Price Trend

According to the sample data monitored by business associations, the average price of domestic BDO market was 9,360 yuan/ton as of September 4, and the price was stable, down 17.89% year on year.

II. Market Analysis

Products: Domestic BDO market is weak. Raw material methanol continued to rise, cost support increased, and some factories continued to boom. Downstream market entry is cautious, long-term consumption is relatively slow, spot negotiations are relatively light, the actual single delivery is on the low-end. At present, all factories start smoothly, the operators pay more attention to Kaixiang restart time and the process of new production capacity entering the market. They are tired and go with the market.

On the market side, the BDO market in East China is weak. The overall start-up of the factory is stable and the supply of goods is abundant. Downstream just need to enter the market, the atmosphere of spot negotiations is light. The middleman looks at the market and talks with it. The BDO market in South China is weak and deadlocked. Downstream on-demand procurement, and spot bargaining sentiment is strong. All factories start work normally, the stable delivery of goods is the main business, temporarily stable offer.

Industry chain: raw materials, methanol: methanol market continued to rise. The price of Inner Mongolia has been raised twice to 1670-1680 yuan/ton, and the shipments of the manufacturers are smooth. The main products are Shandong, Hebei and other places. Mainstream prices in Guanzhong region rose to 1880-1950 yuan/ton, and inventory of main enterprises maintained a low level. Northern Shaanxi is boosted by the rising surrounding areas, with the mainstream price of 1650-1670 yuan/ton and steady turnover. With prices soaring to a high level, the methanol market is expected to rise or converge. Mainstream price stabilization is dominant.

Calcium carbide: Calcium Carbide factory price stability. Affected by Sichuan procurement, Ningxia area shipped smoothly and Wuhai area limited film sound, Shanxi and Henan area’s arrival volume decreased significantly compared with the earlier period, actively purchasing. Due to the recent inspection and repair of Shenyang Chemical Industry, the supply of goods began to circulate to North China, the number of unloaded trucks increased, and the regional uneven arrival of goods became more obvious. Now some purchasing prices in Shandong have been lowered, and it is expected that price adjustment will still occur in the near future.

3. Future Market Forecast

As far as the current market is concerned, the supply side is uncertain: Kaixiang device may be restarted and new capacity is expected to enter the market. The downstream does not show a backup atmosphere, just need to enter the market. Emphasis is placed on device dynamics, careful operation and waiting for clear message guidance. Business agency BDO analysts expect that the short-term domestic BDO market will continue to be weak and stable, paying more attention to Kaixiang driving time and downstream demand changes.