SunSirs: After the Festival, the BDO Market Was Waiting and Sorted Out

Price trend

According to the sample data monitored by SunSirs, from October 8 to 13, the average BDO price of domestic BDO manufacturers at the beginning and end of the week remained at 14,600 RMB/ton, with a month on month increase of 33.79% and a year-on-year decrease of 52.33%. In terms of market price, the mainstream negotiation price of BDO bulk water in South China was 14,200-14,700 RMB/ton; the negotiated price for barrel packing was 15,000-16,000 RMB/ton (delivered by acceptance). BDO bulk water spot mainstream negotiation price in East China was 14,200-14,500 RMB/ton; the negotiated price in barrels: 15,000-16,000 RMB/ton

Analysis review

The domestic BDO market was mainly on the sidelines and sorted out. Although the manufacturers had a strong intention of supporting price, and the published auction prices were mostly high and stable, the market price had a slight upward trend in the middle and late weeks, with a range of about 200 RMB/ton, but the downstream receiving intention was not strong, high prices were difficult to clinch deals, and the buying and selling atmosphere was light.

In terms of upstream raw materials, raw calcium carbide: the domestic calcium carbide market was stable with slight changes, road transportation was blocked, and the enterprise's shipment speed slowed down. However, downstream procurement was active, and the lack of regional arrival affected downstream construction. In the short term, the domestic calcium carbide market is expected to rise.

In terms of methanol, SunSirs monitored that the price of domestic methanol in East China ports fell after the festival, which was 3,246 RMB/ton at the beginning of the week and 2,850 RMB/ton as of October 13. The price fell by 12.22% during the cycle, and the domestic methanol market was weakly sorted out. cost support for BDO was average.

In terms of downstream products, the main downstream PTMEG spandex industry mainly digested inventory, and the market did not fluctuate significantly; Other downstream products also followed up with the contract, and the spot follow-up was weakened, which to some extent inhibited the BDO market trend.

Market outlook

The manufacturer's intention to support the market continued, the downstream rigid-orders  followed up, and the high price transaction was blocked. The market lacked the guidance of obvious positive factors. SunSirs’ BDO analysts expect that the domestic BDO market will be sorted out in shock mainly.

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