According to the Commodity Market Analysis System of Shengyi Society, the domestic BDO market has fallen. From August 1st to 29th, BDO prices fell from 8400 yuan/ton to 7571 yuan/ton, with a price drop of 9.86% during the period and a year-on-year price drop of 7.34%.

At the beginning of the month, domestic BDO prices fell significantly, leading to a decrease in supply, while the main downstream industries experienced a decline in production, resulting in a reduction in raw material digestion and a continued supply-demand imbalance. Holders actively offer discounts for shipments, causing the market center of gravity to fluctuate downward.
In the first half of the month, the supply decreased while the main downstream industries slightly increased their production, resulting in an increase in raw material digestion. However, the supply remained significantly higher than demand. Holders lack confidence in the future market and engage in negotiations to offer discounts on actual orders, resulting in a volatile downward trend in the domestic BDO market.
In the middle of the month, the supply increased while the main downstream industries experienced a decline in production, resulting in a reduction in demand for raw materials. The supply and demand in the BDO industry intensified, and the bearish mentality of industry players continued. The focus of the domestic BDO market continues to decline due to the negotiation and operation of actual order discounts by cargo holders.
Approaching the end of the month, during the transition period between the old and new cycles, there is a strong wait-and-see sentiment in the market, with little news of contract order trading and actual spot order negotiations. However, the contradiction between supply and demand continues, and industry players are cautiously bearish. Holders are negotiating on the lower end of the market, and the market center is weakly oscillating.
Supply side: In terms of equipment, the second and third phases of the Lanshan Tunhe plant have restarted, while other plants are operating more stably, resulting in an increase in market supply. The overall load of downstream industries remains stable, with no significant increase in raw material digestion. The supply and demand side of the BDO industry is still under pressure, which is detrimental to the purchasing and sales mentality of industry players. The supply side of BDO is affected by negative factors.
On the cost side, raw material calcium carbide: production enterprises have smooth shipments. Downstream maintenance has gradually resumed, external sales of calcium carbide have weakened, and market inventory has shifted downstream. Raw material methanol: The domestic methanol market continues to be weak. As of 10:00 am on August 29th, the reference price for domestic methanol in Taicang is 2230 yuan/ton. The fluctuation and consolidation of raw materials such as calcium carbide and methanol have a mixed impact on the cost of BDO.
On the demand side, as September approaches, with the arrival of the traditional peak demand season of gold, silver, and silver, downstream terminal production will increase. For example, the main downstream PTMEG industry, PBT industry, PBAT, GBL-NMP industry and other maintenance equipment will restart successively at the end of August and early September, increasing the amount of raw material digestion. And the price of raw material BDO has fallen to a low level, reducing cost pressures. Downstream industries have increased their enthusiasm for entering the market and stocking up or purchasing, which has to some extent eased the pressure on BDO factories to ship. The demand for BDO is expected to be influenced by favorable factors.
Future forecast: Currently, BDO factories are facing decent shipping pressure, and industry losses are intensifying. Suppliers are actively maintaining a stable market mentality. Downstream industries are in urgent need of procurement, and holders are concerned about settlement losses at the end of the month, which may weaken their willingness to offer discounts. The intensification of the supply-demand negotiation game, limited market fluctuations, and a double increase in supply and demand, Business Society BDO analysts predict that the domestic BDO market will mainly consolidate at a low level.