Market overview for the year

Domestic BDO Price Trend Chart 2018-2020

In May, the domestic DMF market fluctuated. On May 6th, the 180,000-ton/year DMF plant in Jiangshan, Zhejiang Province was shut down due to policy, no longer rebuilt in different places, and the supply side was reduced, which was beneficial to the market mentality. At the beginning of the month, the main factories had obvious intentions to raise prices, and they all raised their quotations one after another by 200-500 CNY/ton. However, after Jiangshan ceased production, it was mainly due to digestion of inventory within the month, and downstream demand was weak and difficult to change. There was no obvious support for the supply and demand side, and the market's upward performance was weak. After mid-term, with the increase in the inventory of some DMF manufacturers, the shipments were narrowly narrowed for a short period of time, and the focus of market negotiations fell slightly. However, after the factory staged the profit arrangement, there was little intention to continue to decline. Traders were mainly cautious in their mentality, and local offers rebounded slightly.

No.1 Overall market analysis

1、Factory installation DMF this month

By the end of the month, the overall operating rate of domestic DMF enterprises was about 69%. Early in the year, Yangzi BASF 40,000 tons per year, Henan Junhua 30,000 tons per year plant resumed normal start-up, other parts of the factory start-up load has been increased, DMF the overall level of start-up in the industry has increased. At the end of April, Yangzi BASF's 40,000-ton/year plant is scheduled to stop and overhaul, with DMF operating rate expected to be between 65 and 70 per cent by the end of April.

2、Raw material cost and change analysis

Methanol:

 In June, the overall domestic overhaul in the Mainland has been reduced, and the release of some methanol plant production capacity has put pressure on the supply side. Port imports are not reduced, inventories are high, and tank storage capacity is still tight. Factors such as the overall demand end are expected to remain short-term. There was no obvious positive release. However, considering that the cost is facing the bottom of the price or forming a certain support, the overall downward space is limited.

3、Main downstream start-up analysis

This month, the domestic slurry market weakened, as raw material prices continued to fall in March, slurry manufacturers with the cost center of gravity decline. Slurry manufacturers were affected by weak terminal demand in the month, the level of start-up has declined, the market is still poor expectations for May.

4. Next month's Market Trend Forecast

No.3 Views and Summary

Overall, Jiangshan's inventory digestion is completed, and the supply side is well supported. Under the control of DMF manufacturers' inventory, or the intention to sell at a high price, it is not ruled out that the quotation continues to test a slight increase. However, there is no obvious expectation of improvement in downstream demand, and the cost side is also supported. The domestic DMF market is expected to rise steadily in June.