They believe that the strong average selling price (ASP) is mainly due to higher input costs, lower industry supply in the near term with ongoing plant maintenance of major players (likely to last till end-October), and power curbs impacting production of some industry players.
CGS-CIMB Research analysts Ong Kang Chuen and Kenneth Tan have continued to maintain their “buy” call and target price of 14 cents on Jiutian Chemical as prices of dimethylformamide (DMF), a solvent that Jiutian produces, continue their climb.
Ong and Tan note that according to 100ppi.com, DMF prices averaged about RMB14,500 ($3,048) per tonne in Sep 2021, almost double that of last year, and DMF prices further surged to a record high of RMB18,200 per tonne in the latest quotation seen this week.
