According to the Commodity Market Analysis System of Shengyi Society, the domestic BDO market is weak and stagnant. From December 1st to 30th, MTBE prices fell from 8642 yuan/ton to 8485 yuan/ton, with a price drop of 1.82% during the period and a year-on-year price drop of 11.01%.

In the first half of the month, with the restart of the agent exchange device, the industry’s capacity utilization rate has significantly increased. However, some of the new production capacity is outsourced for driving materials, and online sales are relatively high, leading to a price conscious attitude among suppliers. The supply-demand game continues, and the domestic BDO market is deadlocked.

In mid month, the domestic BDO market remained cautious and the trading focus did not fluctuate significantly. Recently, the supply side support has been average, but the inventory pressure on the market is controllable, and the supply side’s stable market mentality continues. The follow-up of downstream contracts is still acceptable, while spot trading is light and negotiated. The game between supply and demand is intensifying, and the market is caught in a dilemma of ups and downs.

At the end of the month, the domestic BDO market remained weak and deadlocked, with frequent fluctuations in equipment and a significant decline in industry capacity utilization. Supply side support increased, and the main intention was for suppliers to support the market. The overall demand downstream of the terminal is still acceptable, but under cost pressure, there is little fluctuation in the market due to bargaining over raw materials and supply-demand negotiations.

Supply side: In terms of equipment, the capacity utilization rate of the BDO industry has significantly declined, leading to a reduction in market supply, which is somewhat favorable for the supply side. And the factory’s online auction reached a high of 9000 yuan/ton, indicating a strong sense of market stability among suppliers. The supply side is influenced by favorable factors.

On the cost side, raw material calcium carbide: The domestic calcium carbide market has seen a narrow upward trend, with production enterprises shipping smoothly and overall downstream procurement enthusiasm increasing. Raw material methanol: The domestic methanol market continues to rise. As of 3:00 pm on December 30th, the domestic methanol Taicang price is 2750 yuan/ton. The raw material calcium carbide market is fluctuating and consolidating, with methanol prices rising and BDO costs being influenced by favorable factors.

On the demand side, the downstream PTMEG and PBAT industries are experiencing a decline in load, while other industries are operating relatively steadily, and the overall digestion of raw materials is still acceptable. However, many downstream industries have suffered long-term losses, and their ability to accept high prices of raw materials is weak. They have maintained contract order trading, and spot negotiations have been sluggish. The demand side of BDO is affected by bearish factors.

In the future forecast, the overall industry load is not high, and there is some support from the supply side. The supply side’s support for the market mentality continues. Follow up on downstream contract orders, weak intention to purchase spot goods, and focus more on sales policies for the new year. Supply and demand game, Business Society’s BDO analyst predicts that the domestic BDO market will mainly focus on consolidation and observation.