Trading Atmosphere Warmed Up on BDO Market in Late-September Impacted by Downstream Procurement

Trading atmosphere warmed up on BDO market in late-September impacted by downstream procurement. Coupled with rising futures commodities, factories and traders were willing to purchase. Spot supply of BDO became tight and price of spot BDO stepped out bottom.

Actual trading price of spot BDO was gradually back to the mainstream level in October. Price of small orders slightly rose in mid-October.

Recent price uplift was mainly attributed to the reducing supply. Increasing BDO plants had turnaround in September, resulting into rapidly falling operating rate of BDO industry, which has been around 50% for a long period. After supply decreased substantially, the inventory of BDO plants apparently fell.