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SunSirs: The Dimethyl Ether (DME) Market Rose Sharply in September

2019-10-10 14:12:06     SunSirs (Selena)
  1. Price Trend

The domestic dimethyl ether (DME) market continued to rise in September. At the beginning of the month, the average price of domestic DME was 2,920 RMB/ton. At the end of the month, the average price was 3,320 RMB/ton. The increase rate was 13.7% in the month, and the price fell 31.9% compared with the same period last year.

  1. Analysis of Influencing Factors

Products: In September, the market price of DME (Henan) rose, and the trading atmosphere was good. As of September 30, no quotation has been made for the parking and maintenance of equipment such as Yutai in Hebei, Lankao Huitong in Henan, Shanxi Orchid Science and Technology Venture Co., Ltd., and for the breakdown of Yima Xinyuan DME plant in Henan. The ex-factory price of DME of Qinyang Shengxin in Henan was 3,370 RMB/ton, of Henan Xinlianxin Chemical Industry Group Co., Ltd. was 3,270 RMB/ton, of Hebei Jichun Chemical Industry Co., Ltd. was 3,350 RMB/ton, of Shandong Dezhou Shengdeyuan Co., Ltd. was 3,370 RMB/ton.

The peak season arrived in September, and market prices rose significantly. At the beginning of the month, the trend of DME was mainly turbulent. From the middle of the month to the end of the month, it showed a continuous upward trend. Due to the soaring crude oil, the liquefied petroleum gas market had a greater impact. The gas market was rising fiercely that supported the DME market, and prices had been raised, and the market began to warm up. In the latter period, the methanol market was strong and upward, and the demand for replenishment in the downstream before the festival increased. The trading atmosphere of the market continued to improve. Moreover, many factories parked before the holidays, the market supply was significantly reduced, the situation of supply exceeding demand appeared, the shipment of factories continued smoothly, many stocks were basically empty, and the price was pushed up all the way to the end of the month.

Industry: According to the price monitoring of SunSirs, there were eleven kinds of commodities rising annually in the energy sector in the list of commodity prices rising and falling in September 2019, of which four kinds of commodities had increased by more than 5%, accounting for 25% of the monitored commodities in the sector; the top three commodities were methanol (15.85%), dimethyl ether (13.70%) and gasoline (6.36%). There were five kinds of commodities that had declined annually, two of which had declined by more than 5%, accounting for 12.5% of the monitored commodities in this sector. The products of the first three declines were liquefied natural gas (-6.05%), coke (-5.50%) and coking coal (-3.98%). The month's average rise and fall was 2.2%.

  1. Market Forecast

SunSirs’ DME analyst believes that most manufacturers restart devices after the holidays, supply and capacity increased. Pre-Festival prices continue to rise to relatively high levels, downstream purchasing capacity is limited, and the market will be weaker.

 

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