The decline in the domestic BDO market continued in June, and the current main market-East China, negotiated prices at RMB17,200-17,600  / ton, basically the same as the market price on the eve of the Spring Festival in 2021.

The change in the supply-demand relationship in the second half of 2020, and the release of the news about the new planned production capacity of biodegradable plastics, which is strongly supported by the national policy, is good for the market mentality and supports the BDO market soaring to a historical high. As the supply remains high and the end industry has limited ability to digest high-priced raw materials, many downstream industries are forced to reduce production burdens to reduce cost pressures, resulting in a gradual imbalance between supply and demand.

The current market price is still lower than the downstream psychological expectations, and the demand side enters the market to lower prices. In the short-term, under the background of the PBAT production capacity has not been fully released, how to maintain the healthy development of the BDO industry chain is still a problem that cannot be ignored.