China’s domestic dimethyl ether market fell steadily this week (6.24-6.28)

Price Trend

The domestic dimethyl ether market fell steadily this week. At the beginning of the week, the average domestic dimethyl ether (Henan) market price was 3 080 yuan/ton, and the weekend average price was 3 070 yuan/ton. Within the week, the price dropped by 0.32%, which was 32.69% lower than the same period last year.

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II. Market Analysis

Products: Dimethyl ether (Henan) market prices fell this week, the market trading atmosphere is light. Up to June 28, Hebei Yutai, Henan Qinyang Shengxin, Shandong Yuhuang Dimethyl Ether, Shanxi Orchid Science and Technology Venture Co., Ltd. Dimethyl Ether plant parking overhaul, temporarily not quoted. Henan Lankao Huitong dimethyl ether factory price is 3060 yuan/ton, Henan Yima Xinyuan dimethyl ether factory price is 3060 yuan/ton, Hebei Jichun Chemical Co., Ltd. dimethyl ether factory price is 3040 yuan/ton, Shandong Dezhou Shengdeyuan company dimethyl ether factory price is 3060 yuan/ton.

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Industry chain: The domestic methanol market fell slightly this week. At the beginning of the week, the average domestic methanol market price was 2180 yuan/ton, which was 0.27% lower than that of the same period last year, and 17.66% lower than that of the same period last year. The domestic liquefied petroleum gas (Shandong) market rose narrowly this week, with an average price of 3783.33 yuan/ton at the beginning of the week and 3800 yuan/ton at the end of the week, an increase of 0.44% in the week, and a decrease of 8.67% over the same period last year. This week’s rise in international crude oil has boosted the liquefied petroleum gas market, but the overall trend is weak, combined with the cost of methanol horizontal adjustment, the cost support is insufficient. At present, dimethyl ether is in the off-season, terminal demand follow-up is insufficient, downstream procurement enthusiasm is not high, manufacturers shipment situation is poor, inventory pressure is increasing.

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Industry: According to the price monitoring of business associations, in the 25th week of 2019 (6.24-6.28), there were seven kinds of commodities rising annually in the energy sector. The top three commodities were WTI crude oil (3.48%), MTBE (2.11%) and Brent crude oil (2.07%). There are seven kinds of goods that have declined in the ring ratio. The first three products are petroleum coke (-1.25%), gasoline (-0.33%) and dimethyl ether (-0.32%). This week’s average rise and fall was 0.52%.

3. Future Market Forecast

Dimethyl ether business analysts believe that the current market is in the off-season demand, manufacturers shipment situation is poor, inventory pressure is increasing. However, the price has fallen to a relatively low level and there is little room for a reduction. It is expected that the future market will be stable.