According to the Commodity Analysis System of Business Society, the mainstream market price of tetrahydrofuran in China slightly declined in May. At the end of the month, the price of tetrahydrofuran remained at 13166.67 yuan/ton, a decrease of 1.23% from the initial price of 13333.33 yuan/ton, and a year-on-year increase of 1.84%.

Supply side: In May, the prices of mainstream domestic tetrahydrofuran distributors slightly decreased, with average inventory levels. The market price of Nantong Zhonghe tetrahydrofuran is 13000 yuan/ton; The market price of Jinan Jinhao tetrahydrofuran is 14000 yuan/ton; The market price of Nanjing Runsheng tetrahydrofuran at the end of the month is 12500 yuan/ton, with lower dealer quotes and average on-site sales.

Cost side: In May, the market price trend of maleic anhydride increased. Currently, the spot supply of maleic anhydride has decreased, factories have limited shipments, and the market circulation of goods is limited. Prices continue to rise, and the market trend is upward. As of the end of the month, the ex factory price of solid anhydride in Shandong is about 7100 yuan/ton, and the ex factory price of liquid anhydride is about 6700 yuan/ton. The domestic market price of 1,4-butanediol has declined, with rigid demand contracts trading and light spot trading. The price of 1,4-butanediol has dropped from 9071.43 yuan/ton at the beginning of the month to 9028.57 yuan/ton at the end of the month, a decrease of 0.47%. The domestic BDO market is weak and downward, with light spot trading; The pressure on on-site inventory is still present and entering a new cycle, causing pressure on holding manufacturers to ship goods. Negotiations for discounts on actual orders have led to a weak market focus and a downward trend. The upstream raw material market prices have fallen, with insufficient cost support. Due to the impact of supply and demand, the price of tetrahydrofuran has been negatively affected, resulting in a slight decrease in tetrahydrofuran prices.

On the demand side: In May, the price trend of spandex in the market declined. At the end of the month, the price of spandex was 28875 yuan/ton, a decrease of 3.35% from the initial price of 29875 yuan/ton. In recent years, the concentration of the domestic spandex industry has been continuously increasing, and the industry’s leading effect has been obvious. The expansion of production capacity has significantly overlapped with the average performance of downstream terminal textile demand in recent years. The downstream spandex market is weak and declining, and downstream customers are less actively purchasing tetrahydrofuran, resulting in a slight decline in the tetrahydrofuran market.

Looking at the future: In the short term, the BDO market is weak and the cost support is insufficient. The downstream spandex market has slightly declined, and downstream demand has weakened. Business Society’s tetrahydrofuran analyst believes that the short-term domestic tetrahydrofuran market is not supported by favorable conditions, and it is expected that there is still room for a downward trend in the future.