The domestic BDO market trades sideways. According to the sample data from SunSirs, till 11th November, the average price of domestic BDO is RMB 9,520 yuan/ton. The price is stable on month-on-month basis, while it is 10.61% lower on year-on-year basis.
Products: The domestic BDO market is sideways. The cost support from end downstream is weak. However, some factories have been in maintenance, which is good news. Suppliers have a strong mentality. The offer is high. The demand of downstream is weak. Procurement and replenishment is based on small order. There is not volatile market negotiation.
In terms of the market, the BDO market in North China has traded sideways. The facilities of Hexi Coal Co.,Ltd and Meizhou Bay Co.,Ltd is in maintenance. The factory is quite optimistic on market trends. The downstream players have increased cautiousness on entering market. The focus of market has been stabilized. The BDO market in East China is stagnant, and the cost support is weak. However, there is no pressure on the stocks. The factory is in a high-spirited state of mind. The quotation is high. The downstream demand is relatively weak. Downstream players procure on small-order basis. There is not too much big deal. In the South China region, the BDO market is highly sideways. The industrial players have stable mentality. And they still have the intention to increase price instead of selling at a low price. Downstream players procure on exact demand. Small and high-end orders are negotiated in the market.
Industry Chain: In terms of raw materials, methanol, the northwest disk premium is still serious. And the benchmark prices of Northwest enterprises such as Inner Mongolia province have fallen to around RMB 1,820 yuan/ton, but some traders still wait and see. As for the situation of receiving goods of downstream enterprises in Shandong and other places, there is unstopping decline. Most companies are cautious. MA continues to bottom out. Industrial players have a fair-spirited state of mind. Overall, China’s methanol market will be dominated by weak decline in the short term.
Calcium Carbide: The price of calcium carbide market in Hebei area is temporarily stable. The purchase price of local first-class calcium carbide is RMB 2,970-2,980 yuan/ton. The upstream supply is acceptable. The arrival of good is normal. The procurement enthusiasm is general. Some of goods are delay due to loading and unloading or road blockage. Overall, it is estimated that the market price of calcium carbide will trade sideways.
On the positive side, the manufacturers are quite intent to increase price. And the crane coal is under maintenance. On the negative side, downstream demand continues to be weak. SunSirs’ BDO analysts expect that BDO market will trade sideways in the short term. And the detail depends on restart of plant of Tianye Co.,Ltd this month.
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