Dimethyl Ether (DME) Price Trend and Forecast

Dimethyl Ether Regional Price Overview

Get the latest insights on price movement and trend analysis of Dimethyl Ether (DME) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Dimethyl Ether (DME) Price Trend for the First Half of 2024

Asia

Dimethyl ether prices were found to be fluctuating for the majority of the first half of 2024. Upstream market dynamics primarily drove the price trend for DME during the concerned time frame. The price trajectory of DME showed a stable trend for most of the first quarter. There was an oversupply situation in the market however, the demand was average which was unable to impact the price trend in a very positive manner.
 

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In Q2, the prices marginally inclined due to an increase in the prices of methanol in India, however, an average downstream performance kept the overall market trajectory consolidated. Overall, the market performance was range bound for the majority period.

Europe

European market witnessed a trend similar to the other global markets however, the markets here were more challenged due to navigation difficulties in the Red Sea and Suez Canal amid rising geopolitical tensions. The shipments from Asia declined significantly due to attacks on ships by Houthi rebels. The upstream methanol prices showed a volatile trend, which was reflected in the prices of dimethyl ether (DME). Overall, the supply chain disruptions and weakening consumer confidence kept the prices oscillating in the said period.

North America

DME prices in the American market reflected the oscillations in its Asian and European counterparts. A fluctuating price trajectory was observed amid the volatile supply and demand situation. The trade was impacted by supply disruptions due to reduced water levels in the Panama Canal and distortion of the Red Sea trade route, leading to heightened freight costs, low vessel availability, and delayed shipments. These rising costs of transportation led to lower profit margins for the manufacturers and heightened their reliability on domestic consumption as well. Stakeholders tried to balance the market from the supply side, however, the overall outlook remained wavered.

Analyst Insight

According to Procurement Resource, the prices of dimethyl ether (DME) will continue to show a fluctuating trend depending upon the price of its feedstock and downstream demand.
 

Dimethyl Ether (DME) Price Trend for the Second Half of 2023

Asia

During the early stages of the H2 of 2023, there was a notable increase in the cost of raw materials like sulphuric acid and various other chemicals in the Indian market. However, as the quarters progressed, an oversupply situation emerged, forcing the traders to destock their inventories and offer huge discounts on bulk purchases.

The initially supportive higher prices of sulphuric acid also started to oscillate in the latter half of the fourth quarter, resulting in the southward journey of dimethyl ether prices and reduced industrial activities.

Europe

Initially, the escalating cost of feedstock materials seemed to work in favor of the dimethyl ether market and was able to push dimethyl ether prices upward in Europe. However, disruptions in the supply chain and a contraction in consumer spending soon disrupted this trend. The fertilizers sector, facing adverse climate conditions and sudden heavy rainfall, also felt the impact of existing tensions, further affecting the dimethyl ether market.

North America

In the United States, dimethyl ether prices witnessed a decline in the final month of the fourth quarter after oscillating through a major part of the third and fourth quarters. This drop was attributed to weak demand from downstream sectors like textiles and agrochemicals, coupled with oversupply in the domestic market. Additionally, the decrease in the cost of feedstock materials added to manufacturers' concerns. Therefore, amid dire market conditions, the traders adopted a cautious stance as economic and demand recovery appeared distant.

Analyst Insight

According to Procurement Resource, the price trend of Dimethyl ether is estimated to oscillate in a narrow range in the upcoming quarters as the uncertain demand and fluctuating cost of feedstock materials will drive the market.
 

Dimethyl Ether (DME) Price Trend for the First Half of 2023

Asia

Dimethyl Ether (DME) prices fluctuated throughout the first half of 2023 in the Asian markets. DME prices primarily varied with the price oscillations in the feedstock methanol market and downstream demands from the aerosol and solvent industries. The prices rose steadily at the beginning of Q1, given the active buying sentiment due to the lunar new year holidays.

However, the prices declined towards the end of Q1, as the factories started churning products after opening. Some incline was seen in the initial months of Q2, given the momentary rise in demands. Soon, the dimethyl ether prices declined as the market supply overtook the demand dynamics leading to the saturation of the market.

Europe

European Dimethyl Ether (DME) markets, too, witnessed wavering price trend in H1’23. The price inclination was very narrow, which kept the Dimethyl Ether (DME) prices anchored in the market. The primary reason for slow growth was a decline in the upstream costs and lowered energy and freight costs. However, at the end of quarter two, the price trend for Dimethyl Ether (DME) declined as the downstream demands plunged in the European markets.

North America

The North American Dimethyl Ether (DME) market mimicked the pricing patterns as seen in its Asian counterpart. The DME prices fluctuated throughout the said period. Upstream costs were supported by stable energy and transportation costs. Although variations in the feedstock prices influenced the trend, overall, trend inclined at the beginning and declined at the end of each quarter as per downstream demands.

Analyst Insight

According to the Procurement Resource, Dimethyl Ether (DME) prices will likely remain oscillating in the coming months, given the erratic downstream demands and fluctuating feedstock prices.

Procurement Resource provides latest prices of Dimethyl Ether (DME). Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.