In July, the DME market rose as a whole, is it no longer weak?

In July, the DME market hit the bottom and rebounded, ushering in a rising situation. According to the data monitoring of business agency, the average price of dimethyl ether in Henan market on July 1 was 2193.33 yuan / ton, and that on July 31 was 2366.67 yuan / ton. During the period, the average price increased by 7.90%, and the maximum earthquake amplitude was 12.46%, which was 26.27% lower than that of the same period last year.

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Regional specification: July 1 to July 31

The mass fraction of dimethyl ether in Henan Province: ≥ 99.0% 2110-2180 yuan / ton to 2330-2380 yuan / ton

The mass fraction of dimethyl ether in Hebei Province: ≥ 99.0% 2300 yuan / ton 2375 yuan / ton

Mass fraction of dimethyl ether in Shandong area: ≥ 99.0% 2300 yuan / ton to 2330 yuan / ton

At the beginning of July, the trading atmosphere of DME market was relatively stable, and the increase was not obvious. Due to the persistent downturn of DME market this year, the price has been at a low level, most enterprises are facing a loss situation, some enterprises are forced to overhaul or low load production, some enterprises are limited in sales. In July, Henan as the main DME production area, production and sales were basically balanced, most enterprises did not have obvious inventory pressure, the mentality was relatively firm, and the price was stable at the beginning of the month.

 

In mid July, the LPG civil market continued to rise, which was beneficial to the market mentality. Under the downstream buying and rising mentality, the enthusiasm of entering the market was improved, and the market transaction atmosphere became better. Henan took the lead in the rise, and the prices of mainstream enterprises continued to rise. Take xinlianxin as an example, from July 6 to 17, xinlianxin raised 10-20 yuan / ton every day, from 2220 yuan / ton before to 2430 yuan / ton, and increased 210 yuan / ton during the period. The overall situation of the market remained active, and then the upward trend spread. Prices in other regions followed the rise, but the activity was not as active as that in Henan, so the increase Compared with Henan Province, there is a gap. During this period, the operating rate of DME market was still less than 15%.

 

Until the end of July, the market price became loose, the rise of dimethyl ether was suspended, and it entered the downward channel again. Due to the influence of seasonal factors, the current hot weather, the market terminal demand is relatively limited, the price rose too fast in early July, with the end of a new round of downstream replenishment, the mentality of resistance to high prices, have withdrawn from the market to wait and see, consumption of inventory, the atmosphere of market transactions has changed. Moreover, the weak decline of international crude oil has a negative impact on the market, and the strong situation of the civil gas market is not there. On the 27th, the ex factory prices of many regions were lowered, and dimethyl ether was finally affected by this decline. Take Henan xinlianxin as an example, the price was stable for two consecutive days from 25 to 26, until the price was reduced by 20 yuan / ton on the 27th, and then the price was adjusted again. From 27 to 28, the minimum guarantee policy was implemented, which protected the market price and prevented the low price from disturbing the market. Henan Province is mainly down regulated slightly, while there is no obvious change in Hebei and Shandong areas, and the quotation is stable.

 

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In July, the civil LPG market showed an upward trend as a whole. During the month, the maintenance of some units in some refineries led to a decrease in the supply in the area. The downstream bullish mentality led to the active entry into the market. The manufacturers delivered goods smoothly, the inventory maintained a medium low level, and the price continued to rise. The rise in domestic gas was one of the main reasons for dimethyl ether’s rebound in July.

 

In terms of cost, the methanol market continued to fluctuate in July. Although the market in the first ten days went up slightly, the market in the last ten days dropped rapidly and the previous low level. In the first ten days, affected by the centralized maintenance of methanol plant and low port inventory, the methanol market rebounded, and Inner Mongolia and other places rebounded to around 1450 yuan / ton. In the late ten days, with the recovery of methanol plants, the postponement of the start-up of olefin units in Luxi, Shandong Province, and the temporary shutdown of srbon, the market mentality turned weak and the price dropped rapidly. The weak cost has limited support for the DME market.

 

By the end of July, the domestic DME operating rate was about 11%, which was lower than that in June. In terms of demand, affected by seasonal factors, terminal demand needs to be improved. With the completion of replenishment in the downstream, delisting mainly consumes inventory, and the market transaction atmosphere turns lighter than that in the earlier stage, and returns to rationality at the end of the month, and then turns to the downward channel again. Although the price of domestic gas still rose slightly at the end of the month, it did not boost the DME market. Looking at the future market, the current market for dimethyl ether has limited advantages, and the rebound is hindered. It is still difficult to raise the price in August, or it is mainly stable in a large area.

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