According to monitoring by the Business Agency, the domestic BDO market continued to decline in March. From March 1st to 29th, the average price of domestic BDO fell from 13816 yuan/ton to 10820 yuan/ton, with the price falling 21.69% during the cycle and 60.32% year-on-year.

At the beginning of this month, the main production enterprises Xinjiang Xinye and Guotai Xinhua Devices were successively restarted, with a large increase in supply side, and there was a negative situation at the BDO supply level. In the middle of June, factory bidding was on the high side, and production enterprises were in the market. However, due to the sluggish follow-up of terminal demand, most downstream industries are under pressure on costs, with weak purchasing intentions for raw materials and serious price pressures. The decrease in supply cannot offset the sluggish demand, and the market focus continues to decline. Near the end of the month, terminal demand remained sluggish, dragging down the market in most downstream industries. With poor cost transmission, enthusiasm for raw material procurement was not high, and prices were severely depressed. The BDO market continued to decline, with traders generally offering lower prices.

In terms of cost, raw calcium carbide: On March 29, the benchmark price of calcium carbide for the business community was 3116.67 yuan/ton, a decrease of -10.53% compared to the beginning of this month (3483.33 yuan/ton). In terms of methanol, on March 29, the benchmark price of methanol for the business community was 2540.00 yuan/ton, a decrease of -7.41% compared to the beginning of this month (2743.33 yuan/ton). Recently, the market prices of calcium carbide and methanol have been operating at low levels, and the cost of BDO is worrying.

On the demand side, the PTMEG-spandex industry chain has started at a high level, but terminal demand is weak, inhibiting procurement enthusiasm. The capacity utilization rate of the PBT industry has declined, and the digestion of raw materials has decreased; The PU slurry and TPU industries in the polyurethane field have started construction around 5-60%, maintaining just needed orders. The short-term BDO demand side is short.

In the future, it is predicted that some early maintenance devices will be restarted, and the domestic BDO market supply will increase. However, there is no good expectation for the downstream demand of the terminal, and the contradiction between supply and demand continues. BDO analysts from the Business Agency predict that the domestic BDO market may still decline.