In September, China's BDO market remains weak

September 29, News

According to the commodity market analysis system, the BDO market in China has declined. From October 1st to 29th, the BDO price fell from 8400 CNY/ton to 7571 CNY/ton, with a price decrease of 9.86% within the period and a year-on-year decrease of 7.34%.

In September, the BDO market in China continued to decline, mainly due to an increase in BDO supply in China, with general support from the supply side. Although downstream demand increased month-on-month, the pressure of supply and demand still existed, negatively impacting market sentiment, resulting in a generally weak and fluctuating market situation.

Supply side: In terms of facilities, the first phase of Wuheng Chemical has been shut down for maintenance, while facilities at Wanhua Chemical, Shaanxi Heima, and Hengli have been operating at reduced loads. However, other facilities are running stably, leading to an increase in BDO industry supply. The support from the supply end is relatively weak, and the BDO supply side shows bearish factors.

Statistics on the maintenance and operational status of selected manufacturing enterprises:

Cost Perspective:
Regarding raw material calcium carbide, the Chinese calcium carbide market continues to see narrow but steady price increases. Production companies are experiencing smooth shipments, while supply remains tight. Recently, market supply has begun to recover slightly, as previously idled production units have gradually resumed operations—and restrictions on output in Inner Mongolia have also eased somewhat. Downstream buyers remain active, and with the National Day holiday approaching, logistical challenges are putting pressure on supply chains, prompting downstream industries to ramp up their inventory preparations at historically high levels.

As for the raw material methanol, the Chinese methanol market continues to remain weak. As of 10:00 a.m. on September 29, the reference price for methanol in Taicang, China, stood at 2,260 CNY per ton. While calcium carbide prices are trending upward and methanol prices are consolidating within a range, the overall cost dynamics for BDO remain mixed—showing both positive and negative influences.

Demand Side: Key downstream sectors such as PTMEG, PBAT, and TPU have increased their operating rates, leading to higher consumption of raw materials. As a result, BDO demand is expected to benefit from favorable factors.

Market Forecast: With both supply and demand expected to rise, BDO analysts anticipate that the Chinese BDO market will remain largely stable.