BDO Market Conditions Remain Relatively Stable

December 05 news

According to the commodity market analysis system, from December 1st to 5th, China’s BDO price remained at 7,385 CNY per ton, down 0.77% month-on-month and 13.98% year-on-year. The Chinese BDO market has seen little price fluctuation, with contract orders continuing to be traded while spot transactions remain subdued. The tug-of-war between supply and demand persists, making it difficult for market prices to rise or fall significantly.

Supply Side: On the facility side, after the restart of the first-phase plant of Xinye, operations have stabilized. Plant loads at Sichuan Tianhua, Shuguang Lvhua, Black Cat, and other plants have fluctuated within a narrow range. As a result, the industry’s capacity utilization rate has slightly increased, but support from the supply side remains weak. Positive factors for BDO supply are waning.

Statistical Summary of Operating Conditions for Some Manufacturing Facilities:

Cost Perspective: Regarding raw material calcium carbide, the Chinese calcium carbide market has generally been on the rise. Production enterprises are experiencing smooth shipments, and the market is characterized by a relatively tight supply situation. As for the raw material methanol, its price has risen somewhat, driven by multiple factors including reduced supply due to operational challenges at major plants in northwest China, orderly release of olefin demand in inland regions, absence of significant inventory pressure among manufacturers, and positive sentiment in the futures market. As of 10:00 a.m. on December 5, the reference price for methanol in Taicang, China, stood at 2,090 CNY per ton. With both calcium carbide and methanol prices trending upward, the cost outlook for BDO is favorably influenced.

Demand Side: The operating rates in downstream industries such as PTMEG and TPU have declined, while those in other downstream sectors remain relatively stable, leading to a slight overall decrease in demand. Meanwhile, with weak market conditions in downstream industries, buyers are showing a strong willingness to negotiate prices for raw materials, putting downward pressure on raw material prices. The demand side for BDO is being weighed down by predominantly bearish factors.

Market Forecast: Currently, the supply-demand dynamics in China’s BDO market remain persistent, making it difficult for the market’s center of gravity to stabilize. BDO analysts predict that volatility in China’s BDO market will be limited.