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【Dimethyl ether】Market review of dimethyl ether in the domestic market this week (12.17-12.21)

2007-12-24View Original

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This week, the dimethyl ether market continued to experience weak demand; shipments were poor due to the downward trend in the liquefied gas market. Meanwhile, the price of methanol declined steadily over the course of the week, and the reduced cost pressure allowed for a drop in the price of dimethyl ether. The average price decline over the week was between 300 and 500 yuan per ton. The low prices failed to stimulate end-user consumption as expected; instead, they increased the sense of hesitation among consumers. Manufacturers faced difficulties in selling their products, and inventory levels rose. Under such pressure, dimethyl ether is likely to continue its downward trend over the weekend.   Within Shandong region, Hengrui has continued to delay operations, with resource levels remaining largely stable. At the beginning of the week, Jiu Tai saw its prices as being too high; in order to facilitate a smooth distribution of resources, it significantly reduced its quotes early in the week. After a drop of 500 yuan per ton in just two days, it decided to maintain stable prices for its sales. Within the Dongming area, sales of dimethyl ether have been sluggish, with prices dropping daily; the decline over a week reached 500 yuan per ton.   The situation in Hebei district is relatively good this week. As the Kaioh had three inspection days this week, the available resources in the region dropped sharply, which helped to keep shipments stable across various companies; inventory levels increased slowly. Despite significant declines in prices in the surrounding areas, it was possible to maintain stability until Thursday. Over the weekend, sales of Ka Yue resumed at a higher volume, and under strong pressure, it caused prices among local manufacturers to drop as well, with a decline of 100–200 yuan per ton over the course of the week.   Overall shipments in the Henan region were poor, leading to a significant drop in quotes over the week. In Anyang and Yima, low volumes of sales helped to keep prices stable for a week; however, sales of Xin Hong and Jin Ding were sluggish, with prices dropping daily. The price of Jin Ding dropped by 300 yuan per ton in just one day over the weekend. It is reported that the sales situation has not improved significantly, so a further decline in prices is possible in the short term.   Along the riverbanks and in the eastern, southern parts of China, weak demand has led to difficulties in shipping goods; as a result, manufacturers have successively lowered their prices, with a decrease of 200–400 yuan per ton per week. Looking at this week’s quotes, most companies have stabilized after experiencing declines; however, the apparent calm cannot hide the turbulent undercurrents, and the daily drop in settlement prices adds further concern to the market.   Located in a remote area, the western region faces difficulties in shipping goods; as a result, manufacturers are forced to lower their prices continuously, with a drop of 400–500 yuan per ton in just one week. The price adjustment in Inner Mongolia Tianhe is relatively small; it is reported that significant discounts are available on transactions.   This week, methanol prices declined steadily throughout the week, driven by weak demand from downstream industries and falling prices in international markets. From the beginning of this month to the end of this weekend, the main decline has been around 1,000. The decline in methanol prices also provides room for a reduction in the pricing of dimethyl ether.   This week, in terms of liquefied gas, prices in the domestic market have entered a downward trend once again since last weekend, with an average decline of around 200 yuan. Although refineries in the region have tried to alleviate market pessimism through tentative joint price stabilization, planned maintenance in certain areas, or by avoiding the impact of gas flowing from the north to the south, the results have been modest. Starting from the middle of the week, heavy fog occurred in North China and along the river valleys, severely hindering the transport of goods by road to the south. The market stabilized temporarily over the weekend. Moreover, given the differences in the quality of the gas, domestic transactions remain chaotic, so the short-term outlook remains unfavorable.   As winter sets in, demand for dimethyl ether drops significantly, while domestic production capacity continues to expand rapidly. All companies have also suffered heavy losses in the battle to retain market share. Although dimethyl ether holds promising prospects as an alternative energy source, at present it functions merely as an additive mixed with liquefied gas, lacking its own separate market segment; the limited market size hinders its rapid development. Its slow progress often fills industry professionals with a sense of sadness and sorrow. The price adjustment for methanol has largely been completed, with limited room for further decline. Liquefied gas is unlikely to see any improvement in the short term. Dimethyl ether, which operates in a difficult situation, is about to face another increase in costs, and there may be new changes in its available resources. Prices will continue to move in line with the fluctuations in liquefied gas prices.

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