Dimethyl ether market fell in August

Price Trend

In August, the domestic dimethyl ether market continued to decline. At the beginning of the month, the average domestic dimethyl ether market price was 3210 yuan/ton, and at the end of the month, the average price was 2920 yuan/ton. The decline rate in the month was 9.03%, and the price fell 30.29% compared with the same period last year.

II. Market Analysis

Products: Dimethyl ether market continued to decline in August, the market trading atmosphere is flat. As of August 30, Hebei Yutai dimethyl ether plant is not quoted for parking, Henan Lankao Huitong Chemical Co., Ltd. is not quoted for dimethyl ether, Henan Yima Xinyuan dimethyl ether plant failure is not quoted for the time being. The ex-factory price of dimethyl ether of Henan Xinlian Chemical Industry Group Co., Ltd. is 2910 yuan/ton, that of Henan Shengxin Biotechnology Co., Ltd. is 2850 yuan/ton, that of Hebei Jichun Chemical Co., Ltd. is 3000 yuan/ton, that of Shandong Dezhou Shengdeyuan Co., Ltd. is 2980 yuan/ton, and that of Shanxi Orchidaceae Co., Ltd. The ex-factory price of dimethyl ether in Technological Venture Co., Ltd. is 2900 yuan/ton.

The domestic dimethyl ether market continued to decline in August. At the beginning of August, the profit of dimethyl ether Market was relatively high. Some manufacturers started driving and the market supply increased, but the terminal demand was slow, the contradiction between supply and demand was prominent, and the price fell mainly. In mid-August, in order to avoid the continuous downward price, Henan Xinlian implemented the policy of keeping the bottom price for many times. Although it protected the market price on the side, it still did not alleviate the shipment situation of manufacturers. Inventory accumulated, pressure increased gradually, more profit was given priority to the shipment, and the price was lowered again. Until the end of August, the dimethyl ether Market has not improved substantially, the inventory of dimethyl ether manufacturers is difficult to release. Most enterprises’prices have fallen below 3000 yuan. The downstream market has a strong hollow outlook on the future market. Most of them are on demand, wait-and-see. The manufacturers’ shipments continue to be cold and the market continues to be weak.

Industry chain:

In August, the methanol market rose first and then depressed. In the early August of Henan, the overhaul of enterprises increased, the market supply decreased, and the prices continued to rise. However, in late August, there is no substantial improvement in downstream demand, the overall shipment is not satisfactory, the pressure on merchants to ship is increasing, and the price fluctuation is falling. In the latter half of the year, most devices were restarted one after another. In addition, the trend of futures market was weak, which affected the market mentality. The downstream mentality was cautious, multi-wait-and-see was dominant, and the price continued to weaken. At present, downstream demand is in a weak position, and port inventory remains high.

The narrow adjustment of liquefied petroleum gas (Shandong market) shocks in August is the main factor, and the international crude oil price still has a great impact on the liquefied petroleum gas market this month. In early August, liquefied petroleum gas prices continued to be low, downstream risky mentality into the market was positive, manufacturers shipped more smoothly, inventory pressure, and then pushed up. However, limited by the decline in international crude oil, the increase is not significant. In mid-August, the typhoon affected the production and transportation of the manufacturers, blocked shipment for several days in a row, and prices fell. Subsequently, the weather gradually weakened, shipments returned to normal, inventory was eased, and international crude oil pushed the market higher. But shipments have improved for a short time, although the traditional sales season is approaching, but demand is limited, coupled with the expected fall in September CP, downstream bearish on the future market, the enthusiasm for entering the market has faded. The shipment of the manufacturer returned to flat again, and the price fell again at the end of August. Until September CP was introduced, propane had fallen but less than expected, alleviating the market mentality and rising prices slightly.

Industry: According to the price monitoring of business associations, in August 2019, there were five kinds of commodities rising in the energy sector, of which more than 5% increased, accounting for 6.3% of the monitored commodities in the sector. The top three commodities were MTBE (8.16%), gasoline (2.24%) and methanol (1.22%). There are 11 kinds of commodities with a decline of more than 5%, accounting for 25% of the monitored commodities in this sector. The products with the first three declines are dimethyl ether (-9.03%), liquefied natural gas (-7.08%) and Brent crude oil (-6.28%). This month’s average rise and fall was -1.52%.

3. Future Market Forecast

Dimethyl ether business analysts believe that: at present, the trend of cost methanol and liquefied gas is weak, negative market mentality, but as the weather gets cooler in September, the demand for liquefied gas is gradually rising, which may boost the market. The dimethyl ether Market is expected to stabilize in September.