Thread Content
Dimethyl ether currently costs 6,800 yuan per ton, but as production facilities with a capacity of millions of tons come online, the ex-factory price of dimethyl ether is expected to drop to around 2,000 yuan per ton. This would result in lower profits, so why go ahead with such projects? Can someone explain it? Thank you
The rule of a market economy is that rarity makes things valuable. At present, the production volume of dimethyl ether is low, and it can be purchased for 6,800 yuan. If there is an oversupply in the market, prices drop. However, the gentlemen who conduct feasibility studies usually make calculations based on the current situation, using a static calculation method. They are unwilling to predict the future, so they tell Party A that money can be made. If a ‘feasibility study’ concludes that it is not feasible, the client will not fund it. The conclusions of feasibility studies are all feasible! It’s for approval!
What was said on the 2nd floor is correct. When dimethyl ether replaces LPG, its price will fluctuate in line with the price of LPG. A price of 2000 is too low; it should be at least 80% of the LPG price.
Ultimately, the price of dimethyl ether should return to a rational level. 2000 is definitely too low, but it won’t stay high all the time either
Another thing to consider is whether his downstream industries are also experiencing such rapid development! If it’s a flower similar to this one, I guess the price fluctuations won’t be very significant! If manufacturers that use dimethyl ether as a raw material also expand their production on a large scale, then the impact on prices won’t be great either!
If 1.4 tons of dimethyl ether can replace one ton of diesel, and the current price of diesel is around 6,000 yuan per ton, then the cost equivalent to that amount of diesel using dimethyl ether would be over 4,200 yuan. This is just a static estimate; 2,000 yuan per ton is definitely too low
6800 is the price in South China; in Hebei it’s just a little over 4000. At the current price of methanol, this amount covers only the costs, so there’s no way to make huge profits.
The price of dimethyl ether fluctuates with the price of liquefied gas; 2000 is too low – it has never been this low before. The price we charge is more than twice that amount. The development of downstream products for dimethyl ether is also progressing rapidly.
First of all, regardless of whether it’s a plant with a production capacity of millions or tens of millions of tons, the price of dimethyl ether will never drop below its cost. It takes about 1.4 tons of methanol to produce 1 ton of dimethyl ether; therefore, it’s unlikely that the price of dimethyl ether will reach 2,000 yuan per ton. Market supply and demand influence prices, and prices in turn affect market supply and demand. Ultimately, a balance is achieved. This is the basic law of a market economy. It is undeniable that there are currently quite a number of dimethyl ether projects, and most of these projects were established based on expectations regarding future market demand; they represent a form of proactive preparation. As for whether dimethyl ether truly has a promising future, no judgment can be made at this point, as this is not determined by subjective wishes but rather by whether it is possible to establish a new market balance.
If the ex-factory price of methylene dimoxide production plants with a capacity of millions of tons can be reduced to around 2,000 yuan per ton, then a price range of 4,000–6,800 yuan would merely mean an increased profit margin; the final price should be determined by supply and demand as well as the target market
**As long as the national standard for the dimethyl ether content in liquefied petroleum gas is not released, the development of dimethyl ether remains uncertain. The advantage of dimethyl ether is that it can be mixed into liquefied petroleum gas to reduce the cost of gas.
The profit for dimethyl ether is determined mainly by its price, which ranges from methanol price multiplied by 1.4 to LPG price multiplied by 0.7.