Dimethylformamide Market Maintains Stability in Early August Amid Balanced Supply-Demand Ratio

In the global market the price of the Dimethylformamide (DMF) witnessed a stability as of 1^st week of August. This stability in the DMF price is majorly due to the balanced supply demand ratio between the market participants in the inventories management. With respect to the current demand from the downstream Pharma, Agrochemical and the other chemical sector market the suppliers have maintained their exquotation price due to which the price witnessed no major change in the respective period. These factors have majorly resulted into influencing the DMF demand in the global market.

In the Chinese market, the price of DMF remained stable at 545 USD/MT FOB-Nanjing this week. This stability in the DMF price, amidst a generally downward trend, is primarily due to the current destocking of inventories, which has helped balance supply and demand. According to Statistics China, exports of amides derivative salts reached 1,244.780 MT in June, marking a significant 74.3% increase from May. Despite this, the downstream pharmaceutical and agrochemical sectors experienced underperformance, contributing to lower overall demand. Adequate inventory levels further reduced the urgency for major bidding activity from market participants. Additionally, the official NBS Manufacturing PMI in China declined slightly to 49.4 in July 2024 from 49.5 in the previous month, indicating a slight contraction in manufacturing activity. This overall market scenario reflects a cautious approach by buyers and sellers amid economic uncertainties and fluctuating demand in key sectors.

In the German market, the price of DMF is experiencing a challenging scenario. These price fluctuations are primarily driven by underperformance in key downstream sectors such as pharmaceuticals and agrochemicals. According to Statistics Germany, imports of amides and their derivatives totalled 415 MT in May. Germany's industry is facing a rough start to the second half of the year, with manufacturing production continuing to decline in July and no signs of recovery. Concurrently, companies are ramping up staff cuts, indicating little hope for improvement. The major pharmaceutical index, DAX Pharmaceuticals & Healthcare (CXPPX), along with the textile sector, has also underperformed, contributing to lower demand for DMF from the pharmaceutical sector. This combination of sectoral downturns and broader economic challenges is exerting pressure on DMF prices in the German market.

As per the ChemAnalyst anticipation the price of the DMF is expected to showcase bearish trend in the upcoming sessions. This bearishness in the DMF price is majorly due to the expectations of the underperformance in the downstream market. Additionally the current downward trend is indicating the suppliers lower enthusiasm for the accumulation of the inventories due to which the price is currently witnessing the short buildup price fluctuations which is expected to continue in the near term. These factors will play a pivotal role in influencing the DMF price in the global market.