Higher Export Activity Pulling Up Bisphenol A Market in South Korea

The rising export activities of South Korea have impacted Bisphenol A prices. It has been witnessed that the Bisphenol A market has shown an upward trend in the present week. The surging upstream crude values of geopolitical tension are also involved in the Bisphenol A price hike.

Trade activities have gain strength in May compared to the previous month in South Korea. The escalated tension between Russia and Ukraine due to the war has affected global trade activities. Since South Korea is one of the major exporters of Bisphenol A and the decreased import activity from Europe because of war and China owing to the COVID restrictions, it has weakened South Korea's supply in the late April and early May period. However, the easing of conflict between Russia-Ukraine and the relaxing of COVID restrictions resulted in the regaining of export activities in South Korea.

Bisphenol A is the downstream derivative of Acetone and Phenol. As a result, the increase in crude value has influenced their derivatives, Acetone and Phenol, which has further impacted Bisphenol A pricing. Lotte Chemical shut down their Naphtha cracker plant for maintenance on May 9th, which also backed up the raw material price hike. Moreover, the healthy supply and demand from the domestic and regional markets pushed up the prices of bisphenol A.

Whereas China is the major importer of Bisphenol A from South Korea, the drop in demand from the local market led to the declining Bisphenol A price trend by 0.6%, with a drop of USD 13/tonne from May 31st to June 1st. The decreased production from the end-use automotive and construction sectors because of the COVID restrictions resulted in plunging demand for downstream epoxy resin and polycarbonate.

According to ChemAnalyst's prediction, " The Bisphenol A market is expected to witness a continuous rise in the coming weeks." If the COVID restrictions were completely eased, demand for the product might have risen with an increase in export activities. Furthermore, raw material prices are likely to increase as the global market's supply and demand could increase."