Urethane Blog

Butanediol Market in Asia

January 18, 2017

China BDO Market Rebounds in 2016
2017-01-17    [Source:PUdaily]
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PUdaily, Shanghai-In the first half of 2016, domestic BDO market remains sluggish on the confluence of oversupply and demand weakness. The BDO price falls down slightly in the first quarter and then stops downtrend and turns stable in the second quarter supported by the centralized maintenance at domestic BDO facilities. In the second half of 2016, the BDO price starts to rebound and the price swings between RMB 7,200-8,100/ton in 2016. At the end of 2016, BDO is offered at around RMB 10,500-11,500/ton in east China on bank draft, up by around RMB 2,650-3,400/ton or 37.93% compared with the same period in 2015. According to PUdaily, the newly added BDO facility with a capacity of 100 kt/year at Xinjiang MKMO has raised China’s total BDO capacity to 2,079 kt/year in 2016 and the overall operating at BDO plants are estimated at around 40-60% loads.

In 2016, China BDO export will reach to 11,483 tons, up by significantly 467.28% compared to 2024 tons of the same period of last year. In recent years, domestic BDO plants spared no effort to export their products, but the export of BDO still kept at low level. In China, the top two plants in exporting BDO are Xinjiang Markor and Changlian Chemicals (Panjin).

The top three customs in exporting BDO are Qingdao Customs, Dalian Customs and Huangpu Customs. In 2016, the export of BDO to South Korea ranks the first, followed by India and Germany.

Looking at market outlook in 2017, BDO facilities at Shanxi Ronghe, Xinjiang Guotai and Hancheng Heimao will be put into trial runs and the total BDO capacity will continue to increase in 2017. As for demand, PTMEG and TPU market performs well with stable growth in recent years, which will lead to increasing demand for BDO. As for export, confronted with the oversupply in the domestic market, BDO producers such as Xinjiang Markor will continue to making efforts to find their buyers in overseas market. It is predicted that the BDO export volume will continue to be on the rise in 2017.

http://www.pu366.com/News/NewsView.aspx?nid=62214

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