Fluctuation in Bisphenol A: market began to stabilize in China
- 18-May-2022 8:22 AM
- Journalist: Li Hua
Bisphenol A values witnessed a stable trend in the Chinese market the previous day. The rise in feedstock prices, stabilization in sales and production, and trade activities were the primary reason for the Bisphenol-A price change. In addition, the freight charges also play a major role in the Bisphenol A market.
The disruption caused by the Russia and Ukraine war caused the crude values to fluctuate, affecting their derivatives. However, because of the rising pandemic cases and shutdown limitations, China's crude oil consumption has reduced, causing crude prices to fall. Furthermore, Saudi Aramco's declaration of an oil price cut in Asia has influenced the scenario. As a result, the feedstock acetone and phenol prices began to fluctuate from the previous week, affecting Bisphenol A cost further.
The ease of port congestion and lockdown restriction has resumed production and import activities. Hence, the resumption in trade activities has stabilized the sales in domestic and regional markets. Thus, the prices of Bisphenol A lie around USD 2465 per tonne approximately on 16th May.
Bisphenol A is extensively used in the production of epoxy resin and polycarbonate. Since the automotive industries are gaining strength, the demand for the downstream epoxy resin and polycarbonate is also increasing; this rise in demand has ushered the change in Bisphenol A pricing. "The increase in freight charges due to the continuation of the energy crisis globally can affect the prices of Bisphenol A." one of the purchasers from China remarked when questioned.
According to ChemAnalyst, "The prices of Bisphenol A might rise in the forthcoming weeks as there could be a healthy consumption from the domestic market. The downstream epoxy resins and polycarbonate are likely to rise due to the growing demand from the automotive sector. Furthermore, the crude and feedstock values are expected to rise if there is a healthy consumption from the Chinese market. In addition, an increase in import activity could be predicted as port congestion is easing slightly along with the restrictions."