According to the Commodity Market Analysis System of Shengyi Society, from July 15th to 19th, the average price of BDO in China fell from 9042 yuan/ton to 9000 yuan/ton, with a price drop of 0.47% during the period and a year-on-year decline of 18.92%. The domestic BDO market is weak and deadlocked, approaching the settlement cycle, with a mainly cautious and wait-and-see attitude. Follow up on urgent orders downstream of the terminal, the game between supply and demand continues, and the market trading center is deadlocked.

On the supply side and in terms of equipment: The overall increase in market supply is limited, but the supply side support is still acceptable, and the supplier’s intention to maintain prices continues. The supply side of BDO is affected by favorable factors.

On the cost side, raw material calcium carbide: the operating rate has decreased narrowly, and overall supply has remained stable. However, the export of downstream maintenance and supporting calcium carbide has intensified market observation, and calcium carbide enterprises are showing high enthusiasm for raising prices. Raw material methanol: The methanol market is experiencing weak consolidation. As of 3:00 pm on July 19th, the domestic methanol Taicang price is 2500 yuan/ton. The cost impact of BDO is mixed.

On the demand side, the main downstream PTMEG and GBL/NMP industries have experienced a decline in production, and the utilization rate of other downstream production capacity is average, continuing to follow the pace of rigid demand. The transmission of industrial chain costs is not smooth, with multi-dimensional contract orders trading and light spot negotiations. The demand side of BDO is affected by bearish factors.

In the future market forecast, the supply of goods will continue to increase, and the support from the supply side will weaken. However, in the situation where factories are operating at a low profit or loss, the supplier’s intention to maintain prices will continue. The actual demand downstream of the terminal follows lightly, and the transmission of industry chain costs is not smooth, resulting in strong bargaining sentiment when entering the market. Business analyst BDO predicts that the domestic BDO market will mainly operate weakly.