenging weather conditions, and an oversupply in the market. This period highlights the sensitivity of chemical markets to external economic and environmental factors, reflecting a broader trend of market volatility in the face of fluctuating demand and supply dynamics.
For the Quarter Ending December 2023
North America
The market for Dimethylformamide saw a rise in comparison to the previous quarter, which was mostly caused by higher freight costs in the fourth quarter. The favorable conditions in the feedstock market, coupled with cost-effective production, were influenced by the tensions between the international markets.
The increase in the freight charges at the respective routes, and the tension between the Middle East and the Panama Canal low-level issue also contributed to a surge in price in the US market. Moreover, the high production costs were attributed to the inclination in the Dimethylformamide market during October. Additionally, an increase in utility costs during November across various manufacturing industries has fueled the price surge for this month. The Industrial Purchasing Managers' Index (PMI) has seen a noticeable decrease compared to October.
However, due to high market participant stocks and weak local and regional demand, dimethylformamide prices in the US market declined in December 2023. During this time, destocking attitudes among the players and a decline in downstream consumer sentiment affected the price of dimethylformamide in the US.
APAC
The APAC Dimethylformamide market witnessed a bearish trend in Q4 of 2023 due to the high supply of the product over low demand. The market remained stable during December due to the smooth operation of the supply chain without any disruptions. The demand for Dimethylformamide remained low to moderate due to reduced consumption from vital sectors like textile and adhesive. The value of the product was under pressure due to poor demand for Dimethylformamide from both domestic and foreign markets in the textile and coating sectors. Because of the current abundant stocks and weak market environment, buyers were cautious when making large commitments. Because of this cautious approach, the trade dynamics became more muted, which forced sellers to entice buyers with discounts in order to stimulate interaction. The percentage change in prices in last year's Q4 was -46%, while the percentage change from the current to the previous quarter was -18%. The price percentage comparison of the first and second half of the quarter was -7%. The current quarter-ending price of Dimethylformamide FOB-Nanjing in China was USD 688/MT.
Europe
The Dimethylformamide market in Europe witnessed a mixed market sentiment during the fourth quarter. However, comparatively, the market showcased a significant incline during Q4 relative to the third quarter. During October, the price of Dimethylformamide in Germany witnessed a surge in price due to an increase in the price of feedstock like Methylamine in the market. The macroeconomic outlook remains extremely uncertain in the current interest rate policy environment and in view of increasing geopolitical risks. Rising raw materials prices were weighing on the demand and margins of the major industries in Germany. Furthermore, the European Union's statistical body, Eurostat, has released flash data that indicates the October 2023 inflation rate for the Euro area was 2.9%, a decrease from September's 4.3% rate. According to the German Statistics Agency's latest recent data, the inflation rate was recorded as 3.8 positive in October 2023. However, Dimethylformamide has remained widely available in the German market during December, with suppliers maintaining substantial stockpiles. The price fall has been attributed in part to China's dumping effect. The oversupply scenario has caused the price of Dimethylformamide to decline, which was attributable to the adequate availability of inventories.
For the Quarter Ending September 2023
North America
In the United States market, the Dimethylformamide (DMF) prices displayed an overall declining trend in the third quarter of 2023. As the quarter began, the DMF market witnessed a decrease in its pricing. The downstream sectors, including textiles and coatings, showed varying demand patterns, which contributed to a sense of caution prevailing in the market. Furthermore, the continuous influx of DMF material from domestic and international sources resulted in an oversupply of the product. This oversupply situation, combined with reduced demand from downstream industries, led to buyer hesitancy in committing to significant purchases. Market participants favored immediate stock procurement over bulk buying, resulting in muted trading activities and prompting sellers to offer discounts on DMF products. Moving further into Q3, the US DMF market continued to experience a declining price trend, mirroring the persistent weak demand from downstream industries such as adhesives, coatings, textiles, and more. These subdued market sentiments, influenced by concerns about weak market fundamentals and manufacturing uncertainty, have made industry players cautious about investments in the product. Despite some positive signs, including potential growth in textile production to meet new orders, investor confidence remains tempered in light of the prevailing market challenges. The US DMF market grappled with complex dynamics that contributed to prices declining throughout the quarter.
APAC
In the Asia-Pacific region, the Dimethylformamide prices showed an overall declining price trend in the third quarter of 2023. As the quarter commenced the market of Dimethylformamide witnessed decrement in its pricing. The downstream sector, which encompasses the textile and coating industries, demonstrated varying demand patterns, leading to a cautious approach in the market. Moreover, a consistent inflow of material from Chinese to other Asian and international kept the market oversupplied with the product. Market left buyers hesitant to engage in significant purchases, as high inventory levels coincided with subdued demand from the downstream industries. Furthermore, market participants opted for immediate procurement of stocks rather than bulk purchasing, resulting in subdued trading activities and compelling sellers to offer product discounts. Further moving forwards in Q3, the Chinese Dimethylformamide market finds itself on rocky ground with a further decrement in its market value, The demand outlook from the downstream industries such as Adhesive and coating textiles remained at its lower end which exhibits weaker market sentiments, putting industry players on edge, however in recent times the Chinese Textile industries have looked forward to surging their production rate on account to complete new orders. However, investors remained cautious about investment in the product in the wake of weak market fundamentals.
Europe
In the European region, the Dimethylformamide (DMF) market experienced a pronounced declining trend during the third quarter of 2023. This trend was marked by a decrement in DMF prices as the quarter commenced. The downstream sectors, including textiles and coatings, showed fluctuating demand patterns, giving rise to a cautious approach within the market. Additionally, the persistent inflow of DMF material from various sources, both domestic and international, resulted in an oversupply of the product. While the market initially faced weaker demand, further challenges emerged as reflected by the weakened Purchasing Managers' Index (PMI) and rising recessionary fears. Reduced manufacturing activities and industrial output added to the woes, leading to a decreased demand for DMF from sectors like adhesives, coatings, and textiles again. These factors compounded the challenges in market sentiment, and the declining trend continued throughout the quarter. The weakened PMI index and recession fears further fueled this downward trajectory, making it a challenging environment for the DMF market in Europe. Despite some occasional positive indicators, the prevailing uncertainties have made industry players cautious about their investments in this product. In summary, the European DMF market's declining trend was influenced by both weak demand from downstream industries and broader economic concerns. This made it a challenging quarter for the market, with weak PMI indices and recession fears acting as significant contributing factors to the declining prices.
For the Quarter Ending June 2023
North America: USA
In the US market, the market fundamentals of Dimethylformamide (DMF) remained at their lower end during the entire second quarter of 2023. At the beginning of Q2, sharp declining momentum was observed, but in the last month of Q2, decrement occurred at a slower rate. The market sentiments fluctuated based on various factors impacting demand and supply dynamics. In the US market, the price of Dimethylformamide in June declined by approximately (7%). However, despite this, a consistent inflow of material left buyers hesitant due to high inventories as trading activities for this commodity remained subdued. Additionally, the prevailing economic uncertainty and fears of high inflation and rising interest rate continued to shape market sentiments, contributing to the cautious atmosphere within the industry. Moreover, healthy availability of the material had narrowed the gap between demand and supply, consequently opening doors for the purchasers to offer lower bidding prices. In addition, decrement in procurement activities also remained the major region for declined commodity prices.
APAC
The market of Dimethylformamide (DMF) market continuously followed a declining price trajectory during the second quarter of 2023. A generally skeptical market has been created by falling trading activities in the Chinese market. The extended weakness in the buyer appetite in the domestic market, with sluggish end-user consumption in key industries such as the textile and coating sector, prompted market participants to keep the prices on the weaker side to keep the prices economical. Adequate supplies of product in the domestic ports kept the market oversupplied due to the plentiful availability of the product in the region, despite the fact that low demand amid the Slump in purchasing activities of Dimethylformamide was observed as the demand recovery fell short of expectations. Overall consumption showed a deep contraction and failed to regain momentum amid Weak demand from downstream Textile industries. The price of Dimethylformamide FOB-Nanjing settled at USD 901/MT in the month of June and showcased a decrement of approximately (15%) in Q2 of 2023. Meanwhile, the market fundamentals remain bearish.
Europe
In the European market, Dimethylformamide (DMF) has experienced a noticeable declining trend in the second quarter of 2023. Several factors contributed to the overall market slump. A combination of reduced demand, supply challenges, and economic factors has impacted the Dimethylformamide market across Europe. One of the primary contributors to the declining trend was Supply-side challenges, which played a significant role in the declining trend for the European Dimethylformamide market. Textiles and coating industries across the region have faced operational hurdles during the entire Q2 of 2023. However, in the month of June, the cost of Dimethylformamide decreased as companies had already procured a substantial amount of the product in the previous month. With it, its Transactions remained challenging as purchasing activities remained at its lower hand with feeble bidding competitive offers contributing to margin compression. Moreover, Economic factors have further impacted the European Dimethylformamide market. The economic slowdown and changing geopolitical landscape have created an environment of cautious spending. Businesses and consumers remained hesitant to commit to long-term orders, leading a decreasing demand. Thus, the price of Dimethylformamide showcased an overall decrement of approximately (15%) in the second quarter of 2023
For the Quarter Ending March 2023
North America
Dimethylformamide prices showed a downward trend throughout the first quarter of 2023, owing to the decline in the demand from primary consuming downstream industries such as synthetic fibre and plastic. Due to poor demand fundamentals in the domestic market, prices for Dimethylformamide turned southward. However, the downtrend was supported by the declining feedstock Methanol prices amidst falling regional uptake from end-use industries, which had a negative impact on Dimethylformamide demand from these sectors. Under such circumstances, local Dimethylformamide makers were afraid to produce products, as inventories were sufficient to fulfill the consumer's appetite. As a result, the price of Dimethylformamide declined throughout Q1.
APAC
Dimethylformamide (DMF) price in the 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 a declining upstream Methanol market. Furthermore, exports were also curtailed, considering the weakening orders and the abundant product supply in the downstream synthetic fibre and plastic sectors. Since inventories were seen to be steady in the domestic market, manufacturers were forced to lower their operating costs. DMF industry continued to run smoothly along with the improved operating rate of DMF industries in Jinan Mingwei Chemical Co., Ltd. and Shandong Xiawei International Trade Co., Ltd. As of March 2023, the DMF market price dropped and settled at USD 1060/MT FOB Nanjing.
Europe
The fundamentals of weak demand and oversupply were exerting pressure on the European Dimethylformamide (DMF) market. Lowering purchasing activity, with end-use consumption weak from synthetic fibre and plastic industries, resulted in production curtailment as producers attempted to mitigate the effects of the limited buyer appetite. Therefore, the local Dimethylformamide makers were also afraid to produce products, as inventories were sufficient to fulfill the consumer's appetite. In addition, the overall weakness in other chemical industries as solvents also affected customers' attitudes toward the Dimethylformamide market. As a result, the outlook for Dimethylformamide during the first quarter of 2023 appeared to be gloomy.
For the Quarter Ending December 2022
North America
The price of Dimethylformamide decreased in North America throughout the fourth quarter of 2022. The region's expanding stocks and shifting customer attitudes were the main causes of the downward pricing trend. The price of DMF decreased because of unfavorable market fundamentals and declining feedstock prices for natural gas and Methanol. The region's stocks grew as a result of the fact that the demand for downstream synthetic fibers, plastics, and other chemicals was less than what was anticipated. Port closures and shortened port operating hours in the USA caused delays in the import and export of cargo. As a result, DMF costs decreased in the final quarter of 2022.
APAC
The cost of Dimethylformamide dropped on the Chinese market throughout the fourth quarter, with prices in November circling about USD 1369/MT FOB-Nanjing (China). The ability of the domestic market to supply goods was adequate, and the downstream chemical, plastics, and synthetic fiber sectors lowered their offtakes. With falling natural gas prices, Methanol, one of the raw materials of DMF, also declined. Meanwhile, Chinese manufacturers of Dimethylformamide were wary as they observed the rise of COVID cases in China. Later, due to the confusion that surrounded buyers and sellers, as they lacked knowledge of the effects of the covid-resurge, some dealers reported that DMF makers had marginally cut DMF pricing. Consequently, the ChemAnalyst group had also seen a fall in DMF pricing during the fourth quarter of 2022.
Europe
Since the start of the fourth quarter, the price trend of DMF has decreased. The dropping feedstock Methanol prices have an impact on the region's production. Additionally, the domestic region's sales-to-inventory ratio was out of balance as a result of the drop in demand from the downstream synthetic fiber, plastics, and chemical industries. Taking into account the aforementioned elements, it is clear that lowering production costs and decreased demand from downstream sectors resulted in the buildup of significant bulk inventories in the area. In addition, market participants claimed that producers were getting ready to run their output at lower rates when demand decreased, and manufacturers had sufficient inventories.
For the Quarter Ending September 2022
North America
Dimethylformamide prices declined during the third quarter of 2022, backed by the consistent supply and lowering demand. The outlook for fresh material was dull during the quarter, as consumers were not in a healthy state to make bulk procurement. Meanwhile, dimethylamine's upstream market has been slowly decreasing since the start of July. Manufacturers suggested the reason behind the declining feedstock prices, as they suggested ample availability of material amidst low offtakes from the end-use plastic, synthetic leather, film, and surface coating industries. Therefore, considering these factors, ChemAnalyst reported a price decline. Later, the impact of storm Hurricane Ian impacted the supply of the product.
APAC
The price reduction in the Dimethylformamide market was due to several factors, including the decline in Methanol prices during July. The downstream acrylic filament, plastic, synthetic leather, film, and surface coating processing industries operate cautiously in accordance with the requirements of consumers to quell demand. Meanwhile, Dimethylamine and carbon monoxide commodities declined during the quarter's first half of the quarter third. Meantime, the price of goods in the northern region of Shandong dropped simultaneously. The raw material inventory of the local downstream factories was high. Therefore, according to ChemAnalyst data, the price of Dimethylformamide in China declined and hovered around USD 1564/MT FOB Nanjing during September.
Europe
The price of Dimethylformamide slipped during the third quarter of 2022 in the European region. The Inventory remained stable, but weak demand kept the prices on the lower end. Meanwhile, the weak downstream market, including acrylic filaments, plastic, synthetic leathers, films, and surface coatings, resulted in stockpiling inventories in the regional market. In contrast, the reduced operating rate disrupted supply, and the energy crisis did not much affect the market for DMF as stocks were sufficient. Manufacturers reported that the demand from downstream synthetic fibers, plastics, and other chemical sectors was optimum. However, the market situation was still bearish as the global crisis weakened market sentiments.
For the Quarter Ending June 2022
North America
Dimethylformamide (DMF) market trend was inclining in the second quarter. The tightness of raw materials supported this market trend in the US market alongside high demand from downstream acrylic fiber and plastic industries, which boosted the prices of DMF. Towards the second half of the quarter, the feedstock Methanol and Crude Oil costs surged to a new height with supply shortage, causing an increment in production rates. In comparison, the prices of DMF in this quarter surged compared with Q1 2022. Meanwhile, its demand from myriad end-use industries, including pharmaceuticals, chemicals, agrochemicals, and electronics, boosted its prices to follow the upward movement.
APAC
In APAC, Dimethylformamide (DMF) prices fluctuated throughout the second quarter, owing to the volatile feedstock market. Feedstock Dimethylamine and Methanol showcased firmness in their value, as crude oil supply was tight. Meanwhile, demand for acrylic fibers, plastics, synthetic leather, and pesticides was poor. The DMF factory's overall inventory level was high, the supply side was disrupted, and there were weaker raw material methanol prices. The overall supply of goods declined in the market, resulting in a downfall in market prices. The epidemic's impact and significant cancellation of foreign trade orders also contributed to the weak DMF market. In contrast, the Indian domestic market weakened throughout the second quarter; raw material dimethylamine and carbon monoxide were stable in the Indian domestic market, along with decreased demand from the downstream acrylic fiber. The low demand amidst the sufficient raw material availability pushed the manufacturer to keep the market lower this quarter.
Europe
Due to the Russia-Ukraine war and sanctions imposed on Russian oil by the European Union, the value of its feedstock rose throughout the quarter, supporting the price increment of Dimethylformamide. Demand for the product was strong enough to keep prices edging. The downstream derivative market of Acrylic Fiber and plastics remained strong, supported by limited supply, affecting production units with high utility costs in the region. Dimethylformamide is used in various pharmaceuticals, chemicals, and electronics sectors. DMF finds its primary application as a solvent for crystallization and reactions in the pharmaceutical industry. Meanwhile, the surging global energy cost and limited product supply affected the price trend of Dimethylformamide (DMF) in the domestic market.
For the Quarter Ending March 2022
North America
In North America, the Dimethylformamide market rose marginally throughout the first quarter on the back of high demand from downstream industries. Raw materials Dimethylamine and Carbon Monoxide were also observed rising in the regional market along with the volatile crude oil prices. From the demand side, DMF rose in the chemical industry as it is used as a solvent. In addition, expanding textile and increasing medical technology has boosted the demand for Dimethylformamide in North America. Later, supply disruption and the hike in transportation costs added fuel to the rising price trend of DMF. Therefore, DMF market rose and hovered at USD 3021/MT on an Ex-Location basis during the first quarter ending March 2022.
Asia Pacific
Dimethylformamide prices in India remained volatile throughout the first quarter, aided by strong domestic demand and insufficient supplies in the domestic market. DMF prices remained high during the first quarter at USD 2946/MT Ex-Depot Mumbai. The price of dimethylformamide (DMF) in the Chinese market witnessed prominent fall as compared to the Indian price, which remained stable in March. The raw material Dimethylamine also saw a downward trend due to declining upstream Methanol, due to the volatile natural gas prices. Thus, as of last month of the first quarter, DMF market price fell and settled at USD 2521 per tonne in March.
Europe
In Europe, Dimethyl Formamide market witnessed upward trend, supported by the constant demand from downstream industries. In contrast, manufacturers were also seen operating at optimum rates seeing the current war-like situation in the neighbouring countries. Thus, high demand amid the unavailability of products made manufacturers to increase their rates as the inventories were insufficient to fulfill the domestic requirement. In addition, the Europe market also observed high freight charges and congestion in ports due to the delay in shipping, causing hindrance in the delivery of goods. Therefore, disrupted by the war-like situation in the regional market, the DMF market rose in Europe and hovered at USD 3120/MT on an Ex-Location basis in March.
For the Quarter Ending December 2021
North America
DMF prices remained buoyant across US market, as the demand from the domestic market remained stable to firm while supplies constraints kept the market firm throughout the quarter. Furthermore, rising raw material Dimethylamine also remained a prime factor behind consistent buoyancy in downstream derivatives including DMF. In addition, upstream ammonia and methanol kept its uptrend continue till the end of this quarter. Climate calamity occurred during Q1 in US gulf coast pushed up the prices of several commodities, which has not come down yet to reach a pre calamity value. DMF prices assessed around USD 2950/MT during December in USA.
Asia
Production halt across Chinese market induced concerns all across APAC region, as several commodities’ cost surged drastically. There were several factors responsible for this hike in Chinese market like maintenance turnarounds on several plants, rising input cost coupled with rising energy related issues. Furthermore, demand from the downstream sectors across Chinese as well as Indian market also favoured this cost hike in the meantime. While in India Dimethylformamide remained buoyant throughout the quarter, supported by firm offtakes from the domestic market amid inadequate supplies. Balaji Amines, major manufacturer of DMF in India has gone through an unplanned plant turnaround due to minor technical fault in its unit III, which has induced a short-term panic across domestic market. However, Balaji Amines has resumed its plant during late November, that brought some relief to traders and downstream consumers in Indian market. DMF price assessed around USD 2604/MT during December in China.
Europe
European market remained turmoil throughout the quarter on the back of frequent change in upstream cost. Exorbitant rise in natural gas prices remained centre of all uncertainties induced across European market. Due to steep rise in upstream values, Dimethylformamide price remained high despite modest to stable offtakes from the domestic market. Furthermore, soaring freight cost didn’t let the prices of imported commodities to show any sign of ease in the regional market. Meanwhile, soaring upstream value also remained a major factor behind consistent surge in price of DMF in the region.
For the Quarter Ending September 2021
North America
In North America, the Dimethyl Formamide (DMF) market witnessed an upward trend backed by the firm demand from the downstream sectors and limited supply in the third quarter of 2021. Further, the spike in the feedstock prices also contributed to the inflation in the values of DMF during this timeframe. Moreover, in the US Gulf Coast, many manufacturers were compelled to shut down their industrial operations for almost two weeks as a repercussion of Ida hurricane that made landfall in Louisiana in August end. The situation resulted into the curtailment in the plant production rates and caused a disruption in the supply chains which led to the hike in the values of Dimethyl Formamide not only in domestic but also in the international markets.
Asia Pacific
In Q3 2021, the Asian Dimethyl Formamide market encountered a firm demand outlook because of the stable offtakes from the downstream sectors. Limited supply and spike in feedstock prices in the global market pushed up the prices of Dimethyl Formamide in Asia as well. In India, prices of Dimethyl Formamide witnessed an upward trend backed by the constant rise in the freight charges and lower imports from China due to the congestion on the several ports. Hence, the Indian Dimethyl Formamide market remained tight throughout this quarter, as domestic manufacturers raised the values of Dimethyl Formamide to improve their profit margins. Dimethyl Formamide Bulk Ex-Depot Mumbai monthly average prices stood at USD 2559.19 per MT in September showcasing a rise by USD 152 per MT since July.
Europe
In Europe, DMF market witnessed an uptrend during the third quarter of 2021 backed by the constraint availability of the product and improvement in the demand from the downstream manufacturers. Congestion on several ports of China led to the scarcity of the feedstock in the region that consequently fumed the prices of Dimethyl Formamide. Additionally, constant rise in the freight charges and shortage of shipping containers further aided the price trend of DMF in this quarter.
For the Quarter Ending June 2021
North America
Supply in the North American region improved as the industrial infrastructure in the US Gulf Coast recovered from the devastating impact of the polar winter storm. However, the pricing trend of the Dimethyl Formamide marginally improved buoyed by the additional cost support from key feedstocks. Demand remained continuous from the printing inks and dye industries as the mass vaccination programme amplified the public movement in the regional domestic market leading to an overall improvement in economic activities.
Asia Pacific
Southeast Asian Dimethyl Formamide market remained under pressure as major economies in the region were severely impacted with the second wave of the COVID. In the spot market the wait and see approach strengthened due to reluctant approach among buyers amidst the hovering uncertainties in the Indian domestic market. Due to existing market uncertainties, upstream producers reduced the operating rates to 70% in May. However, demand outlook stabilized in the second half as the market picked up pace due to ease in containment restrictions in several parts in India. The pricing trend continuously observed a downward stride since February with discussions at Ex-Depot Mumbai settling at USD 2380 per tonne in June.
Europe
Ease in the imports of Dimethyl Formamide from the US improved the operating rates in several manufacturing facilities which further improved the supplies in the European region in the quarter. However, some constraints were witnessed in the second half as buyers restrained to procure the feedstock due to high prices. Demand surged from the paint, inks and dye industries as the mass vaccination programmes amplified the public movement in the regional domestic market.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, tight availability of the upstream Methanol took a toll over the DMF manufacturing, thereby creating supply shortage of DMF in the North American market. The supply disruptions were largely caused by the winter polar storm in the Texas and nearby Gulf region. About 90% of the Methanol production remained halted, thereby minimizing the throughput in DMF production, as the regional industrial infrastructure collapsed amid the raging storm. Demand surged from the downstream pharmaceutical sector with spot buyers becoming more flexible towards the Asian supplies as the domestic prices of DMF skyrocketed in the region.
Asia-Pacific (APAC)
The supplies were tight in the Asia pacific market in the first quarter of 2021. Owing to the plant low inventories level at the manufacturing facilities in second half caused by the plant turnaround amid the Chinese lunar New Year holidays, with the regional supplies further reduced by lack of imports from USA. Amidst short supply and strong global demand, price of dimethylformamide (DMF) reported record-breaking highs in March. Supply remained tight as Chinese inventories dropped to unprecedented levels amidst strong pharma demand which carried strong market prospects. A supplier from China reported delayed shipments to the Indian and other export markets due to container shortages. FOB Shanghai price in March was around USD 1765 per tonne, showing m-o-m increment of 6.5%.
Europe
In Europe, DMF supplies were tight during the first quarter, owing to persistent shortages reported in the upstream Methanol supplies. The imports from the USA were hampered due to several plant outages amid the polar storm, whereas a significant impact was witnessed as the Asian supplies were delayed due to the blockage of Suez Canal during quarter ending. The northwestern regional plants were operated at reduced efficiencies due to the shortage of raw material and disrupted transportation route amid the severe winter season. Demand surged as the offtakes were strong from the downstream pharma sector.
For the Quarter Ending December 2020
North America
Supply of Dimethyl Formamide were constrained in the Q4, due to the outbreak of several Hurricane in the US gulf region, which caused temporary disruptions in the US’ power supply. Eastman Chemicals, one of the largest producers of DMF reported a decline in Dimethyl Formamide production due to disruptions in the power supply caused during the Hurricane season. Many other manufacturing facilities were heard announcing temporary turnarounds at their production units, exacerbating the supply constraints. Some units were not able to resume production until the end of February thus creating a significant demand-supply gap, which consequently affected the prices of DMF and its downstream derivatives in the regional market.
Asia
In Q4 2020, the demand for Dimethylformamide (DMF) surged due to revival in consumption of DMF from agrochemical sector. Several Asian countries including India began to import DMF to fulfill the growing demand from downstream pharmaceutical and agrochemical sectors after the ease in restriction by the government. Jiangshan in China imposed a temporary turnaround in its DMF production unit during the first of Q4 to assimilate its existing inventory. The demand-supply equilibrium of the region dwindled in countries like China and South Korea, as the manufacturers’ inventories depleted in the second half of Q4, resulting in the substantial hike in prices of DMF. Consequently, DMF prices averaged around USD 1570 per MT in Southeast Asia during Q4 2020.
Europe
In the fourth quarter of 2020, Dimethylformamide prices maintained a constant uptrend, due to tight supply with improvement in its domestic as well as export offtakes. Followed by the surge in upstream prices, DMF prices witnessed multifold increment on contract prices. However, several unplanned and planned maintenance shutdowns, kept the DMF supply snug throughout the quarter in the European region. In Q4, regional manufacturers experienced rich market fundamentals despite looming uncertainties, caused by the second lockdown imposed at several part in the region under the fears of new strains of Coronavirus.
