From May 25th to 29th, the domestic BDO price dropped from 8404 yuan/ton to 8166 yuan/ton, with a price drop of 2.86% during the period, a month on month drop of 4.16%, and a year-on-year increase of 0.73%. The supply and demand pressure in the domestic BDO market still exists, and downstream industries are experiencing a downturn, resulting in a compressed profit margin and a negative market sentiment, driving the market focus to continue to decline.

On the supply side, in terms of equipment, there is no significant change in the overall supply volume, and the support on the supply side is average. The positive impact of BDO supply has weakened.
On the cost side, in terms of calcium carbide, the price of raw material blue charcoal has risen, providing strong support for the cost side of calcium carbide prices. In terms of methanol, the methanol market is operating weakly. The raw material calcium carbide market is improving, while the methanol market is weak, and the impact of BDO cost is mixed.
On the demand side, downstream production of GBL and PU pulp has declined, resulting in a slight reduction in raw material digestion and increased supply and demand pressure in the industry. At the same time, the weak performance of terminal demand has driven downstream industries to continue to decline, compressing profit margins and transmitting bearish sentiment upwards, resulting in strong bargaining sentiment towards raw materials. The demand side of BDO is affected by bearish factors.
The future forecast shows a reduction in supply and stable demand, but the inventory in the early stage needs to be digested, and the bearish purchasing and selling mentality of the main players continues. Insufficient fundamental support and poor transmission of industrial chain costs have led to a mainstream mentality of holding onto the shipment of goods, dragging the market center of gravity downward. Overall, BDO analysts from Shengyi Society predict that the domestic BDO market may decline again.