Price Trend

The domestic dimethyl ether market rose steadily in July. At the beginning of the month, the average domestic dimethyl ether market price was 3095 yuan/ton, and at the end of the month, the average price was 3210 yuan/ton. The increase in the month was 3.72%, and the price fell by 30.29% compared with the same period last year.

II. Market Analysis

Product: In July, the market of dimethyl ether was stable before rising. The atmosphere of market transaction is general. As of July 31, the parking of Hebei Yutai dimethyl ether plant was not quoted for the time being, Henan Lankao Huitong Chemical Co., Ltd. was not quoted for the low level of dimethyl ether inventory, Henan Yima Xinyuan dimethyl ether plant failure was not quoted for the time being, Qinyang Shengxin Biotechnology Co., Ltd. was quoted for 3070 yuan/ton of dimethyl ether, Hebei Jichun Chemical Co., Ltd. The ex-factory price of methyl ether is 3220 yuan/ton, the ex-factory price of dimethyl ether of Shandong Dezhou Shengdeyuan Company is 3100 yuan/ton, and the ex-factory price of dimethyl ether of Shanxi Orchid Science and Technology Venture Co., Ltd is 3000 yuan/ton.

Industry chain: In July, the domestic methanol market continued to decline. At the beginning of the month, the price of methanol was 2178 yuan/ton, and at the end of the month, the price of methanol was 1974 yuan/ton. The price fell 9.36% in the month, 28.5% compared with the same period last year. In July, the domestic liquefied petroleum gas (Shandong) market suffered from twists and turns, and the overall decline was dominant. At the beginning of the month, the average price of domestic liquefied gas market was 3816.67 yuan/ton, and at the end of the month, it was 3716.67 yuan/ton. The price fell by 2.62% in the month, 13.58% compared with the same period last year.

In the first half of July, the market trend of dimethyl ether was weak, and the horizontal adjustment was dominant. The methanol market has fallen continuously, and the cost support is insufficient. In addition, the market is in the off-season, the terminal demand is slow, and the downstream supply is on demand, so the enthusiasm of entering the market is not high. However, the rise of crude oil and liquefied petroleum gas has supported the market to a certain extent. Most manufacturers adjust their prices narrowly according to the shipment situation. Until July 19, an explosion and ignition accident occurred in the C-set air separation unit of Yima Gasification Plant, Henan Gas (Group) Co., Ltd. The explosion did not involve major dangerous source tank areas, and the production units had been shut down. The overall inadequate start-up has an impact on the dimethyl ether market. There is a supply imbalance in the market and prices have risen sharply. However, with the driving of Shengxin dimethyl ether, supply pressure has been alleviated, the market trend of cost methanol and liquefied gas is weak, terminal demand is sluggish, prices rise and fall, and the market gradually returns to rationality.

Industry: According to the price monitoring of business associations, in June 2019, there were four kinds of commodities rising annually in the energy sector, one of which rose more than 5%, accounting for 6.3% of the monitored commodities in the sector; the top three commodities were WTI crude oil (5.02%), MTBE (2.46%) and coking coal (0.82%). There are 12 kinds of commodities with a decline of more than 5%, accounting for 31.3% of the monitored commodities in the plate. The products with the first three declines are petroleum coke (-8.44%), liquefied natural gas (-7.64%) and naphtha (-7.09%). This month’s average rise and fall was -3.07%.

3. Future Market Forecast

Dimethyl ether business analysts believe that: at present in the off-season, the market demand is insufficient. The trend of cost methanol and liquefied petroleum gas is weak and bearish market mentality. Lower market entry enthusiasm is not high, more on-demand procurement, manufacturers shipment situation is general. It is expected that the narrow adjustment of dimethyl ether market will be dominant in August.