According to the Commodity Market Analysis System of Shengyi Society, from February 14th to 21st, the average price of BDO in China fell from 8371 yuan/ton to 8285 yuan/ton, with a price drop of 1.02% during the period, a month on month drop of 1.53%, and a year-on-year drop of 12.12%. The domestic BDO market is weak and deadlocked. Approaching the settlement cycle, there is a strong wait-and-see sentiment, with contract orders trading and weak spot negotiations.

On the supply side, BDO’s new production capacity has not yet been put into operation and increased in volume, leading to an improvement in industry capacity utilization and a weakening of supply side support. However, if there are plans for equipment shutdown or maintenance in the later stage, and the industry suffers long-term losses, the supplier’s intention to maintain the price will continue. The supply of BDO is affected by favorable factors.

On the cost side, raw material calcium carbide: Currently, there is an overall abundance of calcium carbide waiting to be unloaded downstream, and downstream procurement prices are stable and wait-and-see. The market is in a stalemate, and the calcium carbide market is stabilizing and consolidating in the short term. Raw material methanol: The growth rate of the domestic methanol market is limited. As of 10:00 am on February 21st, the domestic methanol Taicang price is 2598 yuan/ton. The raw material calcium carbide market is consolidating, methanol prices are consolidating, and the impact on BDO costs is mixed.

On the demand side, the overall downstream load of the terminal is still acceptable, but most downstream costs are under pressure, with a focus on following up on raw material contract orders. Some spot purchases are made at low prices, suppressing the trend of raw materials. The demand side of BDO is affected by bearish factors.

In the future market forecast, some devices will be shut down for maintenance, and there will be some favorable conditions on the supply side, with a focus on stabilizing the market mentality of the supply side. However, downstream demand follow-up is average, and the transmission of industrial chain costs is not smooth, resulting in strong bargaining sentiment towards raw materials. The short-term market lacks significant support. Business analyst BDO predicts that the domestic BDO market is mainly weak.