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
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.
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.
