SunSirs: BDO Market Continued to Decline

Price trend

According to the monitoring of SunSirs, the BDO market continued to decline. From March 3 to 10, the domestic BDO price fell from 13,160 RMB/ton to 12,780 RMB/ton, and the price fell 2.89% in the cycle, down 5.45% month-on-month and down 55.25% year-on-year.

Analysis review

Some BDO devices were overhauled, and the market supply was reduced. At the same time, the bidding price of the factory was high, and the production enterprises supported the high price. However, due to the sluggish follow-up of terminal demand, most downstream industries were under pressure on costs, and had a weak intention to purchase raw materials and seriously depressed prices. The decrease in supply did not offset the downturn in demand, and the focus of the market continued to decline.

In terms of cost, raw calcium carbide: the demand was low, the market performance of oversupply was gradually strengthened, and the market situation of calcium carbide was sluggish. In terms of methanol, the cost support was temporarily stable and the supply was relatively abundant. The methanol market fluctuated in a narrow range. BDO's cost side was negative for its market.

On the supply side, Great Wall Energy, Shaanxi Ronghe devices were under maintenance, and Inner Mongolia Dongjing, Lanshan Tunhe and Kaixiang Chemical released maintenance news, and the supply side had some support; In terms of the factory, the bidding and transaction situation was fair, and the production enterprises mainly maintained the price. The supply side had a good  effect for BDO.

On the demand side, the overall performance of the downstream industry was average, and the contradiction between supply and demand appeared, which aggravated the cautious bearish sentiment in the market. The PTMEG-spandex industrial chain industry had an operating rate of nearly 80%, and the overall digestion was good. In the PBT industry, Kaixiang Chemical Plant had been shut down for maintenance, and the commencement had not changed much; The operating rate of PU slurry and TPU industries in the polyurethane field was around 50% to 60%, and the orders followed up just in needed. In the short term, the demand for BDO is not significantly positive.

Market outlook

Although the maintenance supply of manufacturers had decreased, and the bidding price had remained in a state of price keeping, the demand-side performance continued to be weak, and the enthusiasm for entering the market was not high, which suppressed the market trend. BDO analysts of SunSirs predict that the domestic BDO market may be adjusted at a low level.

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