According to the Commodity Market Analysis System of Shengyi Society, from March 3rd to 7th, the average price of BDO in China fell from 8371 yuan/ton to 8285 yuan/ton, with a price drop of 1.02% during the period, a month on month drop of 1.53%, and a year-on-year drop of 12.12%. Although the industry’s capacity utilization rate is relatively low, it supports the supplier’s price mentality. However, the overall downstream load has declined, leading to a reduction in the amount of raw material digestion, and the transmission of industrial chain costs has been hindered, resulting in a strong bargaining sentiment towards raw materials. At the same time, new production capacity is expected to produce products, and holding manufacturers are offering discounts for shipments, resulting in a volatile downward trend in the market.

In terms of supply and equipment, both restarts and shutdowns are still in place, and the industry’s capacity utilization rate is still relatively low. And there will still be device maintenance in the later stage, supporting the supplier’s continued price mentality. The supply of BDO is affected by favorable factors.

In terms of cost, raw material calcium carbide: The domestic calcium carbide market still shows an upward trend, with a significant decrease in production and a strengthening of regional supply shortages. The domestic methanol market is operating strongly. As of 10:00 am on March 7th, the domestic methanol Taicang price was 2669 yuan/ton. The prices of raw materials such as calcium carbide and methanol are relatively strong, and the cost of BDO is influenced by favorable factors.

On the demand side, the main downstream PTME has seen a decrease in the shutdown load of some units, while PBT production has increased. There has been no significant change in the capacity utilization rate of other downstream industries, but most industries continue to operate at a loss, maintaining a tight demand for raw materials through contract orders. Under a risk averse mentality, there is a lack of follow-up on spot goods and serious negotiations on prices. The demand side of BDO is affected by bearish factors.

In the future market forecast, the industry’s capacity utilization rate will still be relatively low, and suppliers will maintain a price mentality. The short-term market lacks significant support. Business analyst BDO predicts that the domestic BDO market is mainly weak.