Polycarbonate Prices Decrease in Europe Amidst Weak Downstream Demand
- 07-Dec-2022 2:35 PM
- Journalist: Jung Hoon
Polycarbonate prices have been falling in the European market for the past few weeks. According to ChemAnalyst researchers, the Polycarbonate market's price drop is primarily due to falling Bisphenol A prices and weak market sentiments. The price of Polycarbonate assembled at USD 4530/MT FD Hamburg for the week that began on December 2, 2022, showed a weekly decline of 1.3%. The Polycarbonate market has been going through the same downward trend this week.
The fears of a recession in the coming weeks reduced demand for feedstock Bisphenol A, which resulted in a drop in its market in Europe. In addition, the ample availability of natural gas has stabilized the European gas market and decreased its price; European natural gas reservoirs have been filled by more than 70%. Europe has emerged from a significant energy crisis thanks to the balanced natural gas market; As a result, it has been noticed that some resins are getting cheaper.
Another significant contributor to the Polycarbonate price drop in the European market is a decline in product adoption in the automotive and construction sectors. There has been little demand for Polycarbonate products in the market. The production cost of the product reduces in the region due to stable energy conditions, falling prices for Bisphenol A, and no interest from construction and automotive downstream industries. The country's high inflation rate and the rising cost of living further restricted consumer spending in Germany.
According to ChemAnalyst expectations, the Polycarbonate costs are going to decline in the upcoming weeks in light of diminishing Bisphenol A and natural gas costs. Additionally, December is the month of destocking, and manufacturers would be willing to sell their products at a lower price to empty their warehouses. A downward price trend for Polycarbonate in the coming weeks may also be aided by weak global market demand.