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SunSirs: Energy, Domestic DME Market Rose broadly last Week (January 5-10)

January 14 2020 17:59:23     SunSirs (Selena)

1  Price Trend

The domestic market price of DME (Henan) rose continuously last week. At the beginning of the week, the average price of domestic dimethyl ether (Henan) market was 3,083.33 RMB/ ton, and at the end of the week, the average price was 3,146.67 RMB ton, up 2.05% in the week, 12.02% lower than the same period last year.

2  Market Analysis

Product: the trading atmosphere of DME (Henan) market on last Tuesday is good. As of January 10, devices such as Hebei Yutai, Henan lankaohuitong and Shanxi Lanhua technology venture Co., Ltd. had been shut down for maintenance; there was no quotation for the failure of the new DME device in Henan Yima. The ex-factory price of Shengxin DME in Qinyang, Henan Province was 3,200 RMB/ ton, that of Henan Xinlianxin Chemical Industry Group Co., Ltd. was 3,290 RMB/ ton, that of Hebei Jichun Chemical Co., Ltd. was 3,600 RMB/ ton, that of Shandong Dezhou shengdeyuan company was 3,520 RMB/ ton, and that of Shandong Yuhuang was 3,350 RMB/ ton.

The market of DME rose on last Tuesday, especially in Henan. The market operating rate continued to decrease. At present, the operating rate is at a low level and the overall market supply is reduced. Last week, the methanol market increased significantly, the LPG market continued to rise, the gas ether gap continued to be expanded, the downstream bullish mentality was obvious, the main purchase into the market, the overall shipment of manufacturers was relatively smooth, the mentality was strong, and the prices were continuously increased. In the later stage, due to the sharp fall of international crude oil, the market was constrained to go up, and the enthusiasm for entering the market in the downstream turned to be weak, and the price subsequently stabilized, with some manufacturers slightly reducing the price.

Industry: according to the price monitoring of SunSirs, in last week of 2020 (1.6-1.10), there were 6 kinds of commodities in the list of rise and fall of bulk commodity prices in the energy sector, including 1 kind of commodity with a rise of more than 5%, accounting for 6.3% of the number of commodities monitored in the sector; the top 3 commodities were methanol (5.24%), fuel oil (3.70%) and DME (2.05%). There were 8 kinds of commodities falling on a month on month basis, 2 kinds of commodities falling by more than 5%, accounting for 12.5% of the number of commodities monitored in the sector; the top 3 products falling were LNG (-6.45%), WTI crude oil (-5.54%) and Brent crude oil (-4.71%). Last week's average was -0.69%.

3  Market Forecast

DME analysts of SunSirs believe that at present, the international crude oil has been lowered, which has some impact on the market. The terminal demand is limited. With the completion of a new round of replenishment in the downstream market, the main consumption inventory is delisting. However, at present, LPG is at a high level, which supports the market to a certain extent. It is expected that the future market will be adjusted in the short term or sideways.

 

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