Price trend
In April, the domestic DME market was weak and the overall market in Henan slightly declined. According to data monitoring by SunSirs, the average price of DME in the Henan market was 4,420 RMB/ton on April 1st, and 4,090 RMB/ton on April 27th. The monthly decline was 0.73%, and a decrease of 0.12% compared to the same period last year.
Analysis review
The overall trend of the DME market in April was weak, with low demand and flat trading. At the beginning of the month, the DME market in Henan Province experienced a tentative increase, and the pressure on supply and demand in the market eased. Due to the shutdown and maintenance of the 200,000 ton DME unit in Henan Kaixiang at the beginning of the month, market supply decreased, and at the same time, crude oil surged significantly during the week, boosting the mindset of the industry. On the demand side, mainly rigid demand, and on-site inventory was relatively high, and the market lacked power for continuous rise. Subsequently, the market experienced a narrow range of fluctuations and consolidation operations, the pressure on inventory in the market was significant. Factories gave up profits to destock and sell, and some factories had plans to reduce their load. Downstream demand continued to be sluggish, with bearish factors dominating, it was difficult for the DME market to improve.
The market for raw material methanol had shifted from strong to weak, with a downward trend of volatility. From April 1st to 27th (as of 15:00 in the afternoon), the average market price of the domestic methanol at East China ports dropped from 2,561 RMB/ton to 2,486 RMB/ton, a 2.93% decrease in price during the cycle.
Market outlook
Overall, cost support had weakened, inventory of DME manufacturers remained high, and there was no sign of improvement in market demand. There is an expectation of a decrease in the supply of DME in the future, and it is expected that the DME market will operate in a weak and volatile manner in the short term.
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