SunSirs: Domestic Dimethyl Ether (DME) Market Fell continuously last Week (November 11-15)

1. Price Trend

Last week, the domestic Dimethyl Ether (DME) market was mixed with multiple negative factors, with prices falling continuously. At the beginning of the week, the average price of domestic DME (Henan) market was 3,130 RMB/ton, and at the end of the week, the average price was 3,036.67 RMB/ton, down 2.98% in the week, 33.22% lower than the same period last year.

2. Market analysis

Product: last Tuesday, the market of DME (Henan) continued to decline, and the market transaction atmosphere was flat. As of November 15, the units of Hebei Yutai, Henan lankaohuitong and Shanxi Lanhua Technology had been shut down for maintenance, and no quotation was made temporarily; the unit of DME in Xinyuan of Henan Yima failed, and no quotation was made temporarily. The ex-factory price of Henan Qinyang Shengxin DME was 2,900 RMB/ton, of Henan Xinlianxin Chemical Industry Group Co., Ltd. Was 2,930 RMB/ton, of Hebei Jichun Chemical Co., Ltd. was 3,050 RMB/ton, of Shandong Dezhou Shengdeyuan company was 3,000 RMB/ton, and of Shandong Yuhuang was 2,940 RMB/ton.

Last week, the market trend of cost methanol and LPG was weak, while the market of DME was negative, and the price continued to fall. The downstream had a negative attitude towards the future market, and had no intention to enter the market for the continuously falling market, and was cautious and wait-and-see. At present, there is no obvious improvement in market demand, and the shipment of manufacturers is not smooth. The inventory in Henan Province is increasing gradually, and the mentality is relatively tired. Last week, the company Henan Xinlianxin repeatedly implemented the minimum guarantee policy. The price of most of the manufacturers fell below 3,000 RMB/ton. At present, the price has fallen to the cost, and some enterprises' profits are hanging upside down, reducing production to ease the pressure of sales and inventory.

Industry: according to the price monitoring of SunSirs, in the 45th week of 2019 (11.11-11.15), there are three kinds of commodities rising month on month in the energy sector, the top 3 of which are liquefied natural gas(LNG) (3.27%), MTBE (1.23%) and liquefied petroleum gas (LPG) (0.34%). There are ten kinds of commodities falling on a month on month basis, with methanol (- 4.10%), petroleum coke (- 3.96%) and dimethyl ether (- 2.98%) as the top 3. This week's average was - 0.57%.

3. Market Forecast

According to the DME analyst of business agency, the market trend of cost methanol and liquefied gas is weak at present, and the environmental protection department in Henan Province has increased the strength of trucks, which is a negative market mentality. Market multiple negative factors intertwined, downstream cautious market, transaction atmosphere did not improve. The stock pressure of manufacturers is large, but some enterprises have been in the profit upside down, and there is not much room for deep decline. It is expected that there will be a slight decline next week.

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