BDO Market Trends Stabilize After Decline

August 22nd, according to news,

According to the commodity market analysis system, from August 15 to 22, the average price of BDO in China fell from 7,914 CNY/ton to 7,714 CNY/ton, a decrease of 2.53% within the period, down 11.33% month-over-month, and down 10.15% year-over-year. During the transition between old and new cycles, there is a strong wait-and-see sentiment in the market, with more contract orders being traded and fewer spot deals. However, the supply-demand contradiction continues, leading to cautious bearishness among industry players. Holders are negotiating at the lower end of the market, and the overall market focus is on weak fluctuations.

Supply side, after the restart and subsequent shutdown of the first phase of the new facility, other facilities are operating relatively stably. The overall supply in the industry has increased, but the support from the supply side is moderate. The BDO supply side is affected by negative factors.

Statistics on the operational status of equipment at selected manufacturing enterprises:

Cost Perspective:
Regarding raw material calcium carbide, producers are experiencing smooth shipment flows. Meanwhile, downstream facilities are gradually resuming maintenance shutdowns, leading to a decline in calcium carbide sales volumes and a shift of market inventory toward downstream users. As for the raw material methanol, the Chinese methanol market continues to remain weak. As of 3:00 PM on August 22, the reference price for methanol in Taicang, China, stood at 2,315 CNY per ton. With both calcium carbide and methanol trading in a weak and consolidating market, BDO costs are being weighed down by these bearish factors.

Demand Side: Major downstream sectors like PTMEG, PBT, and PU slurry have seen increased operating rates, while other industries show no significant changes in load. As a result, demand has risen compared to the previous period; however, the industry continues to face an ongoing supply-demand imbalance. Meanwhile, market conditions across many downstream sectors remain weak, putting additional pressure on costs and fueling continued resistance toward high raw material prices. The demand side for BDO remains weighed down by predominantly bearish factors.

Market Outlook: Both supply and demand for BDO are increasing, but the imbalance in the industry continues, negatively impacting market sentiment. Currently, the BDO industry is still experiencing losses, and suppliers are holding back to stabilize the market. As the traditional peak season approaches, the downstream industries are showing improved interest in inquiries, with expectations of early stockpiling. BDO analysts predict that the BDO market in China is likely to stabilize and stop falling.