According to the Commodity Market Analysis System of Business Society, the domestic BDO market did not fluctuate significantly in May. From May 1st to 31st, the average price of domestic BDO decreased from 9071 yuan/ton to 9028 yuan/ton, with a price drop of 0.47% during the cycle and a year-on-year decrease of 20.10%.

After the holiday, the domestic BDO market has experienced a downward trend, and there have been few reports of spot negotiations. After the holiday, the market news is light, and there is a lack of significant positive news on both the supply and demand sides. Business owners have a bearish purchasing and sales mentality, dragging down small orders in the market.

In mid month, the domestic BDO market is weak and wait-and-see, with little talk about spot trading. Although there has been an increase in maintenance and replacement equipment, the supply side support has been strengthened, and the supplier is willing to maintain prices. However, the actual demand downstream of the terminal is average, and supply and demand pressure still exists.

In the latter half of the month, the domestic BDO market was weak and deadlocked, with few spot negotiations. The increase in device maintenance and agent replacement has led to a significant decline in industry capacity utilization, and there is a certain positive outlook on the supply side. The supplier has a stable market mentality. The overall downstream load has also declined, leading to a reduction in the digestion of raw materials.

As the end of the month approaches, the domestic BDO market is operating weakly, with light spot and actual trading. There are no significant changes in the equipment, overall support is still acceptable, and the supplier’s intention to maintain prices continues. The actual performance of downstream demand in the terminal is average, and contract orders are maintained for follow-up. The supply and demand sides are in a tug of war, and the BDO market is weak and deadlocked.

Supply side: In terms of equipment, the overall construction of the BDO industry has increased, and the supply side support is currently average. However, some devices have released maintenance news in late April and early May, leading to an expected decrease in market supply in the later period; And currently, the industry’s profits are meager or even at a loss, and the supplier’s price mentality continues. The supply side of BDO is influenced by favorable factors.

On the cost side, raw material calcium carbide: The domestic calcium carbide market continues to be weak, with an increase in supply and a certain accumulation of inventory in production enterprises. Downstream centralized maintenance has led to a decrease in demand. In terms of methanol, the price increase caused by the tight supply of goods at the port is gradually being digested, market supply is increasing, downstream receiving sentiment is average, and rigid demand procurement is the main focus. The cost side of BDO is influenced by bearish factors.

On the demand side, due to poor demand follow-up or maintenance of storage equipment, downstream industries such as PTMEG, PBT, PU slurry have reduced production, resulting in a decrease in raw material digestion. At the same time, the main downstream industries such as PTMEG spandex industry chain, PBT, PBAT, TPU, etc. saw a decline in market prices, leading to an increase in cautious bearish sentiment on the market. However, given the current low market prices, there is limited room for profit margins; Moreover, downstream spot procurement intentions are not strong, and holding companies are delivering more contract orders. The overall market situation is weak and stagnant, and major players continue to pay attention to the impact of changes in supply and demand. The demand side of BDO is affected by bearish factors.

According to future predictions, as maintenance equipment is gradually restarted, the supply of goods in the market will increase, and the support from the supply side will weaken. As the PTMEG device restarts and new production capacity is put into operation downstream, the amount of raw material digestion also increases. But supply and demand pressures still exist. BDO analysts from Business Society predict that the domestic BDO market is mainly weak.