In May, the domestic dimethyl ether market continued its rise in April and continued to be the main market. After the May Day holiday, the market of dimethyl ether in Henan Province is getting better and the center of gravity is moving up. According to the data of SunSirs, the average price of DME in Henan market was 3185.00 RMB/ton on May 6, while the average price on May 13 was 3727.50 RMB/ton, up 7.73% during the period, up 17.03% from April 1. As of May 13, the market prices of DME in various regions are as follows:
After the May Day holiday, the price of dimethyl ether in the domestic market continued to rise and could not stop. Taking Henan xinlianxin as an example, the ex factory quotation of Henan xinlianxin dimethyl ether was 3450 RMB/ton on May 6, and 3830 RMB/ton on May 14. The price was increased every day, with an overall increase of 380 RMB/ton. Other manufacturers have also increased mainly, dimethyl ether quotation center up.
Looking at the reasons for this rise, there are mainly the following points. The most obvious one is the raw material methanol market. The recent rise in coal prices has led to a sharp rise in methanol. Methanol futures and spot go up hand in hand, bringing obvious benefits to the dimethyl ether market. The second is the market supply. At present, most manufacturers are in a state of maintenance, and the market supply is reduced, which brings some support to the dimethyl ether market. Finally, in terms of demand, after the festival, there is a certain demand for replenishment downstream, which mainly focuses on replenishment in the market, and the market is more favorable. Under the mentality of buying up but not buying down the downstream, it is more active to enter the market, the market supply exceeds demand, and the price rises continuously.
In the cost methanol market, the strong coal market on the cost side strongly drives the expectation of the methanol futures market. At the same time, the macro side is good, and the methanol futures market is still bullish for a short time under the background of product fundamental preference. At the same time, the methanol spot market rose slowly, according to the monitoring of the SunSirs, as of May 12, the average price of domestic methanol producers in Shandong was 2625 RMB/ton, with a month-on-month increase of 11.68% and a year-on-year increase of 23.32%. In terms of the methanol spot market, the new prices of production enterprises in the main production areas of Northwest China were significantly increased to drive the market, while the production enterprises in the inland areas were gradually rising. At present, the social inventory of the methanol market is fair, and the price of downstream products is up and down. Most enterprises purchase on demand.
At present, the raw material methanol market is still rising, which brings obvious benefits to the market. However, the trend of the civil LPG market is relatively weak, with a partial downward trend, which has a certain constraint on the rise of dimethyl ether. In the later stage, as the weather heats up, the downstream demand is expected to weaken, bringing bad news to the market. In the short term, the market supply is low, the manufacturers' inventory is on the low side, and the market price of dimethyl ether is mainly firm, which is expected to reach the 4000 RMB/ton mark. But in the long run, the dimethyl ether market is likely to fall.
