SunSirs: The Domestic BDO Spot Market Remained Stable
January 08 2021 10:52:40 SunSirs (John)
Price trend
Recently, the domestic BDO spot market has been operating steadily. Only a few companies have announced the new January external listing price. According to the sample data monitored by SunSirs, as of January 7, the average domestic BDO producer price was 13,125 RMB/ton. The month-on-month remained stable, with a year-on-year increase of 33.98%.
Analysis review
The domestic BDO market remained stable. On the 7th, the prices of raw material calcium carbide and methanol both declined, and the profit margin increased. The factory pursued the maximum profit. At the same time, the inventory pressure was not large, and the market mentality was firm. Intermediaries had limited supply of goods and were not motivated to trade, but they were cautious in spreading profits and continued to offer high prices. The downstream operations generally started generally. Although some factories had slightly increased stocking intentions, they were resistant to high prices. Negotiations between the supply and demand sides were deadlocked, and the market was unlikely to fluctuate significantly.
In terms of installations, due to the impact of natural gas, Sichuan Tianhua and Chongqing Jianfeng's operating rate dropped to 70%; Kaixiang expected to restart installations on January 7. The inventory pressure was not great, and the spot supply was limited.
Market outlook
The current cost-side support is weakening, and Kaixiang is about to restart. The expected increase in supply is negative for the downstream mentality, and procurement is cautious. SunSirs BDO analysts predict that the domestic BDO market will remain stagnant in the short term.
If you have any questions, please feel free to contact SunSirs with suooort@sunsirs.com.
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