DMF Market Primarily Operates Strongly

March 25th, news:

I. Price Trends

According to the commodity market analysis system, as of March 25, the average price of top-grade DMF from Chinese companies is 5,480 CNY/ton. The market price of DMF has recently increased significantly, rising from 3,940 CNY/ton at the beginning of March to 5,480 CNY/ton, entering the annual high range. This increase is mainly driven by short-term improvements in supply and demand and market sentiment, but the long-term fundamentals of the industry, characterized by "overcapacity and weak demand," have not fundamentally changed.

II. Analysis of Causes

Market Perspective: Methanol prices have been trending weaker: Since the beginning of 2026, both supply and demand in the methanol market have weakened, causing prices to fluctuate downward with limited support for DMF costs. Dimethylamine supply is concentrated—primarily produced by large enterprises such as Hualu Hengsheng and Luxi Chemical—resulting in high industry concentration and relatively stable prices. The green transition trend: As the “dual-carbon” goals advance, new low-carbon processes that utilize CO₂ to produce DMF are gaining attention and could reshape the feedstock structure in the future.

Demand Side: Polyurethane synthetic leather (PU slurry): Although its share has declined, it remains the dominant segment. For a long time, it accounted for half of DMF consumption, reaching as high as 59% in 2021 but dropping to around 42% by 2025. Affected by the substitution effect of water-based and solvent-free technologies, as well as weak demand in end markets such as footwear, apparel, and luggage, the growth rate of DMF demand in this sector has slowed to below 2%, entering a stage of intense competition over existing market shares. Pharmaceutical and agrochemical intermediates: characterized by rigid demand and steady growth, DMF serves as an essential solvent in organic reactions and is irreplaceable in the synthesis of antibiotics, anti-tumor drugs, and pesticides. By 2025, the consumption share of this segment is expected to rise to 28%, with continuously increasing demand for high-purity (pharmaceutical-grade) products. The pace of domestic substitution is accelerating. Electronic chemicals: the largest growth driver, with an average annual growth rate as high as 18.5%.

III. Future Market Forecast

DMF analysts believe: The DMF market will maintain its current trend, with limited room for increase, and the overall market will operate in a balanced supply and demand situation in China.