For the Quarter Ending September 2024
North America
In Q3 2024, the Dimethylformamide (DMF) market in North America experienced several key trends. Prices saw a slight increase due to higher freight costs and favourable conditions in the feedstock market. The cost-effective production helped maintain stable prices despite international market tensions. The demand for DMF remained strong, driven by its use as a solvent in the chemical processing, pharmaceutical, and textile industries.
The growing demand for synthetic leather in the footwear and automotive industries also contributed to the market's growth. The supply chain faced challenges, including higher freight costs and logistical issues. However, the production remained steady, supported by cost-effective feedstock availability.
There was an increased focus on health and safety regulations due to DMF's potential health risks, such as skin irritation and liver damage. Companies are investing in safer handling practices and exploring less harmful substitutes. The market is expected to continue growing, supported by the demand from various end-use industries. However, stringent regulations and health concerns may pose challenges to the market's expansion.
APAC
Dimethylformamide pricing in the APAC Region during Q3 2024 has witnessed a significant decrease, reflecting a challenging market environment. Various factors have influenced this downturn, including weakened demand from downstream sectors like agriculture and pharmaceuticals, leading to an oversupply situation. Additionally, the ongoing global economic uncertainties have contributed to the downward pressure on prices. In China specifically, the market has experienced the most pronounced price changes, with a notable -27% decrease compared to the same quarter last year. The quarter-on-quarter decline of -10% further highlights the negative trend in pricing. The second half of the quarter saw a continued drop in prices, with a -4% decrease compared to the first half. The latest quarter-ending price of USD 540/MT of Dimethylformamide FOB-Nanjing in China underscores the persisting downward sentiment in the market. Overall, the pricing environment for Dimethylformamide in the APAC Region has been consistently negative, with prices reflecting a challenging and unstable market landscape.
Europe
In Q3 2024, the Dimethylformamide (DMF) market in Europe experienced several key trends. Prices saw a slight increase due to higher freight costs and favorable conditions in the feedstock market. The costeffective production helped maintain stable prices despite international market tension. The demand for DMF remained strong, driven by its use as a solvent in the chemical processing, pharmaceutical, and textile industries. The growing demand for synthetic leather in the footwear and automotive industries also contributed to the market's growth.The supply chain faced challenges, including higher freight costs and logistical issues. However, the production remained steady, supported by costeffective feedstock availability.There was an increased focus on health and safety regulations due to DMF's potential health risks, such as skin irritation and liver damage. Companies are investing in safer handling practices and exploring less harmful substitutes.The market is expected to continue growing, supported by the demand from various enduse industries. However, stringent regulations and health concerns may pose challenges to the market's expansion.
For the Quarter Ending June 2024
North America
In the US market, the market for Dimethylformamide (DMF) is facing challenges due to sufficient inventory levels and low demand from market participants. Despite a positive outlook in the pharmaceutical sector, which has been experiencing growth, the agrochemical sector has seen a decline, impacting overall demand for DMF.
The textile industry remains positive, but it has not been enough to offset the broader market challenges. Additionally, the feedstock for DMF, Dimethylamine, declined by 1.7% in Q2, contributing to the complex market dynamics. Current pricing for DMF reflects these factors, with market participants being cautious due to the ample availability of inventories and subdued demand across several key sectors.
This situation has created a challenging environment for DMF suppliers and producers as they navigate fluctuating demands and feedstock price variations. The pharmaceutical sector's uptrend provides some relief, but the downturn in agrochemicals and a stable textile sector collectively shape a cautious and restrained market outlook for DMF in the US market.
APAC
The second quarter of 2024 for Dimethylformamide (DMF) in the APAC region has been characterized by a consistent decline in prices, driven by multiple significant factors. The primary influences on market prices have been subdued demand from key downstream industries such as textiles and pharmaceuticals, coupled with ample supply from major producing countries. The oversupply scenario was exacerbated by high inventory levels and a cautious purchasing approach from buyers, which collectively pressured prices downward. Focusing exclusively on China, the region that experienced the most substantial price changes, the overall trend has been a marked decrease in DMF prices. Specifically, there was a -37.6% change in prices compared to the same quarter last year, indicating a steep decline primarily due to an oversaturated market and tepid demand. From the previous quarter in 2024, prices further dipped by -2%, confirming the ongoing bearish sentiment. Seasonality factors also played a role, with typically lower demand during this period contributing to the downtrend. The correlation in price changes between the first and second half of the quarter was also negative, recording a -2.4% decrease which underscores the sustained downward trajectory. As a result, the latest quarter-ending price for Dimethylformamide FOB-Nanjing in China settled at USD 901/MT.
Europe
In the European market, the outlook for Dimethylformamide (DMF) is particularly challenging due to abundant inventory levels and significantly reduced demand from key market participants. The pharmaceutical sector, a traditionally strong driver of DMF demand, is currently experiencing a downturn, which is compounded by declines in both the agrochemical and textile sectors. The manufacturing sector's underperformance further adds to the subdued demand environment. This has created a scenario where DMF prices are under considerable pressure, reflecting the low consumption rates and oversupply in the market. The decline in the price of Dimethylamine, a crucial feedstock for DMF production, by 5.7% in Q2, has not been sufficient to counterbalance the demand slump. This price reduction in feedstock highlights a decrease in raw material costs, yet the overall DMF market remains sluggish. Suppliers and producers are navigating a tough market landscape characterized by a downturn across multiple sectors and significant inventory overhangs. The current dynamics suggest that unless there is a recovery in the downstream industries or a substantial reduction in inventories, DMF prices are likely to remain depressed, presenting ongoing challenges for stakeholders in the European market.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the North American market for Dimethylformamide (DMF) witnessed a notable increase in prices, primarily driven by several key factors affecting the broader chemical industry. One significant factor was the sharp rise in methanol prices, which is crucial to produce Dimethylformamide, a precursor in DMF manufacturing. However, the downstream market the Pharma, Paints, Dyes, and the Pigments sectors witnessed an outperformance while the Agrochemical pesticide sectors underperformance throughout the quarter.
As suppliers faced rising input costs, they adjusted their pricing strategies, accordingly, setting higher price targets for DMF to offset the increased production costs. This adjustment was further compounded by an increase in demand across various sectors, which naturally led to an upward pressure on prices.
In the United States, the price of Dimethylformamide, and by extension DMF, has seen the most significant changes compared to other countries in the region. This reflects the specific market dynamics in the U.S., where industrial demand patterns and the impact of raw material costs are particularly pronounced. Overall, the first quarter of 2024 marked a period of escalating prices for DMF in North America, influenced by the dual pressures of rising raw material costs and strengthening demand. These factors combined to create a more costly market environment for DMF, impacting suppliers and consumers alike.
APAC
In Q1 2024, the Dimethylformamide market in the APAC region experienced a significant decrease in prices. Various factors contributed to this downward trend, including weak demand from downstream industries, such as textiles and pharmaceuticals, and oversupply of the product. The market was also influenced by fluctuations in the prices of feedstock, such as Dimethylamine and Methanol, as well as changes in energy costs and operating expenses.
These factors combined to create a bearish market sentiment. China saw the maximum price changes in the Dimethylformamide market. The market participants have continuously engaged in the destocking of the inventories resulting into lower biddings for the fresh accumulations. The price change from the previous quarter in 2024 was recorded at -10.90%, indicating a continued decline in prices.
As the quarter came to an end, the latest price of Dimethylformamide in China was USD 613/MT FOB-Nanjing. This price reflects the prevailing negative sentiment in the market, with prices continuing to decrease. Overall, the pricing environment for Dimethylformamide in the APAC region during Q1 2024 was negative, with prices experiencing a significant decline. The market was characterized by weak demand, oversupply, and fluctuations in feedstock and operating costs.
Europe
During Q1 2024, the European Dimethylformamide (DMF) market experienced a notable downturn in prices, impacted by a convergence of challenging factors. Primary among these was a subdued demand from the downstream fertilizer sector, influenced significantly by adverse weather conditions and the end of the winter planting season. Additionally, escalating energy prices have spurred ongoing farmer protests across the region, which further curtailed purchasing enthusiasm and reduced demand for DMF, ultimately exerting downward pressure on its prices. The market's bearish trend was underscored by an abundance of supply paired with diminished demand. The peak planting season had concluded, and the continued unfavourable weather further weakened the market demand for DMF. This imbalance between supply and demand led to surplus availability, narrowing the gap between them, and contributing to a significant reduction in prices. In summary, the European DMF market during the first quarter of 2024 was characterized by a negative pricing environment. Prices followed a downward trajectory, influenced by weak demand, challenging weather conditions, and an oversupply in the market. This period highlights the sensitivity of chemical markets to external economic and environmental factors, reflecting a broader trend of market volatility in the face of fluctuating demand and supply dynamics.
For the Quarter Ending December 2023
North America
The market for Dimethylformamide saw a rise in comparison to the previous quarter, which was mostly caused by higher freight costs in the fourth quarter. The favorable conditions in the feedstock market, coupled with cost-effective production, were influenced by the tensions between the international markets.
The increase in the freight charges at the respective routes, and the tension between the Middle East and the Panama Canal low-level issue also contributed to a surge in price in the US market. Moreover, the high production costs were attributed to the inclination in the Dimethylformamide market during October. Additionally, an increase in utility costs during November across various manufacturing industries has fueled the price surge for this month. The Industrial Purchasing Managers' Index (PMI) has seen a noticeable decrease compared to October.
However, due to high market participant stocks and weak local and regional demand, dimethylformamide prices in the US market declined in December 2023. During this time, destocking attitudes among the players and a decline in downstream consumer sentiment affected the price of dimethylformamide in the US.
APAC
The APAC Dimethylformamide market witnessed a bearish trend in Q4 of 2023 due to the high supply of the product over low demand. The market remained stable during December due to the smooth operation of the supply chain without any disruptions. The demand for Dimethylformamide remained low to moderate due to reduced consumption from vital sectors like textile and adhesive. The value of the product was under pressure due to poor demand for Dimethylformamide from both domestic and foreign markets in the textile and coating sectors. Because of the current abundant stocks and weak market environment, buyers were cautious when making large commitments. Because of this cautious approach, the trade dynamics became more muted, which forced sellers to entice buyers with discounts in order to stimulate interaction. The percentage change in prices in last year's Q4 was -46%, while the percentage change from the current to the previous quarter was -18%. The price percentage comparison of the first and second half of the quarter was -7%. The current quarter-ending price of Dimethylformamide FOB-Nanjing in China was USD 688/MT.
Europe
The Dimethylformamide market in Europe witnessed a mixed market sentiment during the fourth quarter. However, comparatively, the market showcased a significant incline during Q4 relative to the third quarter. During October, the price of Dimethylformamide in Germany witnessed a surge in price due to an increase in the price of feedstock like Methylamine in the market. The macroeconomic outlook remains extremely uncertain in the current interest rate policy environment and in view of increasing geopolitical risks. Rising raw materials prices were weighing on the demand and margins of the major industries in Germany. Furthermore, the European Union's statistical body, Eurostat, has released flash data that indicates the October 2023 inflation rate for the Euro area was 2.9%, a decrease from September's 4.3% rate. According to the German Statistics Agency's latest recent data, the inflation rate was recorded as 3.8 positive in October 2023. However, Dimethylformamide has remained widely available in the German market during December, with suppliers maintaining substantial stockpiles. The price fall has been attributed in part to China's dumping effect. The oversupply scenario has caused the price of Dimethylformamide to decline, which was attributable to the adequate availability of inventories.
