DME Market showed a continuous upward trend during the week, with many favorable factors in the market, which supported the continuous rise of prices. According to the data monitoring of SunSirs, the average price of DME in Henan market on December 14 was 3,013.33 RMB/ ton, and that on December 17 was 3,203.33 RMB/ ton, with an increase of 6.31% in the week and 5.95% in comparison with the same period last year.
There were many positive factors in the week. First of all, in terms of cost of methanol, the market of methanol continued to rise this week, and the rise of raw materials obviously brought obvious support to DME. Some methanol manufacturers have increased the ex-factory quotation by 50-80 RMB/ ton.
Secondly, the trend of LPG civil market improved, and the overall stop falling and upward trend brought a certain boost to the DME market. During the week, international crude oil continued to rise, the news side was good for the market mentality. The price rise in South China is more obvious, and the Shandong market is mainly down and then rising.
In the cost of methanol and LPG civil market both higher support, DME prices continued to rise. In addition, the terminal demand has improved compared with the earlier stage, and the downstream market entry atmosphere is more positive. Under the buying up mentality, the market is mainly replenished, and the market transaction atmosphere is good. In terms of supply, the operating rate of domestic DME market this week has decreased compared with that of last week, and the current inventory of manufacturers is at a low level.
Overall, the cost of methanol is high, the price of crude oil is rising, the trend of LPG is improving, and there are still some favorable factors in the market. In addition, manufacturers have no pressure on inventory, and their mentality is mainly firm. And affected by seasonal factors, the current winter weather is relatively cold, the terminal still needs to purchase. Generally speaking, the end of the year is approaching, and the DME market is expected to end in 2020 with a rise.
