Dimethyl Ether Price: Key Factors Influencing Market Trends
The previous article outlined the development trend of dimethyl ether prices and briefly analyzed the main factors affecting price fluctuations. This article further elaborates on the key elements that influence dimethyl ether pricing in the market.
1. Impact of Raw Material Prices
The core raw material for dimethyl ether production is methanol. In China, methanol is produced through multiple pathways, including coke oven gas, natural gas, and coal-based processes. Currently, coal-based production dominates the market, making coal price fluctuations a critical factor affecting methanol costs and, consequently, dimethyl ether production costs.
For example, when coal prices decline sharply, methanol production costs decrease accordingly, leading to a downward trend in methanol prices. However, it is worth noting that non-residential natural gas prices remain relatively stable at higher levels. As a result, methanol produced via natural gas routes faces higher costs, leading to a significant reduction in overall methanol operating rates.
At the end of 2014, methanol prices reached their lowest level since the global financial crisis. In 2015, prices rebounded rapidly, a trend that was clearly reflected in the dimethyl ether market, where selling prices increased accordingly.
2. Influence of Downstream Demand and Substitute Products
The main application sectors of dimethyl ether are liquefied petroleum gas (LPG) stations and fine chemical plants. LPG stations typically blend dimethyl ether with liquefied gas, accounting for approximately 90% of total market demand, while fine chemical plants use dimethyl ether as a solvent, propellant, and intermediate, representing about 10% of demand.
LPG prices are strongly influenced by crude oil price fluctuations. Similarly, propane and butane—commonly used in fine chemical applications—are derived from petroleum refining processes. Therefore, downstream demand for dimethyl ether is highly sensitive to the price spread between dimethyl ether and its substitutes.
When crude oil prices remain low, the prices of related refining products also decline, limiting the growth potential of dimethyl ether demand.
3. Impact of Inventory Levels
Differences in production and sales strategies lead to varying inventory management approaches among manufacturers. Some companies adopt a “produce-to-order” model, maintaining relatively low inventory levels. However, when inventories accumulate, certain producers may reduce prices to accelerate sales and ease cash flow pressure.
Due to the lack of effective information-sharing mechanisms within the industry, even companies not facing immediate inventory pressure may follow price reductions to retain customers. This chain reaction often results in a sharp decline in overall market prices, forcing some producers to reduce output or suspend production.
As market conditions continue to evolve, dimethyl ether producers must frequently adjust pricing strategies. At present, the dimethyl ether market is approaching a late-stage growth phase, with demand nearing saturation. Consequently, price adjustments tend to occur more frequently and with greater amplitude.
Conclusion
Dimethyl ether pricing is influenced by multiple interconnected factors and cannot be determined by any single company alone. In the long run, partnering with a supplier that is truly market-oriented and customer-focused can significantly reduce operational complexity and overall production costs.
Jiurunfa Chemical Technology Co., Ltd. is committed to enabling customers to purchase high-quality products at the most competitive prices, achieving genuine win-win cooperation. The company’s products are exported to North and South America, Europe, Asia, Australia, South Africa, and many other regions, earning strong international recognition and a solid reputation in the global market.
If you have related requirements or would like to learn more about dimethyl ether price trends and applications, please feel free to contact us. We look forward to building a sincere, mutually beneficial, and long-term partnership with you.
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.
The price of dimethyl ether 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!
dimethyl ether price per kg
dimethyl ether price per gallon
dimethyl ether price per ton 2022
dimethyl ether cost
dimethyl ether price per ton
dme price per kg
dimethyl ether price in india
dimethyl ether market