SunSirs: A Flash in the Pan? The BDO market Stopped Falling and Rebounded

Price trend

From March 31st to April 7th, the domestic BDO price dropped from 10,500 RMB/ton to 10,340 RMB/ton, with a 1.52% drop in price during the cycle, with a maximum amplitude of 2.67%. The price fell by 22.34% month on month and fell by 61.48% year-on-year.

Analysis review

Multiple devices were shut down for maintenance or agent replacement, and supply side support increased. At the same time, some production enterprises' online trading situation was still good, indicating a strong intention to support the market. According to the Commodity Market Analysis System of SunSirs, the decline in the BDO market slowed down and is expected to rebound..

On the cost side, raw material calcium carbide: downstream demand was still low, and the price of calcium carbide seemed to bottom out. In terms of methanol, the market price of methanol was low, and the overall gas buying was weak. BDO's cost side was bearish.

On the supply side, Markor Phase III, Wuheng Phase I, and Henan Energy Plant shut down for maintenance, and the industry's operating rate dropped to below 70%. At the same time, online procurement and listing sales were good, and the supply of goods held in the trade market was slightly tight, boosting the market price up, but the range was relatively limited. The positive factors on the supply side of BDO were relatively strong.

On the demand side, the main downstream PTMEG spandex industry chain saw a decline in load and market, while other downstream industries had also performed averagely with no significant improvement in demand, and maintained just in demand orders. At the same time, some traders and downstream companies had limited acceptance of high prices, suppressing market trends. In the short term, the demand side for BDO remains relatively empty.

Market outlook

Supply is positive while demand is negative, and there is currently no significant support on the cost side. BDO analysts from SunSirs predict that the domestic BDO market may fluctuate and consolidate.

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