SunSirs: In July, China DME Market Rose as a Whole, or will the Weak Situation no Longer Exist?

In July, the DME market hit the bottom and rebounded, ushering in a rising situation. According to the data monitoring of SunSirs, the average price of DME in Henan market on July 1 was 2,193.33 RMB/ ton, and that on July 31 was 2,366.67 RMB/ ton. During the period, the average price increased by 7.90%, and the maximum earthquake amplitude was 12.46%, which was 26.27% lower than that of the same period last year.

At the beginning of July, the trading atmosphere of DME market was relatively stable, and the increase was not obvious. In middle July, the civil market of LPG continued to rise, which was beneficial to the market mentality. The enthusiasm of entering the market was improved under the mentality of buying and rising downstream, and the market transaction atmosphere became better. Until the end of July, the market price became loose, the rise of DME was suspended, and it entered the downward channel again.

In July, the civil LPG market showed an upward trend as a whole. During the month, the maintenance of some units in some refineries led to a decrease in the supply in the area. The downstream bullish mentality led to the active entry into the market. The manufacturers delivered goods smoothly, the inventory maintained a medium low level, and the price continued to rise. The rise in domestic gas was one of the main reasons for DME's rebound in July.

In terms of cost, the methanol market continued to fluctuate in July. Although the market in the first ten days went up slightly, the market in the last ten days dropped rapidly and the previous low level. The weak cost has limited support for the DME market.

By the end of July, the domestic DME operating rate was about 11%, which was lower than that in June. In terms of demand, affected by seasonal factors, terminal demand needs to be improved. With the completion of replenishment in the downstream, delisting mainly consumes inventory, and the market transaction atmosphere turns lighter than that in the earlier stage, and returns to rationality at the end of the month, and then turns to the downward channel again. Although the price of domestic gas still rose slightly at the end of the month, it did not boost the DME market. Looking at the future market, the current market for DME has limited advantages, and the rebound is hindered. It is still difficult to raise the price in August, or it is mainly stable in a large area.

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