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SunSirs: Bad News, China DME Fell nearly 4% in a Single Day
February 25 2021 10:03:31SunSirs(Selena)

In February, the overall trend of DME Market was weak, and there was a broad decline trend after the Spring Festival. At present, the mainstream quotation in the domestic market is about 3,230-3,250 RMB/ ton. According to the data monitoring of SunSirs, the average price of DME in Henan market was 3,446.67 RMB/ ton on February 1, 3,243.33 RMB/ ton on February 22, with a decrease of 5.90% during the period, and a single day decrease of 3.95% on February 22, showing a more obvious decline.

With the end of the Spring Festival holiday, DME Market as a whole is weak. Although the international crude oil continued to rise after the festival, and the liquefied gas market was greatly pulled up by this good news, the DME Market did not follow the trend, only slightly increased on February 18, but then entered the downward channel, and the overall trend was weak.

On February 22, the DME market fell more significantly. The domestic regional markets as a whole sharply reduced the ex factory price. Some enterprises lowered the ex factory price twice on the same day. Taking Henan Xinlianxin as an example, the ex-factory price of Xinlianxin DME was 3,340 RMB/ ton on February 21, 3,240 RMB/ ton on February 22, and 100 RMB/ ton on a single day. The main reason for the decline is the poor terminal demand. After the Spring Festival, only a small part of the downstream enter the market for replenishment, but the overall shipment of the manufacturers is still not smooth, the inventory is gradually increasing, and the factory price is forced to be reduced to stimulate the downstream enter the market.

As for the cost of methanol, the domestic methanol market has recovered in a narrow range recently. According to the monitoring data of SunSirs, as of February 20, the average price of methanol producers in Shandong was 2,267 RMB/ ton, with a month on month decrease of 3.92% and a year-on-year increase of 14.09%. After the festival, the downstream enterprises replenish goods appropriately, the logistics is restored, and the freight is reduced. Domestic methanol market recovered slowly.

At present, although the methanol market has recovered, the support to DME market is limited. The civil market of liquefied gas fell significantly, which brought some pressure to the market. Downstream mentality cautious, lack of confidence in the future, less enthusiasm to enter the market, manufacturers shipping blocked, inventory gradually increased. In the short term, DME Market is lack of good news, and the overall or continued weak.

 

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