Consumer Demand to Rule the US Bisphenol A Market
- 29-Jun-2022 5:35 PM
- Journalist: Nicholas Seifield
Bisphenol A prices have been showcasing a stable trend in the US market. The primary reason that backs the steady Bisphenol A price trend is the poor requirement of the product in the domestic market. Additionally, the push and pull scenario, as a result of the other various conditions, has been influencing the Bisphenol A pricing.
The US market has banned the use of Bisphenol A in baby bottles due to its highly toxic content. Hence, Bisphenol A has been used to produce the downstream derivative epoxy resin and polycarbonate plastics. Decreasing demand for epoxy resin and polycarbonate in the domestic market results in weak buying sentiments. The poor buying activity led to stockpiling of Bisphenol A, forcing the manufacturers to negotiate with the existing products. Moreover, the drop in the downstream production ushered in the low requirement for Bisphenol A.
In contrast, the downstream manufacturers were refusing to import more stocks owing to the weak purchasing from the consumer's end. Moreover, the end-use automotive and construction sectors have also showcased a declining use of polycarbonate plastics, resulting in the poor requirement for the product.
The international Crude oil prices are surging because of the tight product supply across the region. The supply disruptions caused by the shut down of oil plants in Libya have been imposing an uptrend in crude prices. The rising Crude prices have been influencing its derivatives, Benzene, and Cumene. Since Bisphenol A is the derivative of Benzene, the soaring crude price trend is pushing up the feedstock values; thus, this situation provoked the Bisphenol A stockholders to maintain a steady price trend. Therefore, the aforementioned reasons brought about an equilibrium in the Bisphenol A pricing.
According to ChemAnalyst, " The Bisphenol A market is expected to remain stable in the forthcoming weeks. The demand for Bisphenol A might stay dull due to the poor buying activity from the downstream manufacturers. The copious availability of the product and increasing raw material values are likely to remain the same, due to which the traders also follow a stabilized trend."