According to the Commodity Market Analysis System of Shengyi Society, from August 12th to 20th, the average price of BDO in China fell from 8778 yuan/ton to 8742 yuan/ton, with a price drop of 0.41% during the period and a year-on-year decline of 23.601%. The focus of the domestic BDO market continues to decline, with an overall increase in industry operating rates and an increase in market supply. However, the overall load of downstream industries is average, and the supply-demand contradiction highlights the bearish mentality of industry players in terms of purchasing and sales, leading to a volatile downward trend in the market.

On the supply side, there has been a significant increase in the supply of goods in the market, with weak support from the supply side. The favorable factors for BDO supply have weakened.

On the cost side, raw material calcium carbide: With the obvious oversupply in the calcium carbide market, the factory price continues to decline, and the enthusiasm of enterprises to start production remains low. However, downstream demand is still in a decreasing stage, and market sentiment is sluggish. Raw material methanol: The methanol market is operating weakly. As of 10:00 am on August 20th, the domestic methanol Taicang price is 2425 yuan/ton. The BDO cost side is affected by bearish factors.

On the demand side, there is no significant change in downstream industry load, maintaining the follow-up of essential orders, and severely suppressing spot prices. There is a lack of obvious positive factors on the supply and demand side of the market, and business operators have a bearish attitude towards purchasing and sales. The demand side of BDO is affected by bearish factors.

Future forecast: Currently, market prices are at a low level, industry losses are intensifying, and the supply side’s stable market mentality is the main factor, which may limit the downward space. BDO analysts predict that the domestic BDO market will continue to operate weakly.