Weak Demand Looms Large Over Dimethylformamide Market

Zhejiang, China: Recently, Dimethylformamide price have been on downturn on account of lower demand from downstream sectors. Demand for acrylic fibres, plastics, synthetic leather, and different pesticides remains poor. Overall inventory level has mostly been high, coupling with disrupted supply. It is also difficult to see a significant increase in domestic demand because manufacturers have just began operating their units as a result of easing lockdown restrictions. Downstream factories have resumed construction one by one, but the overall level of plant construction is low due to the slow resumption of work.

Dimethylformamide, production involves Dimethylamine and Carbon-Monoxide at low temperature and pressure. According to ChemAnalyst database, ammonia, the feedstock for dimethylamine prices continued upsurge owing to the increasing coal prices whereas, Carbon Monoxide another feedstock continued volatility in its trend amid soaring natural gas prices in the verge of high temperature causing cuts in production units.

Furthermore, the sluggish market of Dimethylformamide reflect the extent to which the Chinese economy has lost momentum in account of extended lockdowns in some of its major economic hubs including Shanghai, the world’s largest port, has been in massive disruption since March.

According to the market sources, various manufacturers were seen revising their Dimethylformamide nominations for June, on back of low offtakes from downstream industries and sufficient availability of material with the manufacturers. Jiangsu, Zhejiang, Luxi Chemicals, Shandong Jinmei Riyue and Shaanxi Xinghua reduced their quotation on 6th June 2022.

ChemAnalyst prediction stated that “Dimethylformamide, demand for is expected to increase from solvent and chemical industry in developing countries like India and China. The expanding textile industry, supported by increasing medical technology is going to boom the market for Dimethylformamide from chemical industry. Therefore, the price of Dimethylformamide is anticipated to increase in coming months with higher orders from acrylic fibres and plastic industry.