Bisphenol S Prices Improve Amidst Demand Pull from Downstream Industries
Bisphenol S Prices Improve Amidst Demand Pull from Downstream Industries

Bisphenol S Prices Improve Amidst Demand Pull from Downstream Industries

  • 22-Feb-2024 4:23 PM
  • Journalist: Jai Sen

Shanghai (China): Bisphenol S prices experienced a notable upswing in the Indian market, driven by robust demand in sectors such as automobiles and other end industries. This surge was further bolstered by the resilient cost support from the phenol feedstock, despite a decline in sulfur prices. The production of Bisphenol S, however, faced limited cost pressures from the decrease in sulfur prices. The domestic market's dynamics were influenced by various factors, including the fluctuating upstream crude market, which witnessed volatility due to the crisis in the Red Sea and adverse weather conditions in the USA.

The cold weather in the United States not only impacted oil production but also disrupted the supply chain, causing extreme tightness in the US market. A winter storm exacerbated the situation, leading to freezing temperatures that affected power supply, resulting in reduced operating rates for many facilities. This winter storm also had ripple effects on crude oil logistics and power infrastructure, contributing to power losses. Additionally, recent data from the Indian government highlighted a surge in the import of crude oil in January, reaching a 20-month high of 21.4 million tons. This surge underscored the heightened demand for upstream crude oil, particularly driven by increased requirements in the downstream sector.

The consistent expansion of the Indian construction sector, coupled with heightened demand for polycarbonate and epoxy resin, has been a driving force behind the upward trajectory of Bisphenol S prices. The downstream automobile sector, particularly the demand for paint and coatings, received a boost from robust vehicle sales in January 2024. Major players like Maruti Suzuki India, Tata Motors, Hyundai Motor India, Mahindra & Mahindra, Bajaj Auto, and Honda Motorcycle & Scooter India reported sales growth, with Maruti experiencing a substantial 13% increase in domestic sales, reaching 175,443 units.

The positive momentum in the automotive sector, along with the impact of ROHM's high-speed thermal printhead development on thermal paper, has contributed to the overall stability and improvement in Bisphenol S prices. The growing reliance on thermal paper products for medical records, laboratory results, and prescription labels is a key factor fueling the market growth of Bisphenol S. A recent report indicates that the global thermal paper market reached a size of US$ 4.3 Billion in 2023, further influencing the increase in prices.

Moreover, the manufacturing sector witnessed an increase in January, signaling healthy demand across different sectors. In the petrochemical markets of Asia, a mixed trend is observed ahead of the Lunar New Year holiday, with some product prices rising due to pre-holiday restocking. The domestic market for Bisphenol S is grappling with limited availability, and heightened consumer purchases have significantly strained the existing supply. This scarcity, combined with increased demand, has contributed to the challenges faced in maintaining an adequate supply of Bisphenol S. The price of Bisphenol S in January settled at INR 25,000/MT CFR JNPT, marking a substantial 17% increase from the previous month.

In conclusion, the analysis suggests that the prices of Bisphenol S are poised to continue its upward trajectory in the coming month. The robust demand from the downstream sectors, driven by factors such as the thriving manufacturing industry and increased consumer purchases, is expected to sustain the upward trend in Bisphenol S prices.

Related News

What to Expect in WA After the Ban on Hazardous Chemicals in Consumer Products
  • 13-Jun-2023 1:00 PM
  • Journalist: Jacob Kutchner