“There has been exceptional demand for DMF, on the back of the strong industrial recovery in China following pandemic lockdowns. The fine chemical has a diversified range of applications, being a feedstock in the production of polyurethane, pharmaceutical and agrochemical products, as well as a universal industrial solvent that can be used as an absorbing agent,” Ho writes in a broker’s report on Nov 3.
As China continues its rapid recovery from Covid-19 lockdowns, strong demand for dimethylformamide (DMF) is likely to benefit SGX-listed Chinese chemical firm Jiutian Chemical.
With DMF’s ASP rising from RMB 4,512/tonne ($919.26) in 2QFY2020 to RMB5,925/tonne in 3QFY2020, UOB Kay Hian analyst Clement Ho sees strong earnings potential in the world’s second-largest DMF manufacturer. As of Nov 3, 2020, spot price for DMF is hovering at RMB 11,950/tonne.
