According to the Commodity Market Analysis System of Shengyi Society, from September 5th to 12th, the average price of BDO in China remained at 7542 yuan/ton, with a month on month decrease of 8.97% and a year-on-year decrease of 0.75%. The BDO market is operating at a stalemate, and downstream industries are experiencing an overall increase in production, resulting in an increase in raw material digestion. The factory’s shipment pace is still acceptable, and the industry has been losing money for a long time. The suppliers are actively stabilizing the market. The supply and demand negotiation game continues, and the market remains deadlocked.
On the supply side and in terms of equipment, Wanhua Chemical’s equipment has experienced a decrease in load due to unforeseen circumstances. However, some of the previously maintained equipment has been restarted and is now operating stably. The overall production of the industry has slightly increased, but the supply side support is relatively average. The supply side of BDO is affected by negative factors.
On the cost side, raw material calcium carbide: The domestic calcium carbide market is on the rise, with smooth shipments from production enterprises and overall tight market supply. Raw material methanol: The domestic methanol market continues to be weak. As of 10:00 pm on September 11th, the reference price for domestic methanol in Taicang is 2285 yuan/ton. The raw material calcium carbide has seen an upward trend, while methanol has been weakly consolidated, and the impact on BDO costs is mixed.
On the demand side, with the restart or load increase of some maintenance equipment, the downstream PTMEG, GBL-NMP, PBAT, and PU pulp industries have seen an increase in capacity utilization, resulting in a continuous increase in raw material digestion. Multi dimensional contract orders are being followed up, and the intention to purchase spot goods is weak under cost pressure. The demand side of BDO is affected by bearish factors.
In the future, the BDO market is expected to experience a decrease in supply and an increase in demand, with ongoing negotiations and a stalemate in the market. Some devices are expected to undergo maintenance, resulting in a reduction in BDO supply; And the industry continues to suffer losses, with suppliers actively stabilizing the market. The overall downstream production has increased, leading to an increase in the digestion of raw materials, but resistance to high prices has suppressed the trend of raw materials. Business Society BDO analysts predict that the domestic BDO market will mainly focus on consolidation and observation.