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The BDO price started to rise at the beginning of this year, but in May, the trend was turned, with a gradual drop continuing until now. The BDO bulk price has dropped by about 10.5% from the peak season by this year.
this week, the BDO market was relatively weak, and manufacturers' offer remained stable, with low prices occasionally quoted for selling off. This month, the average price at which BDO was traded fell slightly due to a thin market.
With stable demands from downstream sectors of PBT and PTMEG, the facilities of BDO manufacturers operate at 70-80% of capacity. Other areas saw a drop in demands. However, with the excessive supply of BDO, which is exacerbated by the high opertaion load of BDO facilities after the third quarter, as well as the anticipation of additional production capacity, market participants are bearish on the future market and take a wait-and-see attitude.
Under the circumstance that price continues to drop, manufacturers are put under increasing cost pressure.
The price of BDO has been falling gradually since May. Whereas the prices of raw materials such as calcium carbide and methanol soared, up by about 20%. This leads to rapid shrinking of the manufacturers' profit margin, highlighting the role of costs in determining their profits
To sum up, the rise in BDO price in the near future is expected to slow down or consolidate.
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