SunSirs: Energy, Weak Trading Atmosphere, DME Market Continues to Decline

Price Trend

After the Spring Festival, DME market mainly fell. On February 3, the average market price of DME was 3,340 RMB/ ton, and on February 24, the average market price was 3,036.67 RMB/ ton, with a drop of 9.08% in the week. The price was 10.42% lower than that of the same period last year.

Market Analysis

Product: after the Spring Festival, the market price of DME (Henan) shows a continuous downward trend, and the market transaction atmosphere is weak. As of February 24, the equipment of Hebei Yutai, Henan lankaohuitong, Shandong Dezhou shengdeyuan, Shanxi Lanhua science and technology venture Co., Ltd. had been stopped for maintenance, and no quotation was made temporarily; the DME equipment in Henan Yima Xinyuan had failed, and no quotation was made temporarily. The ex-factory price of Henan Qinyang Shengxin DME was 3,070 RMB/ ton, that of Henan Xinlianxin Chemical Industry Group Co., Ltd. was 3,090 RMB/ ton, and that of Hebei Jichun Chemical Industry Co., Ltd. was 3,220 RMB/ ton, and that of Shandong Yuhuang was 3,060 RMB/ ton.

DME market shows a continuous downward trend. At present, the market operating rate is higher than that of the previous period, and the market supply is increased. However, the recovery of downstream construction is slow, and the current transportation is still limited. Most enterprises' inventory digestion is slow, and the market transaction atmosphere is weak, which hinders the price rise. Although the international civil market of crude oil and LPG has increased significantly, it has a limited positive effect on DME market.

Industry: according to the price monitoring of SunSirs, there were three kinds of commodities in the list of rise and fall of bulk commodity prices on February 24, 2020. The top 3 commodities were LNG (2.57%), LPG (1.25%) and gasoline (0.11%). There were seven kinds of commodities falling on a month on month basis, and the top 3 products falling were MTBE (-1.61%), Brent crude oil (-1.37%) and DME (-1.19%). The average price of this day was -0.2%.

Market Forecast

At present, the market operation rate has increased, the demand continues to be weak, the convenience of transportation still has resistance, the market transaction atmosphere is weak, and the price continues to fall. In the later period, with the recovery of transportation and the resumption of domestic construction, the demand continued to rise, and the price may stop falling and rebounding. It is expected that the weak consolidation will be dominant in the short term, and there is a possibility of rebound in the long term.

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