Dimethylformamide (DMF) capacity utilization is low and industry development tends to be stable

Dimethylformamide (DMF) is a transparent organic compound that is often used as a solvent in industry and is a widely used chemical raw material. DMF is one of the products with high economic value in the modern coal chemical industry chain. It is mainly used in the fields of polyurethane, man-made fibers, food additives, electronic grade slurry and pharmaceuticals. Benefiting from the development of the terminal industry, the market demand for DMF is relatively high.

As far as the domestic DMF supply side is concerned, due to the impact of environmental protection policies, my country’s DMF production capacity has shown a continuous decreasing trend in the past five years, from about 1.18 million tons in 2017 to 900,000 tons in 2021. In terms of output, DMF output has fluctuated in the past five years. In 2017, the output was only 580,000 tons, and by 2021 it will increase to 660,000 tons. Judging from the above domestic DMF production capacity and output, my country’s DMF production capacity conversion rate will be about 76% in 2021, and the industry’s capacity utilization rate is low.

According to the “China Dimethylformamide DMF Industry Market Demand and Investment Planning Analysis Report 2022-2026” released by the Industrial Research Center It shows that in terms of market demand, my country’s DMF market demand is basically stable, with slight fluctuations in the past three years. In 2017, my country’s DMF market demand was approximately 620,000 tons, and in 2021, the DMF market demand will be 530,000 tons. In terms of application demand, DMF is mainly used as slurry, accounting for 60% of the market demand, followed by pesticides and pharmaceutical intermediates, accounting for 187%. As a slurry, DMF is mainly used in industries such as luggage, shoes and hats, and clothing. However, because the terminal industry is relatively mature and there is less room for future development, the demand for DMF is gradually decreasing.

In terms of import and export, my country is a DMF exporting country with a relatively high annual export volume. In 2021, my country’s DMF export volume will be about 130,000 tons. my country’s DMF is mainly exported to countries such as South Korea, Japan, and India, of which South Korea and Japan account for about 55% of my country’s total DMF exports.

In terms of market competition, my country’s DMF market is highly concentrated. Hualu Hengsheng has the highest production capacity, accounting for 35% of its production capacity, followed by Anyang Jiutian, accounting for 18%, and Jin Media Sun and Moon, which ranks third. Accounting for 14%, the remaining two companies, Yanchang Petroleum Xinghua and Luxi Chemical, both account for about 11%. Hualu Hengsheng has more than 300,000 tons of DMF capacity and is the world’s largest DMF manufacturer.

Industrial analysts said that DMF is mainly used as PU slurry and is used in luggage, shoemaking and other fields. The development of the above terminal industries is relatively mature. Affected by the epidemic in 2020, the prosperity of the above industries is low. Therefore, the demand for DMF is reduced and the industry development is sluggish. However, as the global economy gradually recovers, DMF market demand will gradually rebound. Generally speaking, domestic DMF production capacity is overcapacity, terminal demand is difficult to grow significantly, and there is little room for development of the DMF industry in the future. my country is an important DMF producing country in the world. There are few domestic DMF producing companies, the market concentration is high, and the leading companies have great influence in the global market.