According to the Commodity Market Analysis System of Shengyi Society, the domestic BDO market experienced narrow fluctuations in July. From July 1st to 30th, the average price of BDO in China first rose from 9035 yuan/ton and then fell to 8942 yuan/ton, with a price drop of 1.03% during the period and a year-on-year price drop of 18.54%.

At the beginning of the month, the domestic BDO market was deadlocked and negotiations were slow. There are many maintenance and replacement devices, and the market supply of goods has decreased. Production enterprises mainly have the intention to maintain prices. Downstream on-demand procurement, and the main downstream PTMEG market is declining. The industry is adopting a cautious and wait-and-see attitude, and the market trading focus is temporarily stable

In mid month, the domestic BDO market operated weakly, with contract orders trading and light spot negotiations. Recently, the overall capacity utilization rate of the industry has decreased, the supply of spot goods in the market has decreased, and the supply side’s stable market mentality continues. But the actual demand downstream is average, and the export price of new production capacity is relatively low. The overall market situation is deadlocked due to the game between supply and demand.

At the end of the month, the domestic BDO market was weak and deadlocked, approaching the settlement cycle, with a mainly cautious and wait-and-see attitude. Follow up on urgent orders downstream of the terminal, the game between supply and demand continues, and the market trading center is deadlocked.

As the end of the month approaches, the domestic BDO market has shifted downwards, with light trading volume in spot orders. The actual follow-up of downstream terminals is average, and the purchasing and sales mentality of operators is bearish, with sporadic small spot orders negotiated for discounts, resulting in a downward shift in the market price range.

Supply side: In terms of equipment, the Shaanxi Black Cat equipment stopped and replaced the agent, but after some maintenance equipment was restarted in the early stage, the negative operation increased. The market supply of goods showed an increasing trend, and the positive support from the supply side weakened. The impact of favorable factors on the BDO supply side has weakened.

On the cost side, raw material calcium carbide: The maintenance of some PVC enterprises in Inner Mongolia has led to an increase in external sales of calcium carbide, and some enterprises have experienced an increase in load. The overall market supply is sufficient, and the calcium carbide market has narrowly declined. In terms of methanol, the domestic methanol market was mainly weak and volatile in July, and the BDO cost side was affected by bearish factors.

On the demand side, downstream industries such as PTMEG spandex, PBT, and PBAT have seen a decline in market conditions, with most downstream terminals experiencing losses in profits. Under cost pressure, there is a bargaining sentiment towards raw material inventory. The demand side of BDO is affected by bearish factors.

Future predictions indicate that most maintenance equipment will restart, leading to a significant increase in market supply and weak support from the supply side. Although the main downstream PTMEG maintenance equipment has also restarted, other downstream operations are average, with limited increase in raw material digestion and intensified pressure on the supply and demand sides. Business analyst BDO predicts that the domestic BDO market will mainly operate weakly.