DME Market Continued to Rise in Early September

In September, the domestic market price of dimethyl ether continued to rise, and the Henan market continued to rise, with a significant range. According to data monitoring, the average price of dimethyl ether in Henan market was 3990.00 CNY/ton on August 29, and the average price on September 5 was 4160 CNY/ton, with an increase of 4.26% during the week, and an increase of 17.43% compared with the same period last year.

This week, the domestic dimethyl ether market is obviously favorable, and the price is firm and rises. Affected by social public health incidents recently, road transportation in individual areas has been blocked, some manufacturers have parked their installations, and the market supply has continued to decrease. This has boosted the manufacturers' mentality and continuously reported high prices. In addition, the market price of raw material methanol rose mainly during the week, and the market price of related products civil gas also fluctuated higher, which brought certain benefits. The downstream made up on demand, and the market trading atmosphere was mild.

On September 5, the prices of enterprises in southern Shandong were concentrated around 2,630-2,650 CNY/ton, and some local prices in Linyi were around 2,700 CNY/ton. The ex-factory quotation of enterprises in central and eastern Shandong is around 2680-2700 CNY/ton. The methanol market in the two lakes areas has risen, and some enterprises in Hubei have referenced about 2505-2600 CNY/ton for mainstream negotiation; some traders in Hunan offer about 2700-2710 CNY/ton.

At present, the raw material methanol market is mainly rising, which brings certain support in terms of cost. As of September 1, the international crude oil futures fell sharply for three consecutive trading days, and the liquefied gas civil market of related products continued to rise weakly due to this impact, and the price weakened slightly. However, the support brought by the low supply in the Henan market is obvious, and the mentality of the manufacturers is relatively strong. It is expected that the dimethyl ether market may be strong.