The DMF industry has high production capacity concentration and market supply and demand maintain a tight balance.

DMF is dimethylformamide (abbreviation for N,N-dimethylformamide). It has good chemical and thermal stability, high boiling point and flash point, and strong solubility. As an important organic chemical raw material, DMF is called the “universal organic solvent” or “all-purpose solvent” and has a wide range of applications, including polyurethane slurry, acrylic fiber, spandex, medicine, dyes, coatings, metal processing and other fields. involved.

From a demand perspective, DMF accounts for more than 50% of the demand in the polyurethane slurry industry. According to the“China DMF Industry Market Monitoring and Future Development Prospects Research Report 2022-2026” released by the Industrial Research Center, 2017- In 2021, driven by the stabilization of the development of the polyurethane slurry industry and the continuous expansion of the application scope of DMF, the demand for my country’s DMF industry will increase year by year, with the growth rate remaining between 0.8% and 7.4%. Among them, in 2021, the epidemic has been effectively controlled and the downstream market development situation is good. The DMF market demand will reach 589,600 tons, with a growth rate of 7.4%.

From a production perspective, in recent years, driven by the attraction of market prospects and the need for industry transformation and development, my country’s DMF industry production capacity has gradually concentrated, and the capacity utilization rate has continued to increase. The overall output of the DMF industry has increased, reaching 725,400 tons in 2021. The major domestic DMF manufacturers include Shandong Hualu Hengsheng Chemical Co., Ltd., Luxi Chemical Group Co., Ltd., Shaanxi Xinghua Chemical Co., Ltd., Anyang Jiutian Fine Chemical Co., Ltd., and Shandong Jinkong Riyue New Materials Co., Ltd. etc., the industry’s production capacity concentration is relatively high. Especially in 2020, after Jiangshan Chemical’s 180,000-ton DMF production unit with an annual output was shut down and Hualu Hengsheng’s 100,000-ton DMF technical transformation project was put into operation, the concentration of the domestic DMF industry has increased, and DMF production capacity has further increased to that of China. Industry leaders represented by Lu Hengsheng are concentrated.

From a price point of view, in 2020, due to the impact of environmental protection policies, the impact of the COVID-19 epidemic, and the permanent shutdown of some enterprise equipment, the supply of DMF products was tight in the early stage. The average price of DMF products rose to 6,396 yuan/ton for the whole year. In 2021, due to the large increase in raw material prices and the tight balance between supply and demand in the DMF market, the average price of domestic DMF products continues to run at a high level, with the annual average price rising to 13,751 yuan/ton.

Industry researchers said that DMF is mainly used in polyurethane slurry, pharmaceutical synthesis, electronics, food additives and other industries, especially polyurethane slurry The material field is the largest application field of DMF. After rectification in recent years, the demand in the field of polyurethane slurry will gradually stabilize. In addition, the expansion of new application fields such as food and electronics will also provide new development opportunities for the DMF industry. Although market demand is gradually increasing, there is less new production capacity in the DMF industry. Jiujiang Xinlianxin Fertilizer Co., Ltd. plans to build a new DMF project with an annual output of 100,000 tons and is expected to be put into operation in 2023, while domestic demand is stable at around 700,000 tons. , it is expected that the supply and demand of the DMF industry will maintain a tight balance in the next two years. Under this circumstance, the DMF market will continue to have a high degree of prosperity.