SunSirs: The BDO Market Had Shown a Significant Upward Trend

Price trend

According to the Commodity Market Analysis System of SunSirs, from October 21st to 25th, the average price of BDO in China rose from 7,585 RMB/ton to 8,200 RMB/ton, an increase of 8.10% during the period and a year-on-year decrease of 19.64%. As of October 25th, the utilization rate of BDO production capacity had dropped to a low point within the year, and transportation in Xinjiang had not fully recovered, resulting in a tight market supply. Moreover, the online sales prices continued to rise, and suppliers had a positive attitude towards the market. Downstream followed up on demand, BDO market center fluctuated and rose.

Analysis review

On the supply side, Great Wall Energy and Sichuan Tianhua Plant have successively replaced their agents, and the overall load of the BDO industry has once again decreased. Transportation in Xinjiang has not fully recovered, and the shortage of market supply continues. The capacity utilization rate of the BDO industry has once again declined, and the market supply of goods ws favorable.

On the cost side, raw material calcium carbide: The regional performance of the calcium carbide market had strengthened, and the price of calcium carbide had remained stable and stable. Raw material methanol: The domestic methanol market had rebounded slightly. As of 10:00 am on October 25th, the domestic price of methanol in Taicang was 2,440 RMB/ton. The raw material calcium carbide market has experienced narrow fluctuations, with methanol prices rising and BDO costs having a mixed impact.

On the demand side, the main downstream PTMEG production has declined, while the PBAT industry has increased production. There has been no significant change in other downstream loads, and the overall demand side has reduced the amount of raw material digestion. Although some downstream industries have followed the rise in raw material prices, profits still suffered losses. The impact of BDO demand remained to be seen.

Market outlook

The industry load remained low, the market supply of goods was tight and continued to be tight, the supply side intended to support the market, the downstream industry was under cost pressure, and the ability to accept high prices was limited. We will continue to follow up on contract orders and focus on small spot orders, intensifying the supply-demand game. SunSirs’ BDO analysts predict that the domestic BDO market is mainly consolidation dominated to be strong.

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