June 12 news
I. Price Trends
According to the commodity market analysis system: As of June 12, the average price of top-grade DMF in China was 4,760 CNY per ton. This week, the operating rate of the DMF industry in China was 65%-70%, slightly lower than last week. Some small and medium-sized enterprises reduced their load or conducted short-term maintenance due to negative profit margins. The DMF market mainly remained stable this week.
II. Cause Analysis
Market Supply: Currently, DMF as a whole is at a high inventory level, with operating rates maintained at 65%-70%. Smaller and medium-sized capacities may continue to reduce loads, making it difficult to change the loose supply situation. The overall market supply is relatively loose, lacking the impetus for price increases, with slow inventory consumption. The mainstream price is fluctuating in the range of 4600-4900 CNY/ton, with high-end products being more resistant to price drops but still lacking the momentum for significant increases.
Market: Downstream demand is limited to small orders, with low willingness for bulk purchases. Upstream inventory pressure is high, and the focus is mainly on selling at low prices. Negotiations are weak, and prices are stable but tending to weaken. Transactions are light, and competition is intensifying. This week, DMF prices have been fluctuating narrowly and trending downward, with light spot transactions and intense bargaining between upstream and downstream players.
Demand Side: The traditional sector continues to experience a slow season, making it difficult for PU resin demand to improve. Demand in the pharmaceutical and electronics sectors remains stable with no significant increase. In the third quarter, as footwear and apparel enter their peak season and companies replenish inventories, PU resin demand shows marginal improvement. Meanwhile, demand in the pharmaceutical and electronics sectors continues to grow steadily, and demand in the lithium-battery sector is on the rise.
3. Future Market Forecast
DMF analysts believe: In the short term, the DMF market in China is expected to mainly experience low-level fluctuations, with ample supply and limited downstream demand, leading to a narrow and weak operation.
