August-September 2010 European and American BDO Market Review

American market

In August and early September, the US BDO market is hard to find. As BASF and LyondellBasel announced their force majeure at the same time, the shortage of supplies increased. At present, the inventory is low on the market, so buyers find it difficult to find goods this quarter. Although the current auto market demand is strong, with the expected weakening of the global economy in the second half of the year, future auto market demand becomes unpredictable. Therefore, BDO suppliers are reluctant to promise to hold inventory.

European market

In August, BDO sales across the European region exceeded market expectations. The southern European market remained flat due to the summer recession, and the market volume declined. However, European market demand was strong in September and sales were flat in June and July. At present, the entire market is in short supply. Before the end of the year, the two major manufacturers will continue to implement limited supply. However, the degree of supply shortage has eased from the early third quarter.

In the past few months, the demand for the downstream PBT market has been extremely strong. Since last year, the PBT downstream electronics and automotive sectors have improved under the lead of the Asian market. In addition, the entire polyurethane market performed well and related product sales rose back to 2008 levels.

It is expected that the demand for BDO market will maintain its current level in the fourth quarter and prices may experience strong shocks. A major supplier indicated that it may raise the price of products in the fourth quarter. This price increase measure may be aimed at products that did not achieve full price increase in the third quarter. However, downstream buyers expect the market supply to increase in the fourth quarter, and prices may fluctuate or even decline.