BDO Monthly Report in March

Reduction of negative production from plant stock pressure affected by the epidemic

Low downstream start-up

Domestic BDO Price Trend Chart 2018-2020

Domestic BDO markets were weak in March.China's average operating rate of BDO plants in March was about 37.8%, down 15.7% from a month earlier, maintaining a low negative supply reduction in order to stabilize the market. But downstream also started low, limited demand for raw materials, driving the market center of gravity continue to explore.

Future market forecast: the current domestic BDO market supply and demand imbalance situation is difficult to change, although the supply side is now reducing production prices, but downstream demand has not yet recovered under the limited consumption of raw materials, so Zhongyu expects the short-term domestic BDO market may remain weak, wait and see downstream start-up situation.

No.1 Overall market analysis

1.BDO plant installation this month

This month, the alkyne aldehyde plant operating rate of 53.5%, the monthly output of 94000 tons.

2.Raw material cost and change analysis

Methanol: March, China's methanol market center of gravity depth downward. The national average price this month is 1765 CNY/ton, compared with -12.01%, compared with -28.34%. In raw materials, the center of gravity of methanol market in China is down in depth this month, the current methanol market price has been relatively low, the upstream production cost pressure gradually highlights, or will form a support for the bottom of methanol. But the short-term situation of supply and demand game may be difficult to ease, in April, China's methanol market or the overall weak shock, there is a moderate rebound space in the middle and later period.

Calcium carbide: March calcium carbide market showed a steady downward trend, down 7.71% month on month, down 9.09% month on month.This month, the domestic calcium carbide market mainly fell, the international environment rose to limit the main warming of trading, the market as a whole in the supply and demand game stage, in April calcium carbide demand performance or still weak, the current domestic market atmosphere is gradually stable, coupled with the international epidemic may start to improve in the middle of this month, when the market may usher in an inflection point. Carbide prices are expected to rebound after falling in April.

3.Main downstream start-up analysis

Under the influence of the epidemic PBT industry, PTMEG industry to reduce the burden of production, BDO downstream overall start lower. .

4. market trend forecast for next month

No.2 Views and Summary

Future market forecast: the current domestic BDO market supply and demand imbalance situation is difficult to change, although the supplier is now reducing production prices, but downstream demand has not yet recovered under the limited consumption of raw materials, so it is expected that the short-term domestic BDO market may remain weak, wait and see downstream start-up situation.