DMF: A brief analysis of the market situation in 2022

DMF: A brief analysis of the market situation in 2022

In 2022, my country's DMF market will usher in a period of capacity expansion. In the second half of the year, with Anhui Jinhe's 30,000 tons/year and Jiujiang Xinlianxin Phase I's 100,000 tons/year devices successfully put into operation, the DMF production capacity will reach 1.03 million tons. Since the beginning of this year, due to various influences, downstream demand has performed poorly. At the same time, the global economic downturn has also shrunk foreign demand, and exports have declined by a certain percentage. Although in the second half of the year, domestic demand gradually increased under the policy of "stabilizing the economy", the recovery of the demand side was not as good as the impact of the release of new production capacity on the market supply impact, the weak balance between supply and demand in the market was broken, competition in the industry intensified, and the market price of DMF continued to fall .

In terms of price, in 2022, the domestic DMF market will show a sharp downward trend. The lowest point appeared in late November, and the highest point appeared in late January.

In the first quarter, the price level of the DMF market was generally at a high level. Before the Spring Festival holiday, under the background of shrinking supply due to the impact of environmental protection policies and rising demand, prices showed an upward trend. The East China market saw the highest price rise and acceptance delivery. After the festival, the market tended to fluctuate. However, after entering March, the domestic epidemic situation has spread in many places, and the control measures in many places have been upgraded, which has suppressed logistics transportation and terminal consumption. The inventory level of some major domestic DMF manufacturers has increased, and the intention to reduce prices for shipments has increased. The DMF market has gradually entered the downward channel. Until mid-April, the cumulative price fell by more than 2,800 yuan/ton, and then the factory reduced the start-up load, the pressure on the supply side decreased, and the downstream stage entered the market to replenish the support, and the market started a wave of rebound. However, due to the impact of public health events in many places, transportation has not yet resumed, and the current demand has not yet fully recovered, there is still resistance to the downward transmission of costs. In May and June, the market generally showed a trend of shock operation. In the third quarter, the 30,000-ton/year plant of Anhui Jinhe and the 100,000-ton/year plant of Jiujiang Xinlianxin Phase I have been put into operation one after another. The DMF market has ushered in a wave of new production capacity, which has led to increased supply pressure and suppressed the market. The price of DMF gradually fell below the high level of 10,000 yuan. After entering the fourth quarter, the release of production capacity of DMF's domestic downstream industries continued to weaken, the imbalance between supply and demand in the market continued, the market was dominated by a bearish atmosphere, and the market continued to trend downward.

Overall, in 2022, due to the expansion of production capacity and the weakening of demand, the imbalance between supply and demand in the DMF market will increase.