SunSirs: The Domestic BDO Market Was Consolidating at High Levels

Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic BDO market was at a high level of consolidation. From August 28th to September 4th, the average price of domestic BDO increased from 11,485 RMB/ton to 11,642 RMB/ton, with a weekly price increase of 1.37%, a month on month increase of 4.22%, and a year-on-year increase of 14.01%. And the online sales of the factory were relatively high, supporting suppliers to continue to support the market. Although the main terminal spandex market had experienced a narrow upward trend, there was no significant improvement in the start of construction, which temporarily provided limited support for the trend of raw materials.

Analysis review

On the supply side, Xinjiang Xinye Plant changed agents for 5-7 days on September 1st; the devices of Yanchang Oil were shut down for maintenance from August 20th to September 7th; Two sets of 60,000 ton units from Xinjiang Tianye had successively produced products; But as the early maintenance equipment gradually restarted, the market supply had increased, and supply side support had weakened. There were no planned changes to other devices. The supply side of BDO was mixed.

On the cost side, raw material calcium carbide: The domestic calcium carbide market continued to be at a high level. With the increase in supply, the market supply and demand had eased, but in the short term, there is still a shortage of goods. In terms of methanol, the domestic methanol market had been experiencing high volatility recently. As of 15:00 on September 4th, the domestic methanol Taicang price was 2,530 RMB/ton. Recently, the market for calcium carbide and methanol had continued to rise, and the cost of BDO had continued to be positive.

On the demand side, the PTMEG industry restarted the Blue Mountain Tunhe and Ningxia Xiaoxing chemical plants, extended the maintenance status of petroleum plants, and put the Huaheng plant into operation and trial run; The load of the PBT industry had increased to slightly over 50%, with contract procurement still being the main focus and spot tracking average; The production of TPU in the polyurethane field declined, while the production of PU slurry industry had remained stable. The demand side of BDO shows positive factors in the short term.

Market outlook

There was still some support on the supply side, but the downstream of the terminal had limited ability to accept high prices. The main follow-up was contract orders, while spot orders follow-up was general, and market trends maybe was suppressed. BDO analysts from SunSirs predict that the domestic BDO market will mainly consolidate at a high level.

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