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SunSirs: DME Market Trend Bottomed Out and Rebounded in China

March 11 2021 08:00:11     SunSirs (Selena)

In February, the market of DME was weak. In March, DME market finally ushered in a rebound. According to the data monitoring of SunSirs, the average price of DME in Henan market was 3,043.33 RMB/ ton on March 4 and 3,153.33 RMB/ ton on March 9, with an increase of 3.61% and a decrease of 8.51% compared with February 1.

Since February, the DME Market has been in a downward trend. Due to insufficient downstream demand, the DME Market is weak and hard to find good. In March, the good news came, and the DME market finally ushered in a rebound. First of all, in terms of methanol cost, the methanol market began to rise continuously in February. Due to the small increase in the early stage, the benefits to DME were limited. However, in March, the methanol market rose widely, which brought obvious support to DME.

Secondly, the civil LPG market has been boosted by the recent rise of international crude oil. The civil LPG market has stopped falling and gone up, and the price difference between gas and ether has gradually widened, which has brought certain benefits to the market. DME Market favorable factors hit, the cost of methanol and LPG both up, manufacturers have a strong mentality, and prices are actively rising. Take Henan Xinlianxin as an example. On March 5, xinlianxin DME was quoted at 3,000 RMB/ ton, and on March 10, xinlianxin DME was quoted at 3,130 RMB/ ton, up 130 RMB/ ton in just a few days. The downstream market is active, the overall situation of manufacturers' shipment is smooth, and the prices in various regions are widely pushed up.

On the whole, the main reason for the positive market is the rising cost of methanol, followed by the rise of LPG for civil use, which has also brought obvious boost to the market. At present, the enthusiasm of downstream market entry is relatively positive, and the mentality of manufacturers is relatively strong. However, as the weather gradually stabilizes, the downstream demand is limited, and the negative market factors still exist. It is expected that China DME market may rise in shock in the short term, with limited range.

 

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