According to the Commodity Market Analysis System of Shengyi Society, from March 7th to 14th, the average price of BDO in China fell from 8014 yuan/ton to 7964 yuan/ton, with a price drop of 0.62% during the period, a month on month drop of 4.86%, and a year-on-year drop of 15.27%. Exploring the weakness of the domestic BDO market. Recently, the load on the equipment has not been high, and there is support from the supply side. The supplier’s intention to maintain price stability continues. But as new production capacity emerges, downstream bearish sentiment increases. Some of the manufacturers holding the goods lack confidence in their offers, and they are negotiating narrow discounts for actual orders, causing the market center of gravity to fluctuate downward.

There are significant fluctuations in the supply and installation aspects, and the industry’s capacity utilization rate has dropped below 50%. And there are still other devices for maintenance in the later stage, and the factory’s shipments are still acceptable, maintaining a stable market mentality. The supply of BDO is affected by favorable factors.

On the cost side, raw material calcium carbide: there has been a significant decrease in supply, due to sporadic equipment maintenance and peak shaving production, in addition to unstable power restrictions, resulting in low market supply. The price of domestic calcium carbide market is rising. The domestic methanol market is operating strongly. As of 10:00 am on March 14th, the domestic methanol Taicang price was 2656 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, after a brief negative trend in the downstream PTMEG industry, some units are expected to undergo maintenance in mid to late March, while other industries have little change in production, resulting in limited increase in raw material digestion. Moreover, most downstream industries have been suffering long-term losses, and there is a strong bargaining sentiment towards raw materials. The demand side of BDO is affected by bearish factors.

In the future market forecast, some facilities will be shut down for maintenance, while the overall increase in new production capacity will be limited and supported by supply side inventory. And the industry has been suffering long-term losses, and the supply side’s stable market mentality continues. Business analyst BDO predicts that the domestic BDO market has limited volatility.