Price Trend

The domestic dimethyl ether market rose as a whole in January. At the beginning of the month, the average domestic dimethyl ether market price was 3220 yuan/ton, and at the end of the month, the average price was 3406.67 yuan/ton. The increase rate was 5.8% in the month, and the price fell 22.8% compared with the same period last year.

II. Market Analysis

Product: The market of dimethyl ether rose in January as a whole. The market climate has changed from weak to strong. Hebei Yutai, Qinyang Shengxin, Henan Lankao Huitong, and other manufacturers do not quote parking prices at present, the overall market start-up rate slipped last month. As of January 31, the ex-factory price of Henan Yima Xinyuan dimethyl ether was 3480 yuan/ton, Hebei Jichun Chemical Co., Ltd. was 3700 yuan/ton, Shandong Dezhou Shengdeyuan Co., Ltd. was 3700 yuan/ton, and Shanxi Orchid Science and Technology Venture Co., Ltd. was 3420 yuan/ton.

In the aspect of industry chain, the trend of domestic methanol market differentiation is obvious in January. At the beginning of the month, the price of methanol was 2188 yuan/ton, and at the end of the month, the price of methanol was 2212 yuan/ton. The price of methanol rose by 1.10% in the month, which was 30.95% lower than that of the same period last year. In January, domestic liquefied gas market prices rose first and then fell. At the beginning of the month, the average price of domestic liquefied gas market was 3900 yuan/ton, and at the end of the month it was 3900 yuan/ton, which was the same as that at the beginning of the month. The price was 12.85% lower than that of the same period last year.

At the beginning of this month, the liquefied petroleum gas market rose sharply, resulting in a continuous upward trend in market prices. In January, the domestic dimethyl ether Market was weaker and lower. With the resumption of production in early New Year’s Day, the supply of domestic dimethyl ether Market increased sharply. The end-users and downstream users mainly purchased on demand, the overall contradiction between supply and demand in the market was tense, and the warehouse pressure of most enterprises was on the high side. At the end of the month, with the approaching of the Spring Festival holiday, the number of end-user purchases increased sharply, but most manufacturers have no inventory, the market supply has been reduced, the trading atmosphere is booming, and the Pre-Inventory of some manufacturers has been released substantially, which promotes the overall price of the market to rise broadly.

Industry: According to the price monitoring of business associations, there are 10 kinds of commodities rising annually in the energy sector in the list of commodity prices rising and falling in January 2019, among which 4 kinds of commodities increased by more than 5%, accounting for 25% of the monitored commodities in the sector; the top three commodities are WTI crude oil (19.42%), Brent crude oil (14.59%) and MTBE (industrial grade) (6.69%). There are five kinds of commodities falling in the ring ratio, three of which fall more than 5%, accounting for 18.8% of the monitored commodities in the plate. The products of the first three declines are liquefied natural gas (-29.81%), petroleum coke (-9.97%) and coke (-5.12%). This month’s average rise and fall was 0.77%.

3. Future Market Forecast

Dimethyl ether business analysts believe that: the Spring Festival is approaching, with downstream users delisting, the dimethyl ether Market is expected to be weak in the short term consolidation trend.