BDO Market Trends Continue to Rise

March 13 news

According to the commodity market analysis system, from March 9 to 13, China's BDO price rose from 7,557 CNY/ton to 7,757 CNY/ton, with a price increase of 2.65% during the period, up 5.23% month-over-month, and down 2.60% year-over-year. China's BDO supply continued to decrease, with increased cost pressures, and high auction prices supported suppliers' firm market stance. However, actual downstream demand was average, with only essential orders following up and resistance to high prices. The overall market trend moved slightly upward, but the actual transaction volume was limited.

Supply Side: In terms of facilities, although the Great Wall Energy plant has restarted after a catalyst change, the Ningxia Weiyuan plant has shut down. The Hualu and Junzheng plants are still under maintenance, leading to a low capacity utilization rate in the industry. This situation provides supportive factors for the supply side. The BDO supply side is influenced by these favorable factors.

Statistical Summary of Operating Conditions for Some Manufacturing Facilities:

Cost Perspective: Affected by regional conflicts and shifts in supply-demand dynamics, the prices of raw materials such as calcium carbide, methanol, natural gas, and maleic anhydride have risen, increasing cost pressures on the BDO industry. Meanwhile, auction activities have intensified throughout the week, with many transactions occurring at higher prices, bolstering suppliers’ confidence in maintaining current market prices. The upward trend in the prices of calcium carbide and methanol is providing a favorable impact on BDO’s cost structure.

Demand Side: Downstream industries, driven by rising raw material prices, have seen an upward trend in market conditions across many end-use sectors. However, the transmission of cost increases has been sluggish, resulting in little change in the operating rates of downstream industries, which are largely focused on digesting existing raw material inventories. The demand side for BDO is benefiting from favorable factors.

Market Forecast: As BDO prices rise, downstream demand becomes less resilient, and the balance between supply and demand intensifies. BDO analysts expect the Chinese BDO market to remain volatile and consolidate for the time being.