Price trend

According to the analysis system of the commodity market of SunSirs, as of March 22, the average price of premium DMF quoted by domestic DMF enterprises was 4,700 RMB/ton, an increase of 1.35% compared to the same period last week, an increase of 100 RMB/ton, and an increase of 1.08% compared to the same period last month, an increase of 50 RMB/ton. As of March 22, the mainstream price range in the market was around 4,700-4,800 RMB/ton. This week, the Luxi Chemical Plant restarted, and DMF had increased in supply. As of March 22, downstream demand was still good, and the purchasing atmosphere was positive. Upstream methanol was relatively stronger, and the overall market trading atmosphere was better.

Analysis review

This week, the domestic DMF market showed a narrow upward trend, with DMF prices showing a continuous upward trend since March. In the second half of March, DMF prices saw a narrow downward trend before rebounding. The overall DMF market showed a volatile upward trend in March, with a stable market mentality. The industry mainly focused on the restart of Luxi Chemical. This week, Luxi Chemical officially restarted, with an increase in supply and market demand. Downstream restocking was mainly based on demand, with rigid demand procurement mainly consisting of small orders and low inventory levels, resulting in slow consumption of inventory.

In terms of cost: Since March, the overall shipment of upstream methanol had been good, while inventory had been operating at a low level. In the first half of March, methanol continued to rise, and the business attitude was positive. The main reason was due to the shutdown of external facilities in February, delayed restart, and other reasons. In March, there was a decrease in methanol spot prices, low port inventory, and good downstream demand. There was a shortage of methanol suppliers, which led to a rise in methanol prices. In mid March, the methanol plant entered the intermediate inspection stage, and the operating rate of methanol factories showed a downward trend. As of the end of March, domestic methanol production started at 76.05%, a decrease of 4.11 percentage points from March 9th. The supply of domestic methanol for wooden products had also been somewhat tightened.

Market outlook

SunSirs’ DMF analysts believe that the supply side of the DMF market had increased after the holiday, but downstream demand was limited, inventory pressure still existed, and consumption was slow. In the short term, DMF may show a stable and weaker trend, and companies are mostly adopting a wait-and-see attitude.

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