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Current BDO Situation
According to reports, BDO supply has greatly decreased within China and South Asia, with most major suppliers having shut down 1-2 production lines.
Reasons cited are the Sino-U.S. Trade War.
An industry shortfall is expected this month; prices will increase while supply does not. In other words, an effective stagflation has hit the material. Companies have adopted a flexible profit-first system, where production is only continued when marginal profit can be achieved; in short, the times of overcapacity are sharply coming to an end.
Potential order supply will be interrupted across the entire 1,4 Butanediol supply chain combined with even tighter margins and higher prices to be reflected onto the customer. These supply chains include NMP, PBT, TTF, GBL, PU, coatings, plastics and fibres, and other industries.
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