According to the monitoring of the business community, the domestic BDO market has warmed up due to the favorable support of multi unit maintenance and factory bidding premium. From December 9 to 16, the average price of domestic BDO manufacturers at the beginning of the week was 9436 yuan/ton, and at the weekend was 9590 yuan/ton. During the cycle, the price rose 1.63%, fell 14.37% month on month, and fell 69.06% year on year. The manufacturer has a strong intention to support the market, but the downstream industry is mainly wait-and-see, maintaining contract follow-up, just needing small spot purchase, and the focus of delivery and investment is weak.

On the cost side, raw calcium carbide: the business community monitored that the domestic calcium carbide price fell by a narrow margin, with the price at the beginning of the week at 3766 yuan/ton, and at the weekend at 3701 yuan/ton, a drop of 1.73%. In terms of methanol, the business community monitored that the price of domestic methanol in East China ports rose first and then fell in a narrow range, 2680 yuan/ton at the beginning of the week, 2655 yuan/ton at the weekend, and the price fell by 0.90% during the cycle. In the near future, there are few positive factors in the carbide and methanol markets, and the BDO cost support is weak.

On the supply side, the overall commencement of the industry dropped to less than 70%, the spot supply in the market was reduced, and the production enterprises were reluctant to sell, which boosted the factory’s auction price to 9550 yuan/ton. BDO supply level is obviously favorable.

On the demand side, the downstream opening rate of the terminal declined, and the market of several downstream products was weak and volatile, maintaining the small orders just needed to follow up and negotiate prices. The operating rate of downstream industries, such as PTMEG, PBT and TPU, remained at about 60%, and the overall incentive to buy gas was limited. The overall change in BDO demand was slightly positive.

The future forecast shows that the overall supply of the domestic BDO market has not changed much in the short term, but the industry is still in a loss state, and the manufacturers’ price keeping mentality continues. The downstream industry maintains contract procurement, and resists high prices when the cost transmission is not smooth. Business agency BDO analysts expect that the domestic BDO market will be dominated by sideways consolidation.