The BDO Market Was Consolidating

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According to the commodity market analysis system of SunSirs, domestic BDO prices remained at 7,716 RMB/ton from July 1 to July 7, marking a month-on-month decline of 4.54% and a year-on-year drop of 11.67%. Both supply and demand showed an upward trend; market participants maintained a cautious wait-and-see attitude, with trading primarily driven by essential contract orders while spot market negotiations remained sluggish. Amid the ongoing tug-of-war between supply and demand, the domestic BDO market fluctuated within a narrow range.

On the supply side, production units—including Wuheng Chemical’s Phase I plant, Xinjiang Xinye, and Xinjiang Meike—have successively restarted, leading to an increase in supply volume. The BDO supply outlook is influenced by bearish factors.

Statistics on the operating status of selected production facilities:

Regarding costs, the calcium carbide market saw supply tightening due to strained power supplies; meanwhile, a reduction in concentrated maintenance shutdowns downstream led to a partial recovery in market demand. With supply clearly falling short of demand, calcium carbide prices rose rapidly, and inventories were depleted. In contrast, methanol prices dropped sharply. With calcium carbide prices trending upward and methanol prices plunging, the impact on BDO costs was mixed.

On the demand side, downstream end-user demand has been lackluster, placing supply-demand pressure on various downstream sectors. A desire to move inventory has prompted price concessions in actual transactions, dragging down market prices across most downstream segments; consequently, there is resistance to high raw material costs, with activity limited to the fulfillment of existing contracts and sluggish spot market negotiations. Overall, BDO demand is being influenced by bearish factors.

Market outlook

With feedstock calcium carbide prices trending firm and methanol fluctuating at low levels, cost pressures on BDO persist; meanwhile, operating rates in the downstream PTMEG, PBT, and PU slurry sectors have risen, driving increased demand. Overall, SunSirs BDO analysts anticipate that the domestic BDO market will likely see narrow-range adjustments.

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