SunSirs: Strong Raw Material Support, China DME Market Rose sharply

In the second week of September, due to the favorable cost of methanol, the DME market ushered in a sharp rise. According to the data monitoring of SunSirs, the average price of DME in Henan market was 3,562.50 RMB/ ton on September 1 and 3,681.25 RMB/ ton on September 9, with an increase of 3.92% during the week and 4.80% compared with August 1.

After experiencing a tepid market for more than a month, the DME market finally ushered in a sharp rise in the second week of September. The DME Market in Henan increased by nearly 4% during the week, and the quotations of most manufacturers in Henan, the main production area, rose to above 3,700 RMB/ ton. There were many positive factors in the market this week, which supported the continuous rise of DME prices. First, the methanol market rose sharply, and the rise of raw material market brought strong support to DME. Followed by the liquefied gas market, civil gas continued to rise during the week, and the price difference between gas and ether gradually opened, which was good for the market mentality. The downstream market entry is more positive, the manufacturer's shipment is smooth, the mentality is strong, and the price is pushed up one after another.

In terms of cost methanol market, on September 9, the methanol market in Henan increased sharply, and the on-site trading was good. The bidding transaction of main enterprises in Henan Province was 2,750-2,760 RMB/ ton, and the factory withdrew cash exchange, up 165 RMB/ ton compared with Tuesday; Other enterprises offer stable prices and execute orders for shipment; Luoyang market negotiation refers to 2,700-2,770 RMB/ ton of out of tank spot exchange. The negotiated price of methanol market in central Shandong is 2,600-2,620 RMB/ ton and delivered to spot exchange. The price of local methanol factory in central Shandong is stable at 2,790-2,800 RMB/ ton. The factory provides spot exchange, and the transaction is still good.

At present, the rising cost of methanol and LPG civil market has brought strong support to the DME Market. The downstream has staged replenishment into the market, with good enthusiasm, smooth shipment of manufacturers, controllable inventory and strong mentality. At present, there are still negative factors in the market. Although it has entered the peak season in September, the terminal demand has not improved significantly, which has significantly restrained the rising market. In general, the rise of China DME Market is limited, and it is mainly increased in the short term or steadily.

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