SunSirs: China DME Market Rose and Fell in a Hurry in January

In January, the market price of DME increased mainly in the first half of the month, but continued to decline in the second half of the month. Only in the middle of the month, it remained at the level of 3,500 RMB/ ton for a few days, and then the price fell back below 3,500 yuan. According to the data monitoring of SunSirs, the average price of DME in Henan market was 3,333.33 RMB/ ton on January 1, and 3,396.67 RMB/ ton on January 28, with an increase of 1.90% within the month, and the largest amplitude of 6.20%.

In the first half of January, the DME market continued the rising trend at the end of 2020. After the New Year’s Day, due to the strong trend of international crude oil, the price of LPG civil market rose sharply, the newsand market mentality was good, the market transaction atmosphere was good, the inventory level was low, and the factory greatly increased the ex-factory price. With the rise of international crude oil boosting the LPG market again, the DME market continued to follow the upward trend.

In the second half of January, the DME market continued to decline. Although the overall decline was not large, the market lacked positive support, and the methanol raw material mainly fluctuated in a narrow range, and the overall trend was weak. The civil LPG market was affected by the shock and fall of international crude oil, and the news was bad for the market. The market transaction was poor, and the manufacturers continuously lowered the ex factory price. With the decline of civil gas market, the price difference between gas and ether gradually narrowed. Affected by this, the inventory pressure of DME increased and the price fell.

At present, the main production areas of Henan market mostly to stop falling to stabilize, Shandong and Hebei markets also follow to stabilize. The weak cost of methanol has limited support for the market, the rebound of civil gas market has brought some support to the DME Market, the mentality of the downstream has improved, the enthusiasm for entering the market has increased, the inventory pressure of manufacturers has eased, and the price has stopped falling. Affected by the Spring Festival in February, there may be a slight rise in the market before and after the festival, but the market terminal demand is limited. It is expected that the DME market may fall more and rise less in February.

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