Dimethyl Ether (DME) Prices Surge Amid Tight Supply and Strong Cost Support (October 2026)

1. Key Market Focus This Month

1. Methanol feedstock prices rose, providing stronger cost-side support;

2. Dimethyl ether (DME) market prices increased this month.

2. Monthly Market Analysis

Table 1: DME Market Price Statistics (Unit: RMB/ton)

Data Source: Chempricehub

In October, the center of gravity for the DME market shifted upward. Initially, favorable cost conditions combined with concentrated pre-holiday stockpiling led to active trader participation and robust trading activity, allowing factories to smoothly reduce inventories. In the Southwest, supply shortages from Chongqing plants tightened availability and supported price strength, while other regions saw limited fluctuations. Plans for integrated units to resume production contributed to optimistic market sentiment. Subsequently, methanol prices dropped significantly, weakening cost support. The Southwest remained firm due to delayed transmission effects, while other regions held steady in a wait-and-see mode as downstream stockpiling ended and demand reverted to rigid needs, causing inquiries to cool. During the mid-month period, methanol entered a range-bound oscillation, leading to catch-up declines in multiple regions. Factories adjusted prices according to market conditions to digest inventory, traders became cautious in purchasing, and end-users procured based on immediate needs, making significant volume growth in transactions difficult. In the latter part of the month, cost support persisted, and overall supply remained low. The Southwest faced gas restrictions again, resulting in tight inventories. Supply shortages triggered queueing for orders, driving up local and surrounding prices, while other regions maintained stable pricing, leading to a recovery in trading atmosphere.

3. Analysis of Market Influencing Factors

1. Methanol Feedstock Aspect

In early October, inland methanol prices followed port trends and rose. The tight supply pattern caused by previous plant maintenance continued, with low inventory levels at enterprises in major production areas. Lingering momentum from pre-holiday stockpiling kept market willingness to maintain high prices strong. As high prices transmitted to downstream sectors, traditional downstream users and olefin producers gradually became more cautious in procurement, focusing on rigid demand with insufficient willingness to chase highs. Coupled with the gradual resumption of some previously maintained units, incremental inland supply was released. Failed auctions in production areas increased, halting the price uptrend and leading to gradual corrections. Cost support in inland areas remained relatively solid, with smaller declines compared to ports, rapidly narrowing regional price gaps. From mid-to-late month, transactions were primarily driven by rigid demand, overall trading activity cooled, and the market operated within an oscillating range.

2. Cost and Profit Aspect

In October, the average market price for DME in Henan, China, was 5,733 RMB/ton, up 21.98% month-on-month and up 76.13% year-on-year.

In October, the average profit for DME in Henan, China, was 633 RMB/ton, down 318.28% month-on-month and down 8,012.50% year-on-year.

4. Next Month Market Forecast

Overall, influenced jointly by methanol feedstock costs and Southwest supply disruptions, the demand side consistently lacked concentrated volume growth. Chempricehub forecasts that the DME market will operate steadily with a slightly bullish trend in the short term.