According to the Commodity Market Analysis System of the Business Society, the domestic BDO market is in a weak position. From June 29th to July 6th, the average price of domestic BDO decreased from 11497 yuan/ton to 11364 yuan/ton. During the week, the price decreased by 1.16%, with a month on month increase of 1.60% and a year-on-year decrease of 41.42%.
Although some equipment maintenance, load reduction, and agent replacement may release the end of July maintenance news, the supply side has a favorable inventory to support the supplier’s market growth; But the demand side is in the traditional off-season, and most downstream industries are under cost pressure, which suppresses procurement enthusiasm. The pressure on supply and demand has increased, and holding manufacturers have discussed shipping attitudes, resulting in a downward trend in the focus range of actual orders.
On the supply side and in terms of equipment, the news of a major inspection at the end of July showed an increase in positive support from the supply side; Online bidding is trading at a relatively high level, and the supplier’s intention to defend the price still exists. Short term BDO supply is a positive factor.
On the cost side, raw materials for calcium carbide: The domestic calcium carbide market continues to be weak. On July 6th, the benchmark price for calcium carbide in Shangshang Society was 2850.00 yuan/ton, a decrease of -1.16% compared to the beginning of this month (2883.33 yuan/ton). In terms of methanol, supply is still abundant, demand changes are limited, and costs may temporarily remain stable. The domestic methanol market is operating in a weak trend. On July 6th, the benchmark price of methanol for Shangshe was 2137.50 yuan/ton, a decrease of -1.95% compared to the beginning of this month (2180.00 yuan/ton). Recently, the market for calcium carbide and methanol has continued to be sluggish, and there is currently no significant improvement in the cost of BDO.
On the demand side, the performance of terminal demand is not good, and the upward transmission of orders is not smooth, which suppresses the enthusiasm of downstream industries to start work. The main focus is on maintaining contracts for raw material procurement, with scattered spot orders following up and strong bargaining sentiment. Short term BDO demand side is relatively short.
In the future market forecast, BDO device maintenance and restart coexist, but the overall market supply has slightly decreased, and the supply side has a certain advantage, supporting the supplier’s strong market. There has been no significant improvement in terminal demand, suppressing downstream procurement enthusiasm. BDO analysts from Business Society predict that the domestic BDO market may fluctuate and consolidate.
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