SunSirs: Narrow Adjustment of Domestic Dimethyl Ether (DME) Market (November 25-29)

1. Price Trend

This week, the domestic market price of Dimethyl Ether (DME) (Henan) slightly adjusted. At the beginning of the week, the average price of domestic DME (Henan) market was 2,960 RMB/ton, and at the end of the week, the average price was 2,950 RMB/ton, with a drop of 0.38% in the week, 25.06% lower than the same period last year.

1. Market Analysis

Product: the transaction atmosphere of DME (Henan) market on Tuesday was general. As of November 29, such devices in Hebei Yutai, Lankao Henan Lankao Huitong, and Shanxi Lanhua science and Technology Co., Ltd. had been shut down for maintenance, and no quotation was made temporarily; the DME device in Henan Yima Xinyuan had failed, and no quotation was made temporarily. The ex-factory price of Henan Qinyang Shengxin DME was 2,940 RMB/ton, of Henan Xinlianxin Chemical Industry Group Co., Ltd. was 2960 RMB/ton, of Hebei Jichun Chemical Industry Co., Ltd. was 3,130 RMB/ton, Ltd., of Shandong Dezhou Shengdeyuan was 3,000 RMB/ton and of Shandong Yuhuang DME was 3100 RMB/ton.

DME market rose first and then fell, slightly adjusted, and the operating rate of this week was lower than that of last week. Cost methanol rose slightly, while LPG rose steadily, with a relatively strong trend, supporting the DME market. Methanol rose slightly at the beginning of the week, while DME followed. However, the market terminal demand has some influence on the price of DME, and then Henan Xinlianxin implemented the two-day minimum guarantee policy. The market was favorable with limited support, and the price fell later. But at present, local profits are close to costs, and manufacturers have no intention of deep decline. Some manufacturers stop to stock, the market supply decreases, and the price gradually stabilizes.

Industry: according to the price monitoring of SunSirs, in the 46th week of 2019 (11.18-11.22), there were seven commodities in the list of commodity prices rising and falling, among which the top 3 commodities were MTBE (2.05%), WTI crude oil (1.49%) and DME (1.32%). There were five kinds of commodities falling on a month on month basis, and the top 3 products were petroleum coke (- 3.18%), LNG (- 1.51%) and asphalt (- 0.59%). This week's average was 0.17%.

3.Market Forecast

According to DME analysts of SunSirs, at present, the demand for DME terminal continues to be poor. Although the price has a small rise, it has limited support for the market. LPG has a small rise under the boost of CP in December, which has certain support for the market. At present, the profit is close to the cost, and the manufacturers are willing to support the market. It is expected that the future market may rise steadily in the short term.

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