According to the Commodity Market Analysis System of Business Society, the domestic BDO market has rebounded. From May 1st to 30th, the price of BDO increased from 7950 yuan/ton to 8107 yuan/ton, with a price increase of 1.98% during the period and a year-on-year decrease of 10.12%.

In the first half of the month, the industry’s capacity utilization rate increased, and the positive support from the supply side weakened, leading to an increase in cautious bearish sentiment among industry players. However, the overall downstream demand follow-up is still acceptable, and under cost pressure, the supply side is stabilizing the market, resulting in a stalemate in the BDO market center of gravity.
In mid month, with the restart of some facilities, the industry’s capacity utilization rate increased, and supply side support weakened, exacerbating the wait-and-see sentiment in the market. Downstream urgent orders are being followed up, and the transmission of industrial chain costs is not smooth, suppressing the trend of pressure. Supply and demand negotiation game, BDO market situation is operating in a wait-and-see manner.
At the end of the month, the domestic BDO market remained stable with a narrow upward trend. Partial device maintenance, reduced industry capacity utilization, and increased supply side support. Manufacturers actively support the market by implementing a policy of reducing sales. Downstream follow-up on demand, trading on the high end of spot small orders, and narrow upward exploration of market focus.
Supply side: The market supply of goods has decreased. At the same time, some devices released maintenance news in mid to late June, and the online auction premium reached a high position of 8200 yuan/ton. The supplier’s June cycle policy contraction is gradually being implemented, and there is a strong intention to actively support the market, limiting market space. The supply of BDO is affected by favorable factors.
On the cost side, the sudden increase in supply has become the main factor causing the decline in carbide prices. The domestic methanol market is running weakly. As of 10:00 am on May 30th, the domestic methanol Taicang price was 2240 yuan/ton. The weak prices of raw materials such as calcium carbide and methanol have been consolidated, and the cost of BDO has been affected by unfavorable factors.
On the demand side, downstream industries such as PTMEG and PBT have seen an increase in production, leading to an increase in raw material digestion and a cautious and positive attitude towards procurement and sales among industry players. Traders have increased the cost of holding goods and are concerned about settlement losses at the end of the month, with mainstream offers leaning towards the mid to high end. Downstream contract orders are being followed up, and the focus of spot small order transactions has shifted upwards. But with the rise in raw material prices, the profit margins of downstream industries have been compressed, and the bargaining sentiment for entering the market has increased. The impact of BDO demand is mixed.
In the future, with a slight increase in supply in the BDO market and an increase in consumption on the demand side due to the restart of maintenance equipment, prices are expected to continue to rise. However, considering that the downstream has not yet followed the rise in raw material prices, the cost pressure has increased, and the ability to accept high raw material prices is limited, which will limit the increase in raw material prices. Business analyst BDO predicts that the domestic BDO market will mainly recover and consolidate.