Bisphenol A prices going strong in the Chinese market
- 01-Apr-2022 7:15 PM
- Journalist: Xiang Hong
Bisphenol A (BPA) prices entered an uphill price trajectory this week with a 4% increment after declining in China for the last two weeks. As per the ChemAnalyst database, this steep price rise is due to the rising demand from the derivative market. The increased consumption of epoxy resins and polycarbonate derivatives from the downstream automotive sector has supported this price hike.
Despite BPA being banned globally in food packaging and baby bottles, the rising demand from the automotive and electronic industries has kept the price hike. As a result, the prices of Bisphenol A rose significantly in China, reaching USD 2595/tonne for Bisphenol A FOB Qingdao on 1st April. In addition, the recent lockdown in China's largest port, Shanghai, affected the trading activity across the region. Suspended import volumes from South Korea led to the crippling availability of the product to the downstream market. Low inventory levels and container scarcity in the Chinese ports have choked various downstream industries like automotive and electronics.
Despite the crude price drop this week with the peace talks between Russia and Ukraine, the feedstock Benzene and Acetone prices continued to be on an uptrend in China, impacting the Bisphenol A market. One of the key market players, China National Bluestar (Group) Co. Ltd revised its base prices due to the tight supplies and increased raw material costs. The growing technological advances and rising production of automobiles compared to the previous year have also promoted the product.
According to ChemAnalyst, "Bisphenol A prices might continue in an upward trend in the coming weeks as the demand for high-performance coating products to safeguard electrical parts among electronics manufacturing businesses in China is likely to increase. Also, this summer season might aid in the improvement of demand patterns from the downstream construction sector. Expected upsurge in crude prices might inflict the feedstock Benzene prices leading to the price BPA to rise."