Price trend

According to the monitoring of SunSirs, the domestic BDO market recovered after the festival. From January 3 to 5, the average price of BDO of domestic manufacturers rose from 9,780 RMB/ton to 10,370 RMB/ton. During the cycle, the price rose 6.03%, up 7.84% month on month and down 66.20% year on year.

Cost side

Raw calcium carbide: According to the monitoring of SunSirs, the domestic calcium carbide price ran smoothly, and the price remains at 3,700 RMB/ton from the beginning of the week to the end of the week. In terms of methanol, according to the monitoring of SunSirs, the price of domestic methanol in East China ports fluctuated at a low level, 2,708 RMB/ton at the beginning of the week, 2,671 RMB/ton at the weekend (as of 15:00 on January 5), and the price dropped 1.35% during the cycle. In the near future, there are few positive factors in the carbide and methanol markets, and the BDO cost support is weak.

Supply side

Affected by early plant maintenance and downstream contract order procurement, the spot supply in the market was tight. At the same time, Henan Energy entered the market for competitive procurement, supporting the continuation of the supplier's market mentality. The terminal demand performance was average, just purchased small order in needed; the trade market was dominated by the delivery of contract orders, while the spot goods were reluctant to sell. The offer was higher, and the overall market price moved upward. BDO supply side was obviously favorable.

Demand side

PTMEG industry load dropped to around 60%, maintaining contract follow-up. The PBT industry started to improve, and the digestion of raw materials increased, but the contract procurement was the main method, and the spot follow-up was limited. The load of PBAT industry was increased to around 15%, and the production of new capacity was delayed. The overall BDO demand had not changed much.

Market outlook

At present, the domestic BDO market is in short supply of spot goods, and the online transaction price is high. The manufacturing enterprises continue to support the market. Downstream deals are dominated by hard demand, and supply and demand are gaming. SunSirs’ BDO analysts expect that the domestic BDO market will be firmly consolidated.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com