According to the Commodity Market Analysis System of Shengyi Society, the domestic BDO market has fallen. From July 1st to 31st, BDO prices fell from 8735 yuan/ton to 8400 yuan/ton, with a price drop of 3.84% during the period and a year-on-year price drop of 5.92%.

At the beginning of the month, the domestic BDO market remained stagnant after rising. Restarting production capacity exceeds maintenance capacity, resulting in a significant increase in supply and weakened supply side support; However, the demand in downstream industries has decreased, and the supply is significantly greater than the demand, exacerbating the wait-and-see sentiment in the market.
In the first half of the month, the supply remained abundant. The demand in downstream industries has increased, but the supply is still higher than the demand, and the pressure of supply and demand has intensified. Industry players have a strong wait-and-see attitude, and spot trading is limited. The supply-demand negotiation game has resulted in a relatively stable focus in the domestic BDO market.
In mid month, some devices were restarted and the supply increased. However, the main downstream industries have experienced a decline in production, resulting in a reduction in raw material digestion and an increase in supply and demand pressure. As a result, the domestic BDO market atmosphere is relatively weak.
As the end of the month approaches, the domestic supply of BDO has increased. However, the main downstream industries have experienced a decline in production, and the amount of raw materials digested continues to decrease. The contradiction between supply and demand has intensified, and traders are holding a selling and shipping mentality, dragging the market center of gravity down continuously.
Supply side: The industry’s supply continues to increase, but there is no positive support from the supply side. BDO supply and sales are affected by negative factors.
On the cost side, raw material calcium carbide: the domestic calcium carbide market is stable with small fluctuations. The unstable market operation has led to a reduction in supply, but the temporary recovery of demand has accelerated the consumption of waiting vehicles in the market. Raw material methanol: The domestic methanol market has rebounded, and as of 10:00 am on July 31st, the reference price for domestic methanol in Taicang is 2410 yuan/ton. The fluctuation and consolidation of raw materials such as calcium carbide and methanol have a mixed impact on the cost of BDO.
On the demand side, the downstream PTMEG, GBL-NMP, PBAT industries have seen a decrease in load, while PBT, TPU and other industries have seen an increase in production. However, the overall production on the demand side has declined, leading to a continued reduction in raw material digestion and exacerbating the imbalance between supply and demand structure in the industry. In addition, under the traditional off-season effect, terminal demand is light, and under the pressure of supply and demand, some downstream industries such as THF, PBT, GBL-NMP, and spandex have seen a decline in market prices, resulting in a compression of profit margins and severe pressure on raw material prices. The demand side of BDO is affected by bearish factors.
The future forecast shows that supply will still be significantly higher than demand, and the imbalance between supply and demand will intensify. Moreover, downstream industries are experiencing losses, resulting in severe pressure on raw material prices. The market lacks favorable support. Business analyst BDO predicts that the domestic BDO market may continue to weaken.