Dimethyl ether price   

In the previous article, the development trend of dimethyl ether price was pointed out, and the factors affecting the price of dimethyl ether were briefly analyzed.

1. The impact of raw material prices. The core raw material for the production of dimethyl ether is methanol, and in China, methanol is produced in a variety of ways, including coke oven gas method, natural gas method and coal method. At present, the coal method is dominant, so the price fluctuation of the coal market has a significant impact on the cost of methanol, which in turn indirectly acts on the production cost of dimethyl ether. For example, when the price of coal plummets, the cost of methanol decreases and the price also shows a downward trend. However, it is worth noting that the relatively high cost of methanol produced from natural gas has led to a significant decline in the overall operating rate of methanol as the price of natural gas for non-residential use has remained unchanged. At the end of 2014, methanol prices hit their lowest point since the financial crisis, but then rebounded rapidly in 2015, a trend that was evident in the dimethyl ether market, with its selling prices climbing and the price of dimethyl ether rising.

2. The main application areas of dimethyl ether are concentrated in liquefied petroleum gas stations and fine chemical plants. LPG stations tend to mix dimethyl ether with liquefied gas, which accounts for about 90% of the market share; Fine chemical plants use dimethyl ether as a solvent and propellant, accounting for about 10% of the market share. The price of liquefied petroleum gas is greatly affected by fluctuations in crude oil prices, and propylbutane, which is commonly used in fine chemical plants, is also derived from the petroleum refining process. As a result, the downstream demand for dimethyl ether is largely dependent on the price differential between it and its alternatives, and when the price of oil is low, the price of related refining products also decreases, which undoubtedly limits the growth potential of dimethyl ether demand.

3. Inventory impact. The production model of different companies leads to differences in inventory management strategies. Some industry players have adopted a sales-based production strategy to keep inventory levels low. However, when the inventory accumulates, in order to alleviate the financial pressure, some companies will first reduce the price of promotion. Due to the lack of an effective information sharing mechanism in the industry, even if other companies are not under much pressure, they often choose to follow the price reduction in order to maintain customer relationships. Far from effectively relieving the pressure on individual companies, this chain reaction has led to a sharp decline in the price level of the entire industry, and some companies have even had to choose to stop production. With the change of the market environment, dimethyl ether enterprises should continue to adjust the price, dimethyl ether has entered the end of growth, because the demand has tended to be saturated, so the magnitude and frequency of price adjustment are larger.

Dimethyl ether price is affected by many factors, and it is not something that can be determined by a single company, but in the long run, working with a company that adheres to the market-oriented approach and truly seeks benefits for customers will save a lot of energy and reduce production costs.

Jiurunfa Chemical Technology Co., Ltd. is committed to allowing customers to buy the best products at the most preferential price, and truly achieve win-win cooperation, the company's products are exported to dozens of countries and regions such as North and South America, Europe, Asia, Australia, South Africa, etc., and enjoy a high reputation and popularity in the international arena. If you have related needs, or want to know more about dimethyl ether, please contact us, we look forward to sincere cooperation with you, mutual benefit and create brilliance together!

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