China Bisphenol A Prices Take a Dramatic Tumble, Slump by More Than USD 250/MT Within a Week
- 02-Jun-2021 2:00 PM
- Journalist: Robert Hume
After record surges seen in early March this year, price of Bisphenol A (BPA) in China observed a dramatic reversal in the final week of May as weekly rates plunged by more than 15% of the values observed during the week ending 21st May. Some of the critical factors behind this sudden turnaround in prices have been bearish sentiments in demand, falling feedstock prices, downturn in downstream epoxy and ample supplies.
Easing raw material Phenol has also supported the downfall with small fluctuations reported on weekly basis. Price of BPA after conclusion of the 4th week of May was noted at USD 1740 per MT FOB Qingdao.
BPA’s downstream epoxy resin industry has also been on a constant decline where prices slipped by more than USD 900/ton since April. Some Chinese Polycarbonate (PC) producers are also maintaining a wait-and-see approach. The key factor behind this decline has been lacklustre buying with overall decline in raw material rates. The decline in BPA, however, is particularly pronounced with manufacturers under greater pressure on delayed shipments.
Prices of several chemical commodities in China have shown a downtrend after the National Development and Reform Commission of China along with other four central departments conducted a meeting on the abrupt escalation in prices of several commodities since the start of 2021. BPA/phenol prices jumped drastically in Q1 due to growing demand for IT/consumer electronics with sharp economic rebound. However, the outbreak of second wave of COVID in several parts of Asia and slowed demand has again turned the outlook negative and several Chinese manufacturers are hence operating cautiously.
As per ChemAnalyst, it is estimated that BPA price will further slip in the coming weeks while the demand is expected to stay wary of the pandemic situation. Many traders are indicative that the inflationary trend in BPA is likely to subside in the coming days with downstream Epoxy Resin and Polycarbonate producers impending production cuts to combat the dullness.