High level of domestic BDO raw material end market forecast

Recent domestic BDO market raw materials and finished products transport sluggish continued, the downstream demand is sluggish, the industry picking and selling mentality are empty, just a small single trading centre of weak downward.

As of March 24, the mainstream negotiation of spot bulk water in East China was around RMB 27,000-27,500/ton. Blue Mountain Tunhe's April listings and online listings were raised to a high level of RMB 27,850/mt, but the boost to the market was limited, mainly due to negative factors still focused on the supply and demand side.

In addition to the second phase of the Lanshan Tunhe plant and the third phase of the Meike plant to change the agent, other plants are running steadily and the overall supply is relatively abundant, with general support from the supply side.
The demand side maintains just demand

2021-2022 Biodegradable packaging bag products sample enterprise start-up rate change trend chart

Downstream biodegradable packaging bag products sample enterprises start working rate low load, due to the impact of the epidemic in many parts of the country, transport stop, cost increase.

Some enterprises ran out of raw materials and it was difficult to transport them into the factory, so the downstream product enterprises reduced their production lines and stopped working.

At present, the production performance of large and medium-sized enterprises is relatively good, and the start-up rate is generally above 60%, while small and medium-sized enterprises are weak in following up orders and have a low start-up rate. Downstream product enterprises are not hoarding large quantities of goods for the time being, and are still purchasing on demand.

Summary and forecast

At present, PBAT market price is stabilizing, PBAT price is maintained at RMB22,500-22,700/ton (including tax delivered) nearby, at present, most downstream enterprises demand is flat, no new production capacity this week, next week, PBAT price is stabilizing.