BDO Market Conditions Show Signs of Recovery

March 6th, News

According to the commodity market analysis system, from March 2 to 6, the BDO price in China rose from 7,371 CNY/ton to 7,557 CNY/ton, with a price increase of 2.52% during the period, up 2.72% month-over-month, and down 5.07% year-over-year. The supply of goods has decreased, while the overall demand downstream has increased. Affected by geopolitical conflicts and other factors, the prices of other raw materials have surged, driving the market for multiple downstream industries to rise. Additionally, online auctions have resulted in premium transactions, and suppliers' determination to support the market has pushed the BDO market to rebound from its bottom.

Supply Side: In terms of facilities, BDO plants such as Hualu Hengsheng, Great Wall Energy, and Inner Mongolia Junzheng have successively shut down for maintenance or catalyst replacement, leading to a reduction in the supply of goods. This has strengthened the support from the supply side. The BDO supply situation is influenced by positive factors.

Statistical Summary of Operating Conditions for Some Manufacturing Facilities:

Cost Perspective: Regarding raw material calcium carbide, the calcium carbide market has experienced a rapid decline. Production enterprises are actively shipping their products, and some companies have accumulated inventory, leading to flexible transaction terms. As for the raw material methanol, the methanol market has shown a significant upward surge. As of 10:00 a.m. on March 2, the reference price for methanol in Taicang, China, was 2,520 CNY per ton. With calcium carbide prices remaining relatively weak and methanol prices trending higher, the impact on BDO costs is mixed—both positive and negative.

Demand Side: After the Lantern Festival, downstream industries have gradually resumed operations, leading to an overall increase in production activity on the demand side and boosting the consumption of raw materials. The demand for BDO is thus benefiting from favorable factors.

Market Forecast: The supply-demand gap continues to narrow, bolstering suppliers’ confidence in maintaining current market conditions, and the market is expected to experience slightly stronger, volatile trading. BDO analysts forecast that the Chinese BDO market is likely to stabilize and rebound.