Category

Countries

Resilient Performance: Chinese DIPE Market Sustains Stability Amidst Slower Demands
Resilient Performance: Chinese DIPE Market Sustains Stability Amidst Slower Demands

Resilient Performance: Chinese DIPE Market Sustains Stability Amidst Slower Demands

  • 31-May-2024 3:29 PM
  • Journalist: Timothy Greene

With the week ending on May 24, 2024, Di isopropyl Ether (DIPE) prices in the Chinese market have remained stable at USD 1950/MT, continuing a trend of stability observed over the past two weeks. This stability can be attributed to several factors influencing the broader market dynamics.  Firstly, Asia's crude oil markets have experienced an extended decline due to concerns about reduced demand, as more plant capacity is going offline for ongoing maintenance in the region. The modest decline in international oil prices is primarily driven by the positive developments in ceasefire negotiations between Palestine and Israel, the easing of geopolitical tensions, and a persistently bearish outlook for global demand. This decline in the crude oil market has subsequently impacted Chinese naphtha prices, which have been on a downward trend for the past four weeks, leading to limited trading activity at local refineries. In the upstream market of DIPE, propylene prices have decreased as the market reached a relatively high level, resulting in reduced enthusiasm for market entry and sluggish enterprise sales. This has led to a decrease in propylene prices. The DIPE market, under cost pressure, has seen cautious procurement with low market entry enthusiasm. Poor sales in propylene enterprises have forced prices to be lowered to stimulate sales. Similarly, the upstream market for isopropyl alcohol has declined, contributing to lower production costs for DIPE.

Furthermore, the derivative markets for DIPE including Butyl Rubber and Methyl Tert-Butyl Ether (MTBE) have also seen declines, which didn’t provide enough cost support to the DIPE market. Demand for Butyl Rubber has recently decreased. On the supply and demand side for DIPE, the supply tightness due to maintenance at Chambroad Zhongju's facilities contrasts with weak downstream demand, significantly reducing raw material procurement enthusiasm. The domestic MTBE market continues to be weak, with the decline becoming more pronounced. The weakening trend in international crude oil prices has further exacerbated this situation. MTBE factories have faced shipment obstacles, and with the resumption of work on some previously shut down heterogeneous devices, the supply of MTBE resources has increased. This imbalance between supply and demand has led to a more noticeable downward trend in MTBE prices. Current terminal demand for DIPE is insufficient, and social unit inventory needs further digestion, resulting in downstream users purchasing on an as-needed basis and market transactions mainly involving small orders.

Several MTBE units, including those at Dongying Qifa, Minghao Chemical, Binzhou Jingbo, and Maoming Shihua, are currently shut down, while Qixiang Tengda's mixed alkane dehydrogenation unit is undergoing maintenance. Other units are operating normally without significant fluctuations, maintaining stable demand and supply dynamics, and contributing to a steady market atmosphere. Additionally, the trading sentiment has been moderate, supported by the stability in the feedstock propylene market, which exhibited minimal price fluctuations. The support from the upstream crude oil market has also played a role in maintaining this stability, ensuring that the DIPE market remains steady during this period.

According to ChemAnalyst, DIPE prices in the Chinese market are expected to decline due to several key factors. Ongoing normal operations by most manufacturers will result in a relatively high supply of spot goods. Additionally, the demand for DIPE may continue to lack positive drivers, with average shipment volumes and low purchasing enthusiasm for related raw materials. Consequently, the domestic DIPE market is projected to remain weak in the short term. This downward trend is likely to persist in the upcoming weeks, given the anticipated consistently low demand from downstream markets.

Related News

Steady Increase in The Di Isopropyl Ether Prices in US Market Amid Supply Chain Concerns
  • 09-Jan-2024 2:46 PM
  • Journalist: Nina Jiang
Di isopropyl Ether Prices Decline in US Amidst Improvement in Supply Chain Activities
  • 09-Oct-2023 6:12 PM
  • Journalist: Kim Chul Son
Disruption in Supply/Demand Equilibrium Witness Oscillations in the US Di Isopropyl Ether Market
  • 16-Jun-2023 1:59 PM
  • Journalist: Stella Fernandes
Di Isopropyl Ether Prices Surge in Asia Amidst Plant Shutdown
  • 15-May-2023 5:16 PM
  • Journalist: Jacob Kutchner