Power rationing in various regions has led to a decline in the operating rate of dimethyl ether production
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Since the beginning of this year, the stringent policies on energy conservation and emission reduction implemented in various regions have had a significant impact on the domestic dimethyl ether market. Not only are dimethyl ether manufacturers subject to power restrictions, but some companies also reduce their production due to the impact of energy conservation and emission reduction policies on their methanol products, which in turn leads to shortages in raw material supply. It is understood that the areas most affected by dimethyl ether production at present are mainly located in Hubei, Shanxi, Jiangsu, Zhejiang and other places. As of the end of August, the operating rate of key dimethyl ether production enterprises in Hubei was only around 8.4% ； Key manufacturing enterprises in Shanxi are completely shut down.
Are dimethyl ether manufacturers high-power-consuming enterprises? ?
It seems to have little to do with power restrictions; please see the analysis. Zhou Cuiping, an analyst at China Chemical Network, says that there has been a severe oversupply of dimethyl ether in China. By the end of this year, the country’s dimethyl ether production capacity will reach 14.84 million tons, while the operating rate of dimethyl ether production facilities this year is only around 20%–30%. Over 90% of dimethyl ether is used for blending with liquefied gas, and currently, liquefied gas cylinders are used in the market to mix with dimethyl ether. If blending is prohibited, it will become even more difficult for dimethyl ether companies to survive.
I’m not clear about the power rationing policies in different areas. But generally, dimethyl ether plants are not isolated; they are located in the same facility as methanol plants, and even further upstream, back to the sources of methanol – such as fertilizer and coking industries. Power rationing orders can’t be that specific as to restrict power use for a particular device in a certain factory of a certain company. Moreover, if the profits are substantial, companies have ways to manage their internal electricity usage in order to produce products that maximize profits. It can be inferred that the underutilization of dimethyl ether is due to two main factors: the market conditions and profits.