- Price Trend
Last week, the domestic Dimethyl Ether (DME) Market stopped falling and rose, and the price picked up slightly. At the beginning of the week, the average price of domestic DME (Henan) market was 3,020 RMB/ton, and at the end of the week, the average price was 3,060 RMB/ton, up 1.32% in the week, down 35.78% compared with the same period last year.
- Market Analysis
Product: last Tuesday, the transaction atmosphere of DME (Henan) market improved. As of November 22, such devices as Hebei Yutai, Henan Lankaohuitong and Shanxi Lanhua Technology Co., Ltd. had been shut down for maintenance, with no quotation for now; the new DME device in Henan Yima failed, with no quotation for now. The ex-factory price of Shengxin DME in Qinyang, Henan Province was 2,950 RMB/ton, that of Henan xinlianxin Chemical Industry Group Co., Ltd. was 2,950 RMB/ton, that of Hebei Jichun Chemical Co., Ltd. was 3,100 RMB/ton, that of Shandong Dezhou shengdeyuan company was 3,040 RMB/ton, and that of Shandong Yuhuang was 3,000 RMB/ton.
Last week, the market of cost methanol and LPG rose steadily with a strong trend, while the market of DME improved. In addition, in the early stage, the market price fell to a low level continuously, and most enterprises were on the edge of profit and loss. With a period of wait-and-see in the early stage, some traders had certain demand for replenishment. Downstream sourcing bottomed into the market, local shipments had improved, manufacturers' inventory pressure had eased, and they continued to rise after digesting to low levels. At present, the inventory pressure is not large, and a small number of manufacturers have started to sell limited quantities.
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%), LPG (- 1.51%) and asphalt (- 0.59%). Last week's average was 0.17%.
- Market Forecast
DME analysts believe that the market price continues to be small and the transaction situation is OK. At present, the market trend of cost methanol and LPG is relatively strong, which has certain support for DME market. However, with the completion of a new round of replenishment in the downstream, the demand in the later stage may turn weak. At present, there is no obvious pressure on the manufacturer's inventory, which is expected to be stable next week.
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