The domestic BDO market is running smoothly. According to the sample data monitored by business associations, the average price of the domestic BDO market was 9360 yuan/ton as of August 15, rising by 1.74% annually and falling by 19.21% year-on-year.
II. Market Analysis
Products: The domestic BDO market runs smoothly. Under the pressure of cost, manufacturers are not willing to make profits. Except for Dongyuan Parking and Repair, there is no obvious change in other factories and no favorable support in the supply side; the downstream demand side is still weak, contract delivery is dominant, the spot market just needs small single delivery, and the high-end negotiation atmosphere is cold. At present, there are many negative factors in the domestic BDO market, and the supplier is strong and market intention is downward, and the focus is rigid.
On the market side, the BDO market in South China is deadlocked. The market is full of goods, the digestion of downstream contracts is slow, and the negotiation of spot orders is weak. Under the supply-demand game, the supplier’s price-keeping mentality supports the temporary stability of the market focus. The BDO market in East China is running steadily. At present, although there are factory maintenance, but the market supply is abundant, the downstream demand is weak, the actual single talk is cold, the factory price mentality, the center of gravity is stable.
Industry chain: raw materials, methanol: methanol market is stable, the mainstream price in Inner Mongolia this week is 1800-1850 yuan/ton, upstream factory shipments are smooth, most manufacturers stop selling, traders are optimistic about the recent market. The mainstream price in Guanzhong area today is 2000-2050 yuan/ton. As many factories in Guanzhong still haven’t recovered, the remaining factories insist on bidding, and Xianyang chemical plant will resume production soon.
Calcium carbide: Domestic Calcium carbide ex-factory price consolidation is the main trend, mainstream prices are stable, but real single transactions continue to appear at low prices, downstream areas of Shaanxi, Hebei and Tianjin have been downgraded, so aggravating market wait-and-see, Ningxia, Wuhai area factory prices began to loosen, domestic calcium carbide ex-factory prices are expected to decline again.
3. Future Market Forecast
At present, the cost pressure is high and the manufacturers are willing to keep their prices, but the downstream demand is difficult to improve. The atmosphere of negotiation is light and the focus of negotiation is in the middle. In the short run, BDO analysts of business associations expect that the domestic BDO market will continue to operate weakly, focusing on changes in supply and demand.