Supply tightening, BDO price soared in September

Entering September, BDO price showed a rapid rise, as of September 16 the average price of domestic BDO producers was 13,900 yuan/ton, up 36.11% from the beginning of the month.

Since 2022, BDO market supply-demand contradiction has been prominent, with oversupply and weak downstream demand, and market prices have continued to fall. Except for a 5.38% rise in February, the remaining seven months were on a downward trend, with the biggest drop in July. By the beginning of August, the drop was more than 67%, after which the BDO market entered a downturn and consolidation period.
Changes in domestic mainstream BDO plant installations

In September, with the major BDO plant equipment parking for maintenance, the burden reduction increased and the overall supply gradually reduced, the supply-side support continued to strengthen, boosting market confidence. BDO in the main producers, only Xinjiang Lanshan Tunhe monthly settlement prices and new moon listing prices, the rest of the manufacturers mainly discuss the contract price, the rest mainly a small amount of supply bids. Traders quickly “seize the opportunity”, speculation atmosphere is the main reason for this round of rise.

At the same time, the cost side support is strong, maleic anhydride prices also by the supply tightening and cost support turned down to rise, as of September 16, the average price of maleic anhydride market in Shandong region is 8660 yuan / ton, up 11.31% compared with the beginning of the month. Formaldehyde was boosted by raw material methanol and continued to go up. Formaldehyde manufacturers intended to raise their quotations for profit, up 5.32% from the beginning of the month. Downstream PTMEG under the cost pressure, the plant price intention slightly enhanced. The industry starts at a low level of 3.5 percent, but with the restart of the Xiaoxing plant, the contracted procurement of BDO has increased.
BDO supply is tight, market speculation and upstream and downstream improvement, under the superposition of multiple good, short-term BDO prices still have room for upward movement.

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