According to the Commodity Market Analysis System of Shengyi Society, from July 8th to 12th, the average price of BDO in China remained at 9042 yuan/ton, a year-on-year decrease of 19.87%. The domestic BDO market is running weakly, with contract orders trading and light spot negotiations. Recently, the overall capacity utilization rate of the industry has decreased, the supply of spot goods in the market has decreased, and the supply side’s stable market mentality continues. But the actual demand downstream is average, and the export price of new production capacity is relatively low. The overall market situation is deadlocked due to the game between supply and demand.

On the supply side and in terms of equipment: Although Inner Mongolia Junzheng’s new production capacity is running at a negative level, the Henan He Coal plant stopped for maintenance on July 10th. Coupled with the fact that the previous maintenance equipment has not yet been restored, the overall capacity utilization rate of the industry has dropped to below 60%. In the short term, there are certain positive factors on the supply side, and the supplier’s market stability mentality is the main focus. The supply side of BDO is affected by favorable factors.

On the cost side, raw material calcium carbide: Due to losses, the operating rate of calcium carbide production enterprises continues to decline. Downstream enterprises in some regions have completed maintenance, and there is an expectation of increased demand. In the short term, there may be slight regional differences in the domestic calcium carbide market. Raw material methanol: The methanol market is experiencing weak consolidation. As of 10:00 am on July 12th, the domestic methanol Taicang price is 2555 yuan/ton. The BDO cost side is affected by bearish factors.

On the demand side, the main terminal product spandex is forced to offer discounts and promotions due to sales and high inventory pressure, resulting in a decline in market conditions and increased losses. There is a strong bargaining sentiment towards the raw material PTMEG. The load of other downstream industries is relatively low, and there is no significant improvement in raw material consumption. The demand side of BDO is affected by bearish factors.

In the future market forecast, some BDO units will restart and the supply of goods will increase, but the overall load will still be below 60%, and the supplier’s market stability mentality will continue. The main terminal product spandex market is relatively low, and other downstream companies also urgently need to follow suit. The supply-demand game continues, and BDO analysts from Shengyi Society predict that the domestic BDO market will have limited fluctuations.