According to the Commodity Market Analysis System of the Business Society, the domestic BDO market went down unilaterally in July and slightly rebounded at the end of the month. From July 1st to 27th, the average price of domestic BDO decreased from 11421 yuan/ton to 10942 yuan/ton, with a price drop of 4.19% during the cycle, with a maximum amplitude of 4.57% and a year-on-year decrease of 18.21%.

The main factor affecting the BDO market this month is downstream demand. In the first half of the month, there were frequent reports of equipment maintenance by production enterprises, resulting in a decrease in supply, which to some extent boosted the market atmosphere. With the restart of some maintenance equipment, supply side support weakened. However, the demand side is in the traditional off-season, and most downstream industries are under cost pressure, suppressing procurement enthusiasm. At the same time, there is a strong sentiment of avoiding losses downstream of the terminal, with small orders in demand and severe price pressure. At the end of the month, the atmosphere slightly improved, but the price increase was not significant, and the market price rebounded by around 100 yuan/ton.

On the cost side, raw material calcium carbide: In July, the domestic calcium carbide market rebounded and reorganized, and the price of raw material blue charcoal stabilized at a low level. Cost support was average, and the downstream PVC market slightly increased, leading to an increase in downstream demand. On July 27th, the benchmark price of calcium carbide in Shangshang Society was 2933.33 yuan/ton, an increase of 1.73% compared to the beginning of this month (2883.33 yuan/ton). In terms of methanol, the domestic methanol market fluctuated and rose in July, with a monthly increase of 3.48%. Recently, there have been signs of recovery in the market for calcium carbide and methanol, but they are still at a low price, resulting in insufficient cost benefits for BDO.

On the demand side, the PTMEG industry has stable equipment operation and acceptable digestion of raw materials. The load of the PBT industry has dropped to around 58%, and some factories are buying at low prices to cover their positions; The workload of PU slurry and TPU industries in the polyurethane field has slightly increased, with a small amount of spot restocking but negotiation. The PBAT industry has not experienced significant changes in construction, and the overall demand for BDO is expected to increase in the short term, with a potential breakthrough in BDO demand.

In the future market forecast, there is no significant improvement in downstream demand at the end, and some downstream industries are experiencing a decline. BDO analysts from Business News predict that the domestic BDO market is mainly operating in a weak state.