Moderate Downstream Sector Demand and Rising Feedstock Prices Have Driven Up Global Polycarbonate Prices in September 2022
- 04-Oct-2022 2:13 PM
- Journalist: Harold Finch
Towards the end of the third quarter of 2022, the Global Polycarbonate prices witnessed an upward trajectory owing to the rising feedstock Bisphenol A price, and other downstream sectors also contributed to driving the Polycarbonate market.
In the United States, the prices of Polycarbonate have soared during the week ending September 30, 2022, due to the persistent increase in feedstock Bisphenol A costs in the domestic market. The moderate demand from the downstream automotive industries, average supply, and limited product availability in the domestic market made prices in the northern direction. In North America, some ports were congested, and vessels waited an average of 9 days in the port terminals, which affected the delay in delivering manufacturing products to their destination.
As of September 30, 2022, the prices of Polycarbonate inclined by 0.7% weekly and were assessed at USD 4320/MT on a DDP US Gulf basis.
In Europe, Polycarbonate prices have continuously risen due to the increase in natural gas prices. Since the escalation between Russia and Ukraine, European countries have faced significant headwinds due to a shortage of natural gas and high prices for the available material. In the region, the operational cost of producing Polycarbonate has been skyrocketing. Several German ports have congested in September 2022, the supply chain disrupted the country, and the product's inventory level was low in the market.
As per ChemAnalyst, the price of Polycarbonate was recorded at USD 4910/MT on an FD Hamburg basis with a weekly escalation of 0.7% on September 30.
On the other side, in India, according to the data, Polycarbonate prices surged throughout September due to the high cost of imported cargo. The price has risen from significant exporters like Thailand and South Korea, which has directly reflected in the Indian domestic market. The increased demand from the downstream end-use sectors like automotive and electric & electronics has raised the Polycarbonate market.
As per the data, the cost of Polycarbonate hovered around INR 220000/MT on an Ex-Ahmedabad basis during September 30, 2022.
According to ChemAnalyst, the Polycarbonate price may increase due to high usage in the global market and the increase in operational cost because of uncertainty in the crude oil and natural gas prices. In India, it is expected that the high demand from downstream industries due to the festive season, and it is also anticipated that buying trend for Polycarbonate may increase until December 2022.