Despite the optimism in Bisphenol A market, Weak demand Continues to Plague Polycarbonate
- 20-Apr-2022 3:31 PM
- Journalist: Nina Jiang
The polycarbonate market continues to face a bearish trend in the domestic Chinese market owing to sluggish demand from downstream industries despite the change in momentum of Bisphenol A prices. Polycarbonate prices have been continuously declining in China since the conclusion of the Spring season holidays in early-February 2022.
As of the week ending 8th April 2022, Polycarbonate prices were assessed at USD 3540 per MT in the Chinese domestic market. Since the beginning of March, prices have declined by more than 3% where Polycarbonate prices were assessed at USD 3650 per MT.
Consumption levels of Polycarbonate from downstream Automotive and Electricals & electronics have been stable. However, volume intakes from the construction industry remain underwhelming as the Chinese construction industry continues to face headwinds in the backdrop of recent building and construction market plunge. Demand dynamics have been further deteriorated by another onset of covid cases in China. Initially, city of Shenzhen and later on the commercial hub of China, Shanghai, faced lockdown curtailing trading activities and transportation.
Meanwhile, the Bisphenol A (BPA) market has turned optimistic after observing a significant plunge in Mid-March to late-March assessments. Bisphenol A market suffered severely from the demand plummet since the resurgence of covid cases. However, the BPA market has shown signs of improvement on the back of demand increase and supply shortage owing to logistics and transportation issues in China. Therefore, as of the 1st week of April, BPA prices were assessed at approx. USD 2585 per MT.
As per ChemAnalyst, “Polycarbonate market is expected to remain weak in the coming weeks due to weak demand dynamics from the downstream construction industry. However, the automotive and Electricals & electronics industry may improve volume intakes as consumption of vehicles, and other consumer goods may increase in the backdrop of ease in global tensions and waning covid restrictions in China. Meanwhile, Bisphenol A market is expected to continue on the uptrend in the short term and stable demand and weak supply dynamics amid ongoing logistics and transportation issues.”