BDO Market Trends Remain Stagnant and Consolidating

September 12th, news:

According to the commodity market analysis system, from September 5 to 12, the average price of BDO in China remained at 7,542 CNY/ton, a decrease of 8.97% month-over-month and 0.75% year-over-year. The BDO market is in a stalemate, with overall production in downstream industries increasing, leading to higher consumption of raw materials. Factories are maintaining a reasonable shipping pace, and due to long-term losses in the industry, suppliers are actively working to stabilize the market. Negotiations between supply and demand continue, and the market remains in a stalemate.

Supply side, due to certain reasons, the facility of Wanhua Chemical has reduced its load, while some previously maintained facilities have resumed stable operation after restart, leading to a slight increase in overall production. The supply end support is relatively moderate. The BDO supply side is affected by negative factors.

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

Cost Perspective, raw material calcium carbide: The Chinese calcium carbide market is on the rise, with smooth shipments from production enterprises and a generally tight supply in the market. Raw material methanol: The Chinese methanol market continues to be weak. As of 10:00 PM on September 11, the reference price for methanol in Taicang, China, was 2,285 CNY per ton. With an increase in the price of calcium carbide and a weak consolidation in methanol, the impact on BDO cost perspective is mixed.

Demand Side: With some maintenance units restarting or increasing their load, downstream industries such as PTMEG, GBL-NMP, PBAT, and PU slurry have seen an uptick in capacity utilization rates, leading to a steady rise in raw material consumption. Meanwhile, most companies continue to honor contract orders, while spot purchasing intentions remain subdued amid cost pressures. Overall, the demand side for BDO is weighed down by bearish factors.

Market Forecast: The BDO market is expected to see reduced supply and rising demand, with ongoing negotiations and price battles keeping the market in a stalemate. Several plants are anticipated to undergo maintenance, further tightening BDO supply. Meanwhile, industry-wide losses persist, prompting suppliers to actively stabilize prices. Downstream sectors, meanwhile, are ramping up operations overall, boosting their consumption of raw materials—but at the same time, they remain cautious about paying premium prices, which is putting downward pressure on raw material trends. BDO analysts predict that the Chinese BDO market will likely remain in a consolidation phase, with traders adopting a wait-and-see approach.