Plummeting Polycarbonate Demand Pulls Down Bisphenol A Market
- 30-May-2022 3:16 PM
- Journalist: Nina Jiang
Bisphenol A market showcased a drop in the previous week due to the reduced demand from the downstream sectors. The falling polycarbonate market has impacted Bisphenol A prices in China. Moreover, the epidemic conditions in specific areas, transport disruption, and upstream price fluctuations impacted the Bisphenol A values.
Bisphenol A is most widely used in the production of epoxy resin and polycarbonate. The price of feedstock acetone and phenol has risen due to fluctuating upstream crude values. Despite the rising raw material prices, the Bisphenol A market dropped due to the decreasing demand for polycarbonates in the local market. Thus, the stockholders were forced to cut their profits due to the limited orders and increased pessimism in the market.
However, the surging COVID cases in specific parts of East China resulted in the market closure, seizing the selling activities, and ushering in the Bisphenol A price fall. The high inventory levels and poor consumption from the consumer side have led to stockpiling of the products. Hence, the weak buying sentiments in the domestic market prompted the drop in Bisphenol A prices. As a result, the Bisphenol A price declined approximately by 4.6%, with a drop of $111/tonne from 24th May to 27th May.
The supply chains were disrupted by the transportation limitations in the impacted areas; nevertheless, because the traders' attitude was not strong, the interruption in trading did not cause the price to rise. One of the stockholders in Beijing stated that the traders were locked in the notion that the purchasers who bought up the products were in a precarious situation due to the price and demand reduction.
According to the ChemAnalyst, "The price of Bisphenol A might face a drop in the coming week's downstream demand may drop. Also, the cost side of PC is expected to weaken due to the market closure and feeble buying activities. Copious availability of the product is expected owing to the tendered spot trading. Besides, the Bisphenol A production is likely to drop due to the reduced consumption from the terminal end."