Market Analysis

Product: the market price of DME (Henan) rebounded after falling last week, and the market trading atmosphere improved. As of March 6, Hebei Yutai, Henan lankaohuitong, Shandong Dezhou shengdeyuan, Shanxi Lanhua science and Technology Co., Ltd. and other devices had been stopped for maintenance, they were not quoted temporarily; Henan Yima Xinyuan DME device failed, and they were not quoted temporarily, Henan xinlianxin DME factory price was 2,940 RMB/ ton, Henan Qinyang Shengxin DME factory price was 2,900 RMB/ ton. The ex-factory price of DME of Hebei Jichun Chemical Co., Ltd was 3,070 RMB/ ton, and that of Shandong Yuhuang was 2,920 RMB/ ton.

DME market rebounded after the decline. Last week, the domestic DME market started at about 13%, up from the previous week. In the early part of the week, DME market continued to decline, domestic recovery was slow, demand was less, the overall supply of the market increased, the contradiction between supply and demand was prominent, and prices continued to decline. In the later part of the week, with the support of crude oil, the civil market of liquefied gas continued to rise, and the downstream market entered the market for staged replenishment. The trading atmosphere of DME market improved, and rebounded last week.

Industry: according to the price monitoring of SunSirs, there were five commodities in the list of commodity prices rising and falling in the ninth week of 2020 (3.2-3.6), among which the top three were MTBE (3.42%), petroleum coke (3.37%) and LPG (3.20%). There were 9 kinds of commodities with a decline on a month on month basis, and the top 3 products were coke (-3.11%), gasoline (-2.56%) and DME (-1.68%). This week's average was -0.03%.

Market Forecast

At present, there are many negative factors, and the market operating rate continues to rise compared with the previous period. However, due to the slow resumption of domestic work and less demand, the replenishment cycle of the downstream in current stage is relatively short, and then the delisting and consumption of inventory are mainly followed. In the short term, the situation of market oversupply is difficult to change. The later trend is still affected by international crude oil, and it is expected that the market will resume weak downward trend next week.

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