On the prospects of the DMC market
Thread Content
Dear sea friends, what is the current market situation for DMC?
Propylene oxide, the raw material, is likely to remain in a range of narrow fluctuations in the short term; dimethyl ester manufacturers are currently operating at a loss. However, given the weak situation of propylene glycol in the short term, this provides some support for dimethyl ester prices. Demand in the downstream and end-user sectors remains weak, with purchasing continuing to be cautious. The related product, ethyl acetate, remains at high levels. In summary, with a stalemate between buyers and sellers, prices of dimethyl ester are likely to remain low in the short term; however, due to supply and demand constraints, significant fluctuations in market prices are unlikely.
The market demand rate for DMC has shown an average annual growth rate of 50–80% since 1993, indicating huge potential market demand. Currently, DMC’s domestic production capacity is around 300,000 tons, which is mainly used for export; in 2008, approximately 120,000 tons were exported.
Reply to 3# quanquan313: Where did the person above get the information that 120,000 tons were exported in 2008? Not even 12,000 tons.
Reply to 5# hldj1964: Is the discontinuation of production due to raw material issues or problems in the product market?
Reply to 6# quanquan313: One reason is equipment maintenance, and the other is that the market is not doing well.
It’s not a raw material issue; it’s a market issue.