No.1 Market overview for the month

Slow downstream resumption of work in affected factories

Continued decline in DMF prices

 Domestic BDO Price Trend Chart 2018-2020

Domestic DMF markets continued to fall in March. As the domestic epidemic eased, downstream factories resumed construction one after another, but due to the slow resumption of work, the overall level of plant construction is not high.Coupled with the collapse of crude oil in the month, the market mentality caused a negative pressure, downstream customers into the market procurement pace further slowed, DMF the overall supply of goods in the market, resulting in a sustained decline in market prices. Factory, in early March, Henan Junhua 30,000 tons/year plant resumed normal start-up, other factory start-up load has been rising, DMF factory overall inventory level high, supply side storage pressure, coupled with raw material methanol prices continue to weaken, cost side lack of support, short-term domestic DMF market is expected to be difficult to stop falling.

No.2 Overall market analysis

1、DMF plant installation this month

By the end of the month, the overall operating rate of domestic DMF enterprises was about 69%. Early in the year, Yangzi BASF 40,000 tons per year, Henan Junhua 30,000 tons per year plant resumed normal start-up, other parts of the factory start-up load has been increased, DMF the overall level of start-up in the industry has increased. At the end of April, Yangzi BASF's 40,000-ton/year plant is scheduled to stop and overhaul, and the DMF operating rate is expected to be in the range of 65-70% by the end of April.

1、Raw material cost and change analysis

Methanol: March, China's methanol market center of gravity depth downward. The national average price this month is 1765 CNY/ton, a month-on-month ratio of -12.01%.

At present, the price of methanol market is relatively low, and the pressure of production cost of upstream enterprises is gradually highlighted, or it will form support to the bottom of methanol. But short-term supply-and-demand game may be difficult to ease, port inventory remains high and import expectations are still considerable, will also form a certain suppression of spot market prices. Focus on the mainland's main factory spring inspection situation landing process. Zhongyu information believes that in April, China's methanol market or the overall first weak shock, mid-and late storage moderate rebound space.

2、Main downstream start-up analysis

This month, the domestic slurry market is weak finishing, although the price of raw materials continued to fall, but the slurry industry has not yet adjusted the unified offer price, the actual deal more according to customer conditions for preferential treatment. Affected by the weak demand for terminals, the overall start-up load of slurry manufacturers is not high, the main plant start-up load gradually returned to the vicinity of 6-7% in the month, small plant start-up slightly lower..

4. market trend forecast for next month

No.3 Views and Summary

Overall, the impact of the epidemic on the global economy will continue for a long time, the global economic downward pressure increased. Faced with a large cancellation of foreign trade orders, domestic demand is also difficult to have a significant increase in the situation, the DMF market oversupply contradiction is obvious, if the price of raw materials did not rebound significantly, the DMF market is expected to have some downside space in April.