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SunSirs: Energy, Advantages are Limited, DME Market Ups and Downs

April 23 2020 10:21:44     SunSirs (Selena)

According to the data monitoring of SunSirs, on April 13, DME again ushered in the rising market driven by LPG (Civil), but the late positive was limited, and on April 20, it returned to the downward trend. On April 13, the average market price of DME (Henan) was 2686.67 RMB/ ton, and on April 21, the average price was 2650 RMB/ ton, with a decline of 1.36%, the magnitude was 5.58%.

Market Analysis

From April 13 to 21, DME rose first and then fell, and the trading atmosphere of the market turned to weak. As of April 21, Hebei Yutai, Shanxi Orchid, Dezhou Shengdeyuan and other devices had been shut down for maintenance; Henan Yima Xinyuan DME device failed, so no offer was made temporarily. The ex-factory price of Henan Qinyang Shengxin DME was 2590 RMB/ ton, and that of Henan Xinlianxin Chemical Industry Group Co., Ltd. was guaranteed. The ex-factory price of DME in Hebei Jichun Chemical Co., Ltd. was 2700 RMB/ ton, that of Henan lankaohuitong was 2600 RMB/ ton, and that of Shandong Yuhuang was 2600 RMB/ ton.

In the early stage, DME market (Henan) continued to rise, with a good trading atmosphere. Propane market surged on April 12, driving the civil LPG market up. DME rose on the back of this positive trend, especially Henan Xinlianxin raised its price for 4 consecutive days. Under the mentality of buying up, downstreams actively entered the market to replenish goods. However, the propane market reversed sharply, the civil use of LPG lacked support, and the rise slowed down. DME rationally recovered under this influence. On April 20, DME market ushered in a downward trend. The trading atmosphere of the market was significantly weaker than that of the earlier stage. The decline of civil LPG affected the market mentality. The downstream market was delisted in a rational way, with the focus on wait-and-see. Among them, Henan Xinlianxin implemented the 2-day minimum policy.

Industry: according to the price monitoring of SunSirs, in the 15th week of 2020 (4.13-4.17), there were 5 commodities in the list of commodity price rise and fall in the energy sector, including 1 commodity with an increase of more than 5%, accounting for 6.3% of the monitored commodities in the sector; the top 3 commodities were LPG (8.62%), DME (4.47%) and MTBE (3.86%). There were 10 kinds of commodities falling on a month on month basis, with 3 kinds of commodities falling by more than 5%, accounting for 18.8% of the number of commodities monitored in the sector; the top 3 products falling were WTI crude oil (-12.70%), Brent crude oil (-11.63%) and naphtha (-10.17%). Last week's average was -1.58%.

Market Forecast

At present, international crude oil has fallen sharply, affecting market mentality. The civil trend of LPG is weak, which has some impact on DME market. And with the completion of the early replenishment, the downstream market mainly consumes inventory, and it is expected that the future market will still fall in the short term.


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