Supply side support weakens, domestic BDO market continues to decline

According to the Commodity Market Analysis System of the Business Society, the domestic BDO market continues to decline. From May 29th to June 2nd, the average price of domestic BDO decreased from 11771 yuan/ton to 11078 yuan/ton. During the week, the price decreased by 5.89%, a month on month decrease of 5.07%, and a year-on-year decrease of 50.63%.



The maintenance devices in the domestic BDO market have gradually restarted, and supply side support has weakened. The follow-up of terminal demand is average, and the mentality of the holding manufacturer is mainly to sell at a profit, with the market focus continuing to decline.


On the supply side, the short-term BDO supply side is mixed.


On the cost side, raw material calcium carbide: The cost side support has weakened, and against the backdrop of insufficient demand, there is a strong pessimistic sentiment about the downward adjustment of calcium carbide. On June 2, the benchmark price of calcium carbide in the business community was 3150.00 yuan/ton. In terms of methanol, supply is still abundant, demand changes are limited, and costs may temporarily remain stable. The domestic methanol market is weak, and on June 2nd, the benchmark price of methanol for Shangshe was 2161.67 yuan/ton. Recently, the market for calcium carbide and methanol has continued to be sluggish, and there is currently no significant improvement in the cost of BDO.



On the demand side, the market in the spandex industry is weak. The Cathay Pacific Xinhua PTMEG device was shut down for maintenance on June 5th, which may reduce the digestion of raw materials. The PBT industry has a load of nearly 60%, increasing the digestion of raw materials and following up on orders in demand; The operating load of PU slurry and TPU industry in the polyurethane field is 40-50%. The PBAT industry’s load has dropped to around 10%. The demand for short-term BDO is mixed.


In the future, it is predicted that some maintenance devices will soon restart, leading to an increase in supply and a weakening of supply side support. At the same time, there is no expectation of improvement in downstream demand at the end, and BDO analysts from Business Society predict that the domestic BDO market may continue to be weak.

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