In March, the domestic DME market continued its downward trend, and the Henan market stepped down. According to data monitoring by SunSirs, the average market price of DME in Henan was 4,320 RMB/ton on March 1, and 4,120 RMB/ton on March 28. The monthly decline was 4.63%, and down 2.75% compared to the same period last year.
Analysis review
In March, the overall trend of the DME market was difficult to say optimistic, with the market price center moving downward and the price inversion serious. At the beginning of this month, due to the relatively strong market for raw material methanol and strengthened cost support, the price of DME increased slightly several times, with a range of 10-20 RMB/ton. Subsequently, the market was accompanied by a decline in raw material prices, cost support weakened, and at the same time, the market for related product liquefied gas declined significantly. The pressure on on-site inventory had increased, factories gave up profits to sell goods and some factories had plans to reduce their loads. Downstream demand continued to be sluggish, and led by negative factors, the market for DME was difficult to improve.
Market outlook
Overall, the raw material methanol remained weak, the inventory of DME manufacturers remained high, and there was no sign of improvement in market demand. The supply of DME in the future is expected to decrease, and it is expected that the market of DME in the future will operate in a weak and volatile manner in the short term.
