According to the Commodity Market Analysis System of Business Society, the domestic BDO market continued to be weak in December. From December 1st to 26th, the average price of domestic BDO dropped from 9628 yuan/ton to 9535 yuan/ton, with a price drop of 0.96% during the cycle and a maximum amplitude of 1.11%. The price fell by 1.39% year-on-year.

At the beginning of the month, the domestic BDO market was weak and deadlocked, and small orders were needed for negotiation. The stable operation of the equipment and the gradual launch of new production capacity products in the market have a bearish market mentality. However, due to the supplier’s control over the quantity of spot goods, the holding manufacturers have a cautious attitude towards trading, and mainstream quotations are stable. The downstream of the terminal follows up on demand, and the supply-demand game continues, resulting in an overall market stalemate.

In the first half of the month, the domestic BDO market was weak and declining, and small orders were needed for negotiation. The overall supply in the market is relatively abundant, while the downstream demand at the end is relatively average, and there is a strong bargaining sentiment towards raw materials under cost pressure. The attitude of the shipper towards shipping has increased, and negotiations for actual orders and discounts are underway. But with online bidding and high procurement transaction prices, business operators have become cautious, and the market has entered a weak stalemate.

In mid month, the domestic BDO market was weak and deadlocked, and small orders were needed for negotiation. Recently, some equipment maintenance, load reduction, and the release of new production capacity have been less than expected, resulting in average overall market supply; At the same time, the transaction price of online auctions is relatively high, and the supplier mainly maintains the price. However, the downstream demand of the terminal is generally followed up, and the supply and demand negotiations are stable, resulting in a weak overall market situation.

As the end of the month approaches, due to equipment shutdown and maintenance, as well as load reduction, the market’s spot supply is average, and suppliers have a strong intention to maintain prices. However, there has been no significant change in downstream demand at the terminal, and many businesses have remained stable and cautious, resulting in a stagnant market focus.

On the cost side, raw material calcium carbide: raw material calcium carbide: the upstream blue charcoal market is consolidating at a low level, the downstream PVC market prices have slightly increased, and the calcium carbide market is rising narrowly. As of December 26th, the benchmark price of Shengyishe calcium carbide is 2983.33 yuan/ton. In terms of methanol, the domestic methanol market fluctuated and consolidated in December, falling first and then rising, with a monthly decline of 1.50%. In recent times, the market for calcium carbide and methanol has been mainly consolidating, while the cost of BDO is mixed.

On the demand side, the main downstream PTMEG, although downstream spandex has seen a decrease in load, PTMEG’s inventory is low, which will not affect PTMEG’s high production in the short term. Despite the addition of new production, downstream PBT still maintains a high operating level of 65% in the industry in the past two years. The demand for degradable materials continues to grow steadily, and the operating rate of GBL/PU/TPU is maintained.

According to future market predictions, some devices are still in maintenance status, but some devices may experience load increases or restarts. There is some support on the short-term supply side, and the supplier’s intention to maintain prices will continue. There is no significant change in downstream demand at the terminal, and spot goods are following up lightly. Business Society BDO analysts predict that the domestic BDO market is mainly weak and consolidating.