Price trend

In October, the domestic DME market rose mainly as a whole, and the price of Henan market was firm, with significant increase. According to the data monitoring of SunSirs, the average price of DME in Henan market was 4,230 RMB/ton on October 1 and 4,560 RMB/ton on October 27, with a rise of 7.8% in the month, down 14.25% compared with the same period last year.

Analysis review

In October, the domestic DME market was relatively strong as a whole. The Henan market continued to increase mainly, and the Hebei and Jiangxi markets also rose to varying degrees, with significant amplitude.

After the National Day holiday, the Henan market rose strongly, and the factory quotation continued to rise. On the cost side, the raw material methanol market started to rise on September 25. As of October 8, methanol rose by 19.8% during this period. The sharp rise in raw materials had brought significant benefits to the DME market. On the supply side, many sets of devices, such as Hebi Baoma and Qinyang Shengxin, were parked, the market supply was low, and most manufacturers had no pressure on inventory. On the demand side, after the festival, the logistics was recovered, and the demand for downstream inventory and replenishment was good. The enthusiasm for entering the market was good, and the market trading atmosphere was relatively mild. The market was obviously favorable, and the DME market had sufficient driving force.

In the later period, with the price of raw materials falling back, and the terminal demand increasing was limited, the enthusiasm of downstream entering the market was less than that in the earlier period, and the power of DME to continue to rise was insufficient, so the price dropped slightly. However, the low supply level in Henan market had provided relative support, and the price of DME market was mostly sideways until the end of the month.

Market outlook

To sum up, the current raw material methanol market is weak, and the cost support for DME is insufficient. In terms of demand, the improvement of terminal demand is relatively limited, the enthusiasm of downstream market entry is not high, and the market trading atmosphere is general. However, in terms of supply, the market in Henan is relatively low. Most of the upstream inventories are under control. The manufacturers have an obvious attitude of price support, and most of the prices are stable. It is expected that DME is likely to continue to rise in November.

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