SEE: Jiutian Chemical Group reports surge in 3Q earnings of $10.5 mil due to stronger demand
This is due to export-oriented countries seeing their manufacturing capacity taking a beating in FY2020 due to Covid-19, which has led to general improvements in the export market for China’s manufacturers, and in turn, higher demand for DMF. Industry supply for DMF was also impacted by the permanent closure of Zhejiang Jiangshan Chemical, which was previously the second-largest DMF player in China in May 2020, due to urban planning initiatives by the Chinese government. The closure has resulted in a rise in DMF prices in 2HFY2020. Prices have remained elevated year-to-date (y-t-d) in 2021. As at Jan 13, asking prices for DMF in Southern China stands at RMB9,350 ($1,918.07), representing a 68.5% increase y-o-y and 14.0% growth y-t-d, according to Oilchem.net, an online platform for energy and chemical information in China.
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