SunSirs: China DME Market is Weak in February

During the Spring Festival, the overall trend of DME Market before and after the festival is not optimistic, and the whole month market is mainly weak, which is one of the few declining products in the energy sector in February. According to the data monitoring of SunSirs, the average price of DME in Henan market was 3,446.67 RMB/ ton on February 1, and 3,156.67 RMB/ ton on February 25, with an overall decline of 8.41% in February.

Since February 2, DME began to fall. Although the international crude oil continued to rise and the news was favorable to the market mentality, the civil LPG market was limited and mainly fell in shock, which affected the DME Market. And with the end of pre Festival replenishment in the downstream, the market transaction atmosphere is significantly weaker than that in the early stage. Before the festival, the manufacturer's shipment is not smooth, and the decline range is different, so they adjust according to their own situation.

After the Spring festival, the DME market continued to decline. Although the international crude oil continued to rise after the festival, and the LPG market was greatly pulled up by this good news, the DME Market did not follow the rise, and the overall trend was still weak. On February 21, the DME Market showed a significant decline, and the factory prices of various regions were significantly reduced as a whole. On the same day, some enterprises lowered their factory prices for the second time. The main reason for the decline is that the terminal demand is not good, and the downstream is not able to cope with it. After the festival, only a small part of the market replenishment operation, but the overall shipment of the manufacturers is still not smooth, the inventory is gradually increasing, and the pressure is greater, so they are forced to reduce the factory price substantially continuously, and the profit is given priority to the shipment.

In terms of methanol cost, methanol first decreased and then increased in February, but the overall monthly decline, and the weak cost brought limited support to the DME market.

On the whole, at the end of February, the cost of methanol and liquefied gas markets both recovered, but the increase rate was small, which brought limited support to the DME Market. Near the end of the month, the price of CP will be released in March, which is expected to rise. The civil LPG market is expected to rise, which may bring a certain boost to the DME Market. However, due to the impact of demand, the downstream industry is cautious and less motivated to enter the market. The manufacturers are under great inventory pressure and the market is very limited. China DME Market is expected to be mainly volatile in March, and the overall trend may still be weak.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.