According to the Commodity Market Analysis System of Shengyi Society, from August 5th to 9th, the average price of BDO in China fell from 8828 yuan/ton to 8778 yuan/ton, with a price drop of 0.57% during the period and a year-on-year decline of 22.41%. Recently, some of the pre maintenance equipment has been restarted and operated at a reduced load, resulting in weakened supply side support. Although the downstream industry has also seen an increase in load, there is still pressure on supply and demand within the market. Industry players have a bearish attitude towards purchasing and selling, and negotiations are underway to offer discounts on spot orders. As a result, the domestic BDO market continues to decline.

On the supply side, the supply of goods in the market has increased, but the support on the supply side has weakened. The favorable factors for BDO supply have weakened.

On the cost side, raw material calcium carbide: The calcium carbide market is in a stage of oversupply. Due to different operating loads of enterprises and regional differences in inventory, some enterprises have always had high inventory levels. In order to promote shipment, the factory price has been lowered. Raw material methanol: The methanol market is operating weakly. As of 10:00 am on August 2nd, the domestic price of methanol in Taicang is 2460 yuan/ton. The BDO cost side is affected by bearish factors.

On the demand side, the downstream PTMEG and PBAT industries have increased, while the load of PBT, TPU and other industries has declined. The overall demand side has increased the amount of raw material digestion, but the demand increment is not as high as the supply increment, and the supply and demand pressure still exists. The main terminal spandex industry is experiencing a downturn, while most other downstream industries are in a loss making state, leading to strong bargaining sentiment towards raw materials. The demand side of BDO is affected by bearish factors.

In the future market forecast, with the restart of maintenance equipment in the early stage and the expected production of new industries and new production capacity, the supply side support is weak. The overall load of downstream industries has increased, leading to an increase in raw material digestion, but the demand increment is not as high as the supply. Business analyst BDO predicts that the domestic BDO market will continue to operate weakly.