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BDO Market In The First Half Of 2017
Jul 23, 2017

Since the end of 2016, BDO has continued to pull up and remained high price steadily until April and May this year. Meanwhile, with concentrated overhaul and overcapacity of domestic BDO, manufacturers kept the general rate of operation. The BDO output could also be able to meet the downstream buyers' needs. Dealers are in the mood of keeping high price while the downstream market was good. In June and July, market supply was obviously bigger than the demand with weak downstream market unable to boost demand. The market was in weak consolidation and market participants were bearish on the market. Dealers purchased on rigid demand and BDO price continued to fall slightly. Up to now, BDO market is still weak and low price exsisted.


Domestic BDO capacity was in sustanined growth in recent years, the total domestic output was around 2.15 million tons up to July , 2017. Both fierce domestic market competition and the significant growth of BDO export this yera are good for relieving imbalance situation between supply and demand. Downstream plant would inevitably be affected by the grim situation of domestic environmental protection this yer. What's more, demands of THF and GBL in July and August will be weak, plant are under short-term delivery pressure. Oversupply and Cheap price are not conducive to fluctuating at a high price of the BDO market. The market remained weak and the future market is not optimistic. The market is expected to be good in September and October with rising BDO price. According to usual market feedback, the demand for TPU and pulp in traditional seasons of November and December will decline, and market will be in weak consolidation. In short, it still has long way to go in the BDO market in the second half of 2017.


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