April DMF Market Prices Show an Initial Rise Followed by a Decline

April 30 news

I. Price Trends

According to the commodity market analysis system, as of April 30, the average quoted price for high-grade DMF products in China was 5,760 CNY per ton. In April, the DMF market price showed a trend of first rising and then falling. At the beginning of the month, driven by partial plant maintenance and a temporary rebound in downstream demand, DMF prices began to rise slowly, with companies gradually increasing their quoted prices and the market trading atmosphere becoming somewhat more active.

2. Cause Analysis

Market Supply: The supply of DMF in the market has been gradually increasing, while demand growth remains sluggish, leaving insufficient momentum for price hikes and triggering a pullback. By the end of the month, DMF prices had noticeably declined from their mid-month highs. Overall, price fluctuations have been significant, with varying price performances across different regions. In the East China region—being the primary consumption and trading hub—price fluctuations have been particularly pronounced. In contrast, the North China region has experienced relatively stable prices, though it is still influenced by broader market trends.

Raw Material Costs: The primary raw materials for DMF are methanol and liquid ammonia. In April, methanol prices experienced significant fluctuations—prices rose slightly at the beginning of the month but then fell again. Liquid ammonia prices remained relatively stable; however, overall, these raw material costs continue to provide some support for DMF prices. Fluctuations in raw material costs pose certain challenges for DMF producers in terms of cost control.

Downstream Demand: Polyurethane is one of the primary downstream application areas for DMF. In April, demand in the polyurethane industry remained subdued, with slow growth in end-use sectors such as furniture and automotive, which failed to provide sufficient impetus for polyurethane demand. As a result, polyurethane manufacturers maintained relatively stable DMF procurement volumes without any significant increase. Leather Industry: The leather industry also showed weak demand for DMF. Affected by environmental regulations and market competition, some leather enterprises operated at low capacity utilization rates, leading to reduced demand for DMF. Meanwhile, leather products face certain export pressures, further dampening demand for DMF. Electronics Industry: Although the electronics industry’s demand for DMF is relatively small, it also did not show any notable growth in April. Given the rapid pace of product upgrades and replacements in the electronics sector, market demand fluctuates considerably, resulting in poor stability in DMF demand.

3. Future Market Forecast

DMF analysts believe that the situation of ample market supply will be difficult to change in the short term, and domestic demand is also unlikely to see significant improvement in the short term. If raw material prices continue to fall, DMF costs will further decrease, and prices may continue to decline. However, if domestic demand improves, the extent of the price drop may be somewhat limited.