BDO, PTMEG and spandex prices to be in consolidation on the whole

BDO: have cooler market atmosphere and the price expected to consolidate in short run

High offers of spot BDO goods reduce. Buyers show stronger sidelined attitude and the inquiries fall. Some BDO plants have turnaround, while supply rises as some plants have resumed operation and ramped up run rate. The arrivals of spot goods increase. Transactions of BDO decline as more buyers retreat to sideline.

The production suspension and curtailment may be continued in May. The bullish support from supply side may be remained, to support BDO price to above the break-even line. Supply side may enjoy bullish support in short run. BDO price is likely to be in range bound in short run.

PTMEG: with strong demand and good sales and the price is estimated to be large stable or slightly rise in some companies

Demand for PTMEG has been strong and most plants see high sales ratio, especially resources with high cost performance. The sales ratio of high-end PTMEG plants is not high when downstream plants faced big cost pressure. Downstream spandex price is low and spandex producers encounter pressure from losses.

Demand for PTMEG reduces in May but still enjoys strong support. Mainstream plants witness high sales ratio and may continue into May. Downstream buyers purchase less but as most PTMEG plants do not have inventory at hand, the sales ratio will keep high. Price of PTMEG is expected to be largely stable in short run with strong support from BDO market and the prices of some resources may rise slightly.

Spandex: witness slightly warmer trading and inquiries and price may be in stable correction

Price of spandex has been near the cost line. Companies in East China face apparent operation pressure. Some large plants in Midwest China who see stagnated sales increase cutting or suspending production. Fabric mills show higher buying interest when price of BDO and major feedstock of spandex is firm. Some start replenishing and dampen price under large orders. Price of spandex is in stable correction now.  

New units are active in having trial production in Q2, but the startup of some units is slightly delayed. Some units who see stagnated sales or heavy losses cut or suspend production. Supply of spandex may inch down in May. After spandex price declined more and the support from the cost side strengthens, price of spandex is expected to be in weak correction and the discounts will be remained for stagnated varieties and spandex from new units.  Inquiries for spandex grow from some buyers and price is bargained lower under large volume. Trading of spandex slightly warms up. Price of spandex may be in stable correction in short run. 

Actually, in May-Jun, the support from cost side may sustain firm but demand is likely to be hard to grow much. Most buyers are still expected to purchase on a need-to-basis and under small lots.