DMF Market Negotiation Focus Shifts Higher

March 30th News

I. Price Trends

According to the commodity market analysis system, as of March 30, the average price of top-grade DMF from Chinese companies is 5,500 CNY/ton. The recent DMF market prices have shown a slight increase, and currently, the DMF market is operating with a narrow but strong trend.

II. Cause Analysis

Market Perspective: On the upstream methanol market, prices are currently trending strongly but with limited room for further increases, providing only modest support to DMF costs. The supply of dimethylamine is concentrated—primarily produced by major companies such as Hualu Hengsheng and Luxi Chemical. The industry exhibits high concentration, resulting in relatively stable prices, and the DMF market supply remains steady.

Demand Side: Currently, downstream demand in the DMF market is moderate. Although its share has declined, it still remains the dominant segment—having long held a commanding 59% share of DMF consumption in 2021, which has now dropped to around 42% by 2025. Intermediates for pharmaceuticals and agrochemicals: Demand in this segment is rigid and steadily growing. As an essential solvent in organic reactions, DMF is irreplaceable in the synthesis of antibiotics, anti-tumor drugs, and pesticides. By 2025, the consumption share from this segment is expected to rise to 28%. Moreover, demand for high-purity (pharmaceutical-grade) products continues to increase, accelerating the pace of domestic substitution. Electronic chemicals: This segment has become the largest growth engine, with an average annual growth rate as high as 18.5%.

III. Future Market Forecast

DMF analysts believe: The DMF market is mainly operating strongly, with limited room for increases, and the overall market supply and demand are in balance.