Bisphenol A Prices Sustains Stability Despite Sluggish Offtakes in Europe
Bisphenol A Prices Sustains Stability Despite Sluggish Offtakes in Europe

Bisphenol A Prices Sustains Stability Despite Sluggish Offtakes in Europe

  • 26-Feb-2024 6:00 PM
  • Journalist: Harold Finch

The price of Bisphenol A in the European market has shown a consistent downward trend in January, supported by unchanging price momentum of feedstocks Phenol and Acetone. The economic slowdown in the Europe, marked by declining export volumes and reduced real consumer spending, contributes to this pricing stability. This trend is also evident in exporting Asian nations, particularly China, where challenges in the Chinese property sector have impacted construction, leading to subdued demand of Bisphenol A in downstream polycarbonate and epoxy resins and exerting downward pressure on Bisphenol A prices. The overall market sentiment is bearish due to this subdued demand. Additionally, the reduction in upstream crude oil prices, driven by concerns over increased global supplies and decreased demand for Bisphenol A, has further contributed to a decrease in production costs for Bisphenol A.

In the Netherlands, there was subdued buying enthusiasm, and demand from the downstream construction sector remained low, mirroring the sluggish performance of construction sector in European market. The construction sectors in the eurozone witnessed a significant decline in January, marking a sharp drop from December. DOW's Q4 2023 report highlighted a year-on-year decrease in net sales for the downstream Polyurethanes & Construction Chemicals business, attributed to lower global prices. The petrochemical markets in Asia exhibited a mixed trend ahead of the Lunar New Year holiday, indicating a stagnant market environment and a less optimistic industry outlook. Overall, this situation indicates challenges in the construction and related sectors, impacting both the demand and pricing dynamics of Bisphenol A in the market.

The ongoing implementation of new production capabilities in Asian exporting nations, coupled with sluggish demand growth and narrowing profit margins, is leading petrochemical companies to consider permanently closing older facilities. Additionally, the Red Sea transport crisis exacerbates economic challenges in the Netherlands, including a recession and high labor and energy costs. Industries across Europe are contending with rising inflation and elevated interest rates in the eurozone. The German chemicals industry, in particular, faces difficulties, with an 8% year-on-year decline in production, making a swift recovery unlikely. Despite these challenges, queries related to house renovations have helped maintain price stability for Bisphenol A in Europe. Traders had sufficient stockpiles to meet demand, and the assessed price of Bisphenol A in January stood at USD 1560/MT FD Rotterdam, showing a 0.6% reduction from the previous month.

Anticipations for the Europe market indicate that Bisphenol A prices are expected to stay unchanged until the first quarter of 2024, mainly influenced by a bearish trend in the downstream construction sector. Moreover, the escalating challenges in the global supply chain, disrupting international trade activities, may contribute to a decline in demand for Bisphenol A among enterprises.

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