Price trend
According to the Commodity Market Analysis System of SunSirs, from November 25th to 29th, the average price of BDO in China fell from 8,728 RMB/ton to 8,642 RMB/ton, with a price drop of 0.98% during the period and a year-on-year decline of 10.24%. Although there have been device replacements, the restart of temporary faulty devices and the operation of some devices with increased load have led to an increase in industry capacity utilization and weakened supply side support. Downstream industry contracts were following up, spot trading was light, holders were cautious, and the market focus was stable with a downward trend.
Analysis review
On the supply side, Inner Mongolia Huaheng replaced a set of equipment, but Kaixiang, Guotai, Great Wall Energy, Hengli and other equipment had restarted or increased their load operation, resulting in a significant improvement in industry capacity utilization and an increase in market supply. The expected increase in market supply and inventory had weakened supply side support.
On the cost side, raw material calcium carbide: The power restrictions in Inner Mongolia had eased, and the market supply capacity had increased. With the rise in prices in the early stage, trade inversion had led to a trading environment list. Raw material methanol: The domestic methanol market continued to rise. As of 10:00 am on November 29th, the domestic methanol Taicang price was 2,548 RMB/ton. The prices of raw materials such as calcium carbide and methanol had been consolidating at a high level, and the cost of BDO had been affected by favorable factors.
On the demand side, most downstream industries such as PTMEG, PBAT, and polyurethane hafreduced production loads due to equipment load reduction or maintenance, resulting in a decrease in raw material digestion. The demand side of BDO had negative effect.
Market outlook
The supply of market goods had increased, while the pace of downstream demand had followed suit, resulting in light spot trading volume and intensified supply-demand contradictions. The BDO analyst from SunSirs predicts that the domestic BDO market is weaker and consolidating.
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