According to the Commodity Market Analysis System of Business Society, the domestic BDO market continues to be weak. From February 1st to 28th, BDO prices fell from 8400 yuan/ton to 8285 yuan/ton, with a price drop of 1.36% during the period and a year-on-year price drop of 12.12%.

In the first half of the month, the domestic BDO market saw a weak consolidation. The industry has a low capacity utilization rate and is experiencing long-term losses. The overall downstream load of the terminal has increased, leading to an increase in the digestion of raw materials. Both the supply and demand sides are supported, and the supply side maintains a stable market mentality.

In mid month, the domestic BDO market remained weak and deadlocked. Approaching the settlement cycle, there is a strong wait-and-see sentiment, with contract orders trading and weak spot negotiations.

At the end of the month, the domestic BDO market remained stagnant after a decline. At the beginning of the new cycle, the wait-and-see sentiment of industry players continues, and actual trading volume is light. The downstream demand follow-up is average, but in the later stage, new production capacity is put into operation and the enthusiasm of the cargo holders to operate is not high, and actual orders are negotiated for discounts. But there is some support on the supply side, and the supplier’s price control limits the downward space of the market.

Supply side: In terms of equipment, the industry’s capacity utilization rate has decreased, while supply side support has increased. 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 the strengthening of power restrictions in Inner Mongolia, accelerating the destocking of enterprises, and overall smooth shipments. Raw material methanol: The domestic methanol market is experiencing a narrow consolidation. As of 10:00 am on February 28th, the domestic methanol Taicang price is 2625 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 overall load of downstream industries has not significantly increased, and the incremental demand for raw materials is limited. And the expected storage and shutdown of some downstream PTMEG equipment in the future, as well as the expected storage of new BDO production capacity, may increase supply and demand pressure. Under the cost pressure of most downstream industries, there is severe bargaining when entering the market. The demand side of BDO is affected by bearish factors.

Future forecast: Supply side support still exists, and the industry is experiencing long-term losses, indicating a continued stable market mentality among suppliers. However, there has been no significant change in the downstream industry load, and BDO analysts from Shengyi Society predict that the domestic BDO market will mainly focus on consolidation and observation.