Last week, DME market first stabilized and then fell, with weak consolidation as the main trend. On February 24, the average market price of DME was 3,036.67 RMB/ ton, and on February 28, the average price was 3,003.33 RMB/ ton, with a decline of 1.01% during the period. The price was 4.76% lower than that of the same period last year.

Market Analysis

Product: last week, the market price of DME (Henan) was weak and mainly consolidated, and the market transaction atmosphere was weak. As of February 28, devices such as Hebei Yutai, Henan lankaohuitong, Shandong Dezhou shengdeyuan, Shanxi Lanhua technology venture Co., Ltd. had been shut down for maintenance, and there was no quotation temporarily; devices in Xinyuan DME of Henan Yima failed, and there was no quotation temporarily, and Henan xinlianxin kept the bottom for three consecutive days, and there was no quotation temporarily. The ex-factory price of Henan Qinyang Shengxin DME was 2,970 RMB/ ton, that of Hebei Jichun Chemical Co., Ltd. was 3,150 RMB/ ton, and that of Shandong Yuhuang DME was 3030 RMB/ ton.

DME market showed a continuous downward trend. Last week, the market operating rate rose compared with the previous period, and the market supply increased. However, the domestic demand did not increase significantly. After a small amount of replenishment in the downstream, it turned to a wait-and-see state. In addition, affected by the global epidemicof COVID-19, the international crude oil fell continuously this week by a large margin. The strong situation of the civil gas market was gone, and the weak callback mainly indirectly affected theDME market. The delivery atmosphere of manufacturers was weak, and the volume of transactions did not increase significantly. Henan Xinlianxin implemented three consecutive measures of minimum cost saving guarantee on Thursday. At present, the market supply exceeds the demand and the price continues to be weak.

Industry: according to the price monitoring of SunSirs, there were two kinds of commodities in the list of commodity prices rising and falling in the eighth week of 2020 (2.24-2.28), among which the top 2 were methanol (0.50%) and coking coal (0.45%). There were thirteen kinds of commodities falling on a month on month basis, 4 kinds of commodities falling by more than 5%, accounting for 25% of the number of commodities monitored in the sector; the top 3 products falling were WTI crude oil (-11.78%), Brent crude oil (-11.57%), and LPG (-8.64%). This week's average was -3.14%.

Market Forecast

At present, the market operating rate is higher than that in the earlier stage, but the domestic demand is still weak, and crude oil and LPG are falling sharply, which affects the market mentality. It is difficult for DME Market to clinch a deal, and the manufacturer's shipment situation becomes weak. At present, the market is in a situation of supply exceeding demand, but the demand is difficult to improve significantly in the short term. It is expected that the market will continue to be dominated by weak consolidation next week.

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