In March, the domestic market of DME continued to bottom out, during which it rebounded twice, but the momentum was insufficient, and the overall market still fell. At the beginning of the month, the average price of domestic DME market was 3,003.33 RMB/ ton, and at the end of the month, the average price was 2,556.67 RMB/ ton, with a drop of 14.87% in the month, 24.36% lower than the same period last year.

Market Analysis

In March, the DME market fell, and the trading atmosphere continued to be light. As of March 31, there was no price for the parking of DME devices in Hebei Yutai, Shandong shengdeyuan, Henan Yima Xinyuan and Shanxi Orchid Company. The ex-factory price of DME of Henan Lankao Huitong Chemical Co., Ltd. was 2,550 RMB/ ton, that of Henan Xinlianxin Chemical Industry Group Co., Ltd. was 2,570 RMB/ ton, that of Henan Shengxin Biotechnology Co., Ltd. was 2,550 RMB/ ton, and that of Hebei Jichun Chemical Co., Ltd. was 2,600 RMB/ ton.

After March, the domestic DME industry, except for some enterprises, basically entered a comprehensive production state. However, due to the continuous price reduction in the later period, some enterprises reduced their load production. In March, the operating rate of DME was about 10%, and the market trading atmosphere remained depressed, which was hard to change. The international crude oil fell sharply last month, which significantly depressed the LPG market. Although the demand for civil gas increased last month, the range was relatively limited, mainly following the broad decline of crude oil. However, there was no difference in the price of gas ether, and the demand for DME decreased. The market of cost methanol also continued to decline in March. Affected by COVID-19, the downstream demand of domestic methanol spot market recovered slowly, especially the traditional downstream market. After the middle of March, the impact of COVID-19, the continuous drop of foreign financial market triggered the fuse, the pressure of the surrounding environment, methanol fell widely, mostly refreshing new lows in the year and some regional production enterprises have touched production lines or lost money. Affected by the weakness of civil gas and cost methanol, the market of DME rebounded twice this month, and it was difficult to reverse the situation and continue the decline.

Market Forecast

In March, the domestic methanol price continued to decline, some of which fell near the cost line, and some of the factories had lost money; most of the factories in the main production area had little inventory pressure, and the purchase of purchased olefins was relatively considerable, with the possibility of rising in the later stage. At present, the inventory of civil gas market is temporarily controllable, but the downstream market is bearish and cautious. After the introduction of CP in April, the decline is less than expected, which brings good results, but it is still greatly affected by crude oil in the later stage. At present, the price of gas ether is basically the same, so the demand for DME is reduced. It is expected that if the LPG market rises significantly in April, it will bring a boost to the DME market.

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