During the Spring Festival in February, the overall trend of dimethyl ether Market before and after the festival is not optimistic, and the whole month market is mainly weak, which is one of the few declining products in the energy sector in February. According to the data monitoring of the business association, the average price of dimethyl ether in Henan market was 3446.67 yuan / ton on February 1, and 3156.67 yuan / ton on February 25, with an overall decline of 8.41% in February. As of February 25, the domestic market prices of dimethyl ether are as follows:

Region specification Date Quotation

Mass fraction of dimethyl ether in Shandong Province: ≥ 99.0% February 25th 3080 yuan / ton

The mass fraction of dimethyl ether in Hebei area: ≥ 99.0% on February 25th 3100 yuan / ton

Mass fraction of DME in Henan area: ≥ 99.0% February 25th 3050-3170 yuan / ton

Looking back on the market of dimethyl ether in February, the main production area of dimethyl ether in Henan continued the rising trend of last month at the beginning of the month, and the price only rose steadily on the 1st. During the period, the ex factory price of civil gas was continuously raised, which brought certain benefits to the market. In addition, the demand for storage and replenishment in the downstream before the festival, the enthusiasm for entering the market was good, the manufacturers’ shipment was smooth, and the price was relatively strong. However, because the manufacturers also had the demand for storage and inventory before the festival, the increase was extremely limited. Then, from February 2, dimethyl ether began to fall. Although the international crude oil continued to rise and the news was favorable to the market mentality, the civil LPG market was limited and did not follow the rising market, which mainly affected the dimethyl ether market mentality. And with the end of pre Festival replenishment in the downstream, the market transaction atmosphere is significantly weaker than that in the early stage. Before the festival, the manufacturer’s shipment is not smooth, and the decline range is different, so they adjust according to their own situation.

After the festival, dimethyl ether Market did not rebound, but widened the decline. Although the international crude oil continued to rise after the festival, and the LPG market was greatly pulled up by this good news, the dimethyl ether Market did not follow the rise, and the overall trend was still weak. On February 21, the dimethyl ether Market showed a significant decline. The factory price of all regions was significantly reduced. Some enterprises lowered the factory price twice on the same day. Taking Henan xinlianxin as an example, the quotation of xinlianxin dimethyl ether was 3340 yuan / ton on February 21 and 3100 yuan / ton on February 25, with a significant drop of 240 yuan / ton in just a few days. The main reason for the decline is that the terminal demand is not good, and the downstream is not able to cope with it. After the festival, only a small part of the market replenishment operation, but the overall shipment of the manufacturers is still not smooth, the inventory is gradually increasing, and the pressure is greater, so they are forced to reduce the factory price substantially continuously, and the profit is given priority to the shipment.

In terms of methanol cost, methanol was first suppressed and then increased in February. Affected by the logistics before the festival, transportation vehicles are in short supply, which is not conducive to the circulation of methanol goods, and the market is difficult to change. After the festival, the domestic methanol market has warmed up. Downstream enterprises need to store and replenish after the festival, and enter the market for replenishment in an appropriate amount. In addition, the logistics recovery and the reduction of freight cost make the methanol market warm up to a certain extent. However, the methanol market as a whole fell in February, and the weak cost brought limited support to the dimethyl ether Market.

On the whole, at the end of February, the cost of methanol and liquefied gas markets both recovered, but the increase rate was small, which brought limited support to the dimethyl ether Market. Near the end of the month, the price of CP will be released in March, which is expected to rise. The civil LPG market is expected to rise, which may bring a certain boost to the dimethyl ether Market. However, due to the impact of demand, the downstream industry is cautious and less motivated to enter the market. The manufacturers are under great inventory pressure and the market is very limited. Dimethyl ether Market is expected to be mainly volatile in March, and the overall trend may still be weak.