The Cost Support is Obvious, China DME Market Fluctuated and Rose in September
September 29, 2022
In September, the domestic DME market price was relatively firm, and the Henan market was in a volatile upward trend. According to the data monitoring of SunSirs, the average price of DME in Henan market was 4,050 RMB/ ton on September 1, and 4,190 RMB/ ton on September 27. The monthly increase was 3.46%, down 13.60% compared with the same period last year.
In September, the domestic DME market trend was relatively strong, while the trend of Henan's DME market was volatile, with the focus moving upward, dominated by favorable factors in the month. In terms of cost, the raw material methanol market rose in September, with an increase rate of 12.34% by the end of September 27, bringing obvious support to the market. In terms of demand, in the middle of September, when the Mid Autumn Festival holiday came back, the downstream started the replenishment mode, and the enthusiasm for entering the market was good. The manufacturers had a firm mentality, and prices continued to rise. In addition, near the end of the month, the price of DME rose again due to the good news of the National Day holiday. Shandong and Hebei market prices are mostly adjusted according to their own conditions, while Jiangxi market is mainly stable, with no significant fluctuations temporarily.
According to the monitoring data of SunSirs, the average price of East China ports in the domestic methanol market rose from 2,710 RMB/ ton to 2,840 RMB/ ton from September 20 to 27. During the cycle, the price rose by 4.80%, 10.56% month on month and 19.15% year on year. The domestic methanol market in East China is surging, and some traders have no offer. Although the international crude oil fluctuates downward, the coal price is firm, the raw materials support the methanol market, and there is a strong intention to stock up downstream before the festival. There is a slight difference between regions. Some regions are short of supply and have strong demand. Some regions have sufficient supply and general demand. The trend of the methanol market is slightly different between regions.
At present, the market price of raw material methanol is firm, and the cost brings obvious support. The civil market of liquefied gas related products is mainly weak, affecting the market mentality. However, with the coming of the National Day Holiday, there is a certain demand for replenishment in the downstream before the festival, and the market trading atmosphere is mild. Most of the manufacturer's inventory is under control, and the mentality of price fixing is obvious. It is expected that China DME market may still rise slightly in the short term.