Bisphenol A Prices Fall in January 2024, Expect Improvement in February 2024
Bisphenol A Prices Fall in January 2024, Expect Improvement in February 2024

Bisphenol A Prices Fall in January 2024, Expect Improvement in February 2024

  • 20-Feb-2024 5:36 PM
  • Journalist: Sasha Fernandes

Shanghai (China): In January 2024, the domestic market for Bisphenol A in China exhibited a sluggish trend, with minimal price fluctuations due to weak cost support from feedstock phenol and acetone prices and minimal trading activities. The demand for Bisphenol A from downstream sectors such as polycarbonate resin and epoxy resins remained limited, primarily influenced by the slower growth of the construction sector in China.

The property and construction sectors play pivotal roles as downstream industries for Bisphenol A. In 2023, the property sector experienced a 1.3% decline in added value, causing a ripple effect on related industries, particularly downstream construction. Projections from the International Monetary Fund (IMF) indicate a substantial 50% drop in new housing demand in China over the next decade, further impacting these sectors. In January 2024, new housing supply and sales for the key 30 cities in China witnessed a significant month-on-month decline of over 40%, as reported by the China Real Estate Information Corp (CRIC).

The subdued buying enthusiasm and sluggish demand for Bisphenol A from importing nations, coupled with lower demand in western countries due to the sluggish performance of end-use construction industries, resulted in a 4.6% contraction in China's total shipments in 2023. Additionally, the eurozone construction sector recorded a notable drop in January, contributing to the challenges faced by Bisphenol A in the current market scenario. The petrochemical markets in Asia are currently displaying a mixed trend ahead of the Lunar New Year holiday, with a few factories closing early, indicating a stagnant market environment and a less optimistic outlook for the industry.

This overall scenario poses challenges for the construction and related sectors, impacting the demand and pricing dynamics of Bisphenol A in the market. Buying enthusiasm has been subpar, and demand from importing nations remains sluggish. Dow's Q4 2023 report further highlighted a year-on-year net sales decrease in the downstream Polyurethanes & Construction Chemicals business, driven by lower prices globally. Sequentially, net sales declined due to reduced local prices on a global scale. Additionally, the price of Bisphenol A experienced an 8.3% drop in January, settling at USD 1250/MT FOB Qingdao. The temporary closure anticipated during the Lunar New Year holiday is a customary occurrence, with factories expected to resume operations after the festivities conclude.

According to ChemAnalyst projections, Bisphenol A prices in the Chinese market are expected to experience a gradual and steady movement in the first quarter of 2024, supported by an anticipated improvement of Bisphenol A in demand from importing countries. This trend is expected to be bolstered by enhanced productivity rates and a moderate demand outlook for Bisphenol A.

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