In the first half of September 2025, Bisphenol A (BPA) prices in Asia increased by 5% following a decline in previous months. This positive sentiment is driven by strong cost support from phenol feedstock and some temporary support from the polycarbonate and epoxy resin markets. However, acetone feedstock prices continue to face downward pressure.
In China, the inventory management of BPA enterprises has led to a slight improvement in the previously loose supply situation. Additionally, robust demand from the wind power sector has supported epoxy resin prices, although demand from other end users, particularly the construction industry, remains weak. Meanwhile, domestic polycarbonate and epoxy resin facilities operate normally to high production levels, consistently drawing volumes from suppliers and tightening merchant availability for the week.
The polycarbonate (PC) industry is currently navigating a challenging landscape. While the load at Zhejiang Petrochemical has increased from 79% to over 83%, the overall demand remains weak. The recent bottoming signal has stimulated some buyers to enter the market, but trading activity is still limited due to high inventory levels and cautious sentiment.
The construction sector in China has shown signs of a modest slowdown, with new orders declining and sentiment remaining cautious. The property market is under strain, as resale home prices fell by 0.76% in August, marking the steepest drop in nine months. This decline has further impacted BPA consumption.
Overseas orders have also remained flat, largely due to severe weather conditions in Southeast Asia and India, which have hampered procurement activities. This slowdown in the end-user construction sector has contributed to reduced BPA consumption.
China's significant expansion of BPA production capacity over the past few years has kept prices under pressure on a monthly basis. From January to August 2025, BPA production reached 3.1541 million tons, marking a 12% increase compared to the same period last year. New units, such as Shandong Fuyu's 180,000-ton/year facility and Zhenhai Refining and Chemical's 240,000-ton/year unit, have contributed to this surge in production.
Downstream demand for BPA in Japan remains weak, largely due to seasonal declines in the polycarbonate (PC) and epoxy resin sectors. While epoxy resin prices slightly increased in late August due to tighter supply, low demand for coatings and adhesives has hindered restocking. The construction sector faces structural challenges, including vacant homes, depreciating property values, rising costs, and labor shortages, further reducing BPA consumption.
As per the Chemanalyst, Asian BPA prices may stabilize or decline in the coming weeks. Market activities are expected to slow during the October holiday season, leading to reduced transactions. High inventory levels from pre-holiday production may weigh on prices, as sellers face pressure to offload stock. The fourth quarter may see the operation of Shandong Ruilin's new 240,000 tons/year BPA equipment, adding further complexity to the market outlook.
