DME (Dimethoxyethane) Price Trend and Forecast

DME (Dimethoxyethane) Regional Price Overview

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

Dimethoxyethane (DME) Price Trend for the First Half of 2024

During the first half of 2024, the price trend of dimethoxyethane (DME) followed fluctuations in its primary feedstock, ethylene oxide. In the first quarter, dimethoxyethane (DME) prices were moderately supported by the steady supply and price increases of ethylene oxide. Limited inventories and strong demand from downstream sectors, such as the production of solvents, electrolytes, and battery materials, helped maintain price stability. However, the market faced challenges as intermittent slowdowns in ethylene oxide production, particularly during seasonal shutdowns in China, affected overall output.
 

Dimethoxyethane (DME) Price Chart

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Downstream demand for dimethoxyethane (DME), particularly in the chemical and pharmaceutical industries, remained steady, with positive momentum from the real estate and construction sectors, indirectly benefiting the market. However, moving into the second quarter, dimethoxyethane (DME) prices saw a downward shift, paralleling the southward trend of ethylene oxide.

The price declines were exacerbated by elevated costs of ethylene, which squeezed producer margins, and a softer demand for related derivatives. Additionally, the subdued performance of certain downstream industries, especially those reliant on polycarboxylate and furfuryl alcohol products, further weighed on the demand for dimethoxyethane (DME). Consequently, dimethoxyethane (DME) pricing showed a gradual weakening toward the end of the first half of the year, mirroring the suppressed market dynamics of its feedstock, ethylene oxide.

Analyst Insight

According to procurement resources, the price of Dimethoxyethane (DME) is thus expected to become stagnant with limited movement in the quarters ahead as the demand outlook of the commodity does not look promising.
 

Dimethoxyethane (DME) Price Trend for the Second Half of 2023

Dimethoxyethane (DME) acts as a crucial solvent and chemical intermediate in the industrial sector, which in turn is the primary driver of the market. The market demand is also influenced by its extensive application in polymer synthesis, electronics, and pharmaceuticals.

The need for DME is driven by factors including improvements in electronic manufacturing processes and pharmaceutical compositions. Further, DME's market dynamics are further influenced by the rising awareness about emphasizing sustainability and environmental consciousness in industrial processes and the rising demand for eco-friendly solvents.

During the third quarter of 2023, the Asian dimethoxyethane (DME) prices demonstrated varied pricing patterns, majorly due to the oscillations in its feedstock prices. The demand for chemicals also fluctuated in Asian countries, particularly in China and India, due to economic constraints and slowed down the momentum of the industrial sector. However, in the later months of this quarter and throughout the fourth quarter, the dimethoxyethane (DME) increased.

This overturn in the market activities was based on the rising cost of naphtha, disruption in supply chains and rising rates of procurement from the downstream industries. In Q4 of 2023, the market also demonstrated a surge in the cost of crude oil and natural gas, which raised the bar of production prices and, in turn, the pricing trajectory of dimethoxyethane (DME).

Analyst Insight

According to Procurement Resource, the price trend of Dimethoxyethane (DME) is expected to incline with the rise in the usage of environmentally friendly solvent systems and gradual improvements in the demand rates of downstream industries.
 

DME (Dimethoxyethane) Price Trend for the First Half of 2023

DME (Dimethoxyethane) prices are driven by the downstream demands from the solvent industries and the supply dynamics. In the first half of 2023, the DME (Dimethoxyethane) market sentiments were observed to be dull throughout, primarily because of reduced demand.

In the Chinese domestic DME market, the spot prices went from around 673 USD/MT in January’23 to about 545 USD/MT in June’23, with an approximate decline of about 19%. Bearish demands led to such feeble market sentiments.

Substantial reduction in DME feedstock prices because of reduced crude oil prices, especially when China already had access to discounted Russian oil, despite the ongoing Russia – Ukraine conflict, also contributed to reduced prices. Overall, weak market sentiments were observed.

Analyst Insight

According to Procurement Resource, the price trend for DME (Dimethoxyethane) are expected to behave in a similar manner since the overflowing inventories owing to high supply continue to affect the DME market fundamentals.

Procurement Resource provides latest prices of DME (Dimethoxyethane). 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.