In the first half of 2024, Dimethylformamide (DMF) prices have decreased due to oversupply and weaker demand, with key producers in Saudi Arabia and China playing a significant role in the market. Saudi Arabia’s production remains strong, with several major chemical producers maintaining steady output levels. China as one of the largest global producers of DMF, continues to have a substantial market share, with its industry contributing significantly to the overall supply. The combination of high production levels in these regions, along with subdued demand from downstream sectors like chemicals, pharmaceuticals, and agrochemicals, has led to an oversupply, putting downward pressure on DMF prices.
In Q1 of 2024, Dimethylformamide (DMF) prices showed a downward trend compared to Q3 2023, primarily driven by an oversupply of the product and weaker demand across key regions. In China, prices fell by 8.2%, reflecting continued high production levels and reduced consumption from downstream sectors such as paints and coatings. Similarly, in Japan, prices decreased by 7.6%, as demand remained subdued due to slower economic growth and weaker industrial activity. The overall market was further pressured by stable feedstock costs, particularly for dimethylamine, which alleviated production cost pressures but did not stimulate demand. This combination of excess supply and lacklustre demand led to a price decline in both China and Sudi Arabia, which also affected importing countries like Vietnam, Brazil, Argentina and India, where lower demand for DMF from end-user industries further exacerbated the price drop.
In Q2 2024, Dimethylformamide (DMF) prices showed a further price drop in China, declining by 4.4%. This decline was driven by a drowning in demand from downstream sectors such as chemicals, pharmaceuticals, and electronic, as economic activity picked up and production resumed after seasonal slowdowns. But some tightening in supply due to production adjustments helped to support prices. In Saudi Arabia, prices stabilized at the upper end, as the market found balance between supply and demand. Despite ongoing economic challenges, the stabilization was fuelled by steady demand from key industries, along with more favourable feedstock pricing for dimethylamine. The combination of these factors helped to stabilize prices after the bearish trend in Q1, leading to higher decrease in China and a firming increase of prices in Saudi Arabia.
In Q3 of 2024, Dimethylformamide (DMF) prices further decline in China by 3.5% and in Japan prices remain stable, driven by stability in supply and demand across industries like pharmaceutical and chemicals. Stable prices in Saudi Arabia and decreasing prices in China had a positive impact on both regions. In Saudi Arabia, stable pricing for DMF ensured a consistent supply and allowed manufacturers to maintain stable production costs for industries like agrochemicals, pharmaceuticals, and chemicals. Conversely, in China, decreasing DMF prices contributed to lower procurement costs, helping manufacturers in downstream sectors benefit from reduced expenses. This trend could stimulate growth in these industries and foster competitive pricing for consumers.
In Q4 2024, Dimethylformamide prices are expected to stabilize due to modest demand recovery in the agrochemical and pharmaceutical sectors. Supply chain adjustments may alleviate constraints, but geopolitical tensions could create volatility. Overall, prices are likely to remain stable yet sensitive to ongoing market developments.