BDO Market Trends Remain Mostly Cautious

November 21, news

According to the commodity market analysis system, from November 17 to 21, the BDO price in China remained at 7,442 CNY/ton, with a week-on-week decrease of 0.31% and a year-on-year decrease of 15.42%. The BDO market in China was mainly characterized by a wait-and-see attitude. As the settlement cycle approached, most traders were waiting for the new monthly policies, and the atmosphere for actual transactions was light. Fluctuations in both supply and demand were limited, and negotiations continued, leading to an overall stalemate in the market.

Supply side, in terms of facilities, the plants of Shaanxi Heimao, Inner Mongolia Huaheng, and Yanchang have shown minor fluctuations, while other facilities are operating relatively stably. The market supply volume has slightly decreased compared to the previous period, but it remains relatively abundant. The support from the supply side is currently moderate. The favorable factors for BDO supply have weakened.

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

Cost Perspective:
Regarding raw materials, calcium carbide producers are experiencing smooth shipments, providing strong cost support and reinforcing their willingness to maintain higher prices. As for methanol, the Chinese methanol market is currently consolidating on the weaker side. As of 10:00 a.m. on November 21, the reference price for methanol in Taicang, China, stands at 1,995 CNY per ton. With both calcium carbide and methanol markets trending downward, BDO costs are being weighed down by these negative factors.

Demand Side: Downstream, apart from a decline in operating rates within the PBT industry, other sectors showed no significant changes in load levels, leading to an overall reduction in raw material consumption. The demand side for BDO is being weighed down by bearish factors.

Market Forecast: On the supply side, some facilities are operating slightly below capacity, leading to a marginal increase in output. Meanwhile, downstream industries are experiencing a slight contraction in demand, though most continue to honor contractual orders. Spot purchases remain subdued, with negotiations focused on price adjustments. BDO analysts anticipate limited volatility in China's BDO market.