Market overview for the year

Domestic DMF Price Trend Chart 2018-2020

In September, the domestic DMF market first declined and then rose. At the beginning of the month, with the resumption of pre-maintenance equipment, the tight supply situation eased and continued to increase. At the same time, the downstream expectations were strong, and the DMF market shipments were under pressure and the downward channel was opened.The Jiangsu market fell below the high of 7,000 to RMB 6,850/ton accepted and delivered, a cumulative drop of 3.47%. After the rapid decline, with the traditional peak season.

 In the near future, the start of the downstream slurry industry has increased compared with the previous period, and under the transmission of cost pressure, prices have been gradually increased. Inaddition, the National Day holiday is approaching, and downstream deposits haverigid demand for replenishment. At the same time, some export orders arecollected for delivery in Hong Kong, and overall buying momentum has increased.There is also positive support on the supply side. Anyang, Henan’s 9-day120,000-ton/year device will not be shipped after the shutdown on September 7 and the Shaanxi Xinghua device will reduce its load production and reduce the market supply. As a result, the market is in short supply, the market is rising rapidly, and the price hits a record high. Entering the end of the month, with the resumption of construction of the Anyang Jiutian plant, Hualu Hengsheng released new production capacity, and the downstream demand temporarily weakened after the pre-holiday stocking, the tight supply situation in the DMF market may gradually ease, and the market temporarily stopped rising and consolidating.

Overall market analysis

1、Factory installation DMF this month

2、Raw material cost and changeanalysis

Methanol:In the short term, the supply and demand pattern will remain slack. As winterapproaches, some MTO devices may be overhauled. In the fourth quarter, thereare still production devices planned to be put into operation. It is expectedthat the mainland market will struggle upward. In terms of ports, the "GoldenNine and Silver Ten" and winter gas restrictions are expected to continueto boost market confidence. The restoration of global demand will ease thepressure on coastal inventories. There is still room for upside. Some marketsare expected to follow the market.

3、Main downstream start-up analysis

This month, the focus of the domestic slurry market has risen. Driven by risingcosts, slurry manufacturers uniformly raised RMB 1,200/ton on September 7. In addition, end users have replenishment requirements before the festival, and slurry manufacturers have relatively stable operating loads.

4、Next month's Market Trend Forecast

Views and Summary

On the whole, the tight supply of DMF will be eased with the resumptionof the preliminary maintenance equipment and the release of new productioncapacity. In October, downstream demand is still recovering slowly, and thepressure on supply and demand may not be large. It is expected that the marketmay have a high and narrow correction.