DME capacity expands rapidly, high cost narrows profit.(Energy Chemical) China Chemical Reporter | October 26, 2008| | COPYRIGHT 2008 China National Chemical Information Center. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information) Copyright

China's demand for energy increased rapidly in 2007 while the tight supply pushed the market price of liquefied petroleum gas to move on. The dimethyl ether (DME) which has similar physical properties with liquefied petroleum gas, and has a lower production cost started to enter into the field of blending with liquefied petroleum gas by means of the opportunity. In the first half of 2007, the domestic DME producers got a fat profit. However, as to the second half of 2007, the profit from DME production reduced continuously. The market price of DME has kept falling down in 2008.

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