1. Incidents. According to Baichuan data, BDO prices have recently risen. Domestic sprinkler supply manufacturers mostly ship between 17,500-18,000 yuan/ton, and delivery prices are mostly 18500-19,000 yuan/ton, and some have even reached the price of 19,500 yuan/ton. 2. Our analysis and judgment. (1) The BDO market is picking up, and there is still room for product prices to rise. Recently, there has been a rise in the domestic BDO market. There has been a general increase in the supply of scattered water from manufacturers. The market supply is slightly tight, imported supplies are scarce in the market, and the supply of domestic products is slightly tight. Many manufacturers are mainly suppliers, and their export sales volume is low. The recovery in the downstream market is the main reason for the recent rise in BDO prices. The decline in supply is a secondary reason. On the supply side, some factories are under low load due to factors such as weather or local power restrictions, and some have even stopped production. At the end of August, Yunwei started a car, and there was an increase in market supply. However, the price of BDO products did not drop to a certain extent. The main reason is that due to the upcoming peak downstream demand season, the market is generally optimistic about the future market, and there has been a marked increase in the number of merchants who intend to prepare goods. Last week, BDO's domestic sprinkler supply manufacturers mostly sold tanks between 17,500-18,000 yuan/ton, and delivery prices were mostly 18500-19,000 yuan/ton, and some were even reported at a price of 19,500 yuan/ton. In terms of import sources: Currently, there are few imports in the market. Affected by domestic price increases, there is also a trend of increasing prices. Mitsubishi's BDO price in September was around 2,800 US dollars/ton, an increase of 50 US dollars/ton. From the manufacturer's point of view, Yunnan Yunwei drove last week. According to the manufacturer, shipments are currently stable, and the latest tank price is set at 17,500 yuan/ton. Compared to other manufacturers, the price of 18,000-18,500 yuan/ton is lower. The manufacturer stated that this is because most of the products currently installed are qualified products and do not meet the specifications of premium products, so the price is slightly lower. The Nanjing Blue Star 55,000 tons/year BDO/THF unit started construction at full capacity. The main supplier of the product was exported in small quantities. The manufacturer's latest public price was stable at 18500-19,000 yuan/ton (sprinkler, self-pickup). The manufacturer's maintenance plan will be postponed until September. This maintenance is about 15-20 days, and the exact time is yet to be determined. The Shandong Central Asia Chemical BDO plant is currently running smoothly, and the construction has basically remained at 8-90%. The manufacturer BDO sprinkler recently quoted 18500-19,000 yuan/ton, and the actual transaction is biased towards the low end. The operating load of Lutianhua Company's BDO plant is high, and construction of downstream GBL and other derivative devices is still low. Negotiations and transactions for its sprinkler BDO supply in East China are around 18,000-18,500 yuan/ton. The construction of the Sanwei BDO plant in Shanxi started normally, and the operating load was basically 8-90%. The latest external price was 18,000 yuan/ton (sprinkler). The actual transaction was slightly lower between 17,500-18,000 yuan/ton, and the barrel was 19,000 yuan/ton. Its new maleic anhydride method BDO device has produced qualified products, but it has not been put into production yet. Recently, the signing ceremony for the transfer of 100,000 tons/year 1,4-butanediol (BDO) technology from Shanxi Sanwei Group to Henan Coal Chemical Hemei Group was held in Hebi City, Henan Province. Hemei Group is a subsidiary of Henan Coal Chemical Group. The 600,000 tons/year methanol and 450,000 tons/year calcium carbide projects currently under construction are progressing rapidly, and they are all scheduled to be completed and put into operation by the end of 2011. In order to speed up the transformation of methanol and calcium carbide products and increase the added value of products, the company combined existing methanol and calcium carbide plants to build a 100,000 tons/year 1,4-butanediol project using methanol, calcium carbide products and supporting engineering facilities. The total investment of the project is 1.63 billion yuan. The construction scale of the first phase is 50,000 tons/year, and it is scheduled to be put into operation in November 2011. The recent rise in the domestic BDO market, tight domestic products and scarce import supplies are all important factors affecting price increases. Since the downstream industry is about to enter the peak season, although currently only because some merchants have reduced inventory in the early stages and procurement to replenish goods, the BDO market will rise further in the future as downstream demand grows, and we expect it to rise to around 22,000-23,000 yuan/ton by the end of this year.