DMF: Demand recovery is slow, market ups and downs repeatedly

The reason for the continuous price shock lies in the decrease of the load of the main factory, the pressure of the supply side is lower than in the early stage, and the intention of the supply side to control the plate is increased, but the demand side of the downstream is not enough to support the market. The short-term RISE of DMF price can attract the demand to compensate, and after the price rebound, the demand will be suppressed again, and the supply and demand side keeps playing the game.

In the second half of May, with the resumption of downstream operation and the increase of upstream plant load, the weak pattern of supply and demand plagued by the epidemic is expected to be broken. On the one hand, the impact of the epidemic is gradually diminishing and various measures to stabilize growth have been implemented, which has boosted end consumption to some extent. Supply chains and industrial chains are gradually recovering, and marginal growth in demand is expected. In terms of the main downstream slurry of DMF, the current stage is mainly reflected in the obvious increase in the starting load of leading enterprises, while the increment of orders of most small and medium-sized manufacturers is still not obvious, and the starting load is low. In terms of supply, the operating load level of DMF's main plant has increased, and there is no plant equipment overhaul plan for the time being, so the supply expectation has also increased.

Overall, as demand side began to improve, supply also presents certain recovery, DMF industry chain gradually restored, but the current recovery is not balanced, most industry downstream after production rate, there is still a big gap compared with normal level, and considering the high raw material part still suppresses demand, combined with the market into the traditional low season, during June and July Therefore, the mentality of the demand side is still cautious, and the high price of raw materials may still lack continuous purchase support. Recently, DMF factories still flexibly adjust the price according to the shipment situation, and it is expected that the DMF market will continue to be mainly short-term fluctuations. Looking ahead, the market focus is still on the recovery of the demand side.