The Asian Polycarbonate (PC) market exhibited declining prices in early June 2025, as mounting levels of supply and softening demand created tremendous pressure on market sentiment. In contrast, the U.S. market registered prices remain fairly firm in the face of prevailing uncertainty because of recent tariff actions and price volatility in feedstock.
Asian production levels at PC aggregation plants surged, with average plant operating rates rebounding by nearly 9% from late May to more than 82%. Weekly production climbed, with the pace set by the return of market leaders such as Luxi Chemical, Wanhua Chemical, and Shanghai Mitsubishi. Inventories at producers and distributors have thus swelled in the absence of weak downstream buying, adding further downward pressure to PC prices.
On the other hand, raw material prices were not affected positively. Prices of Bisphenol A (BPA), the key feedstock of PC, fell significantly in early June due to surplus and lower upstream costs of phenol and acetone. Although crude oil rebounded, it was not sufficient to negate the overall weakness of BPA and its impact on the manufacturing price of PC.
Demand conditions also stabilized in the PC. As warmer weather conditions swept through Asia, downstream PC processors reduced operating rates into a seasonally soft period. PC Buyers were conservative as well, cautious about making major volume purchases and utilizing only existing contracts, if and when to be filled. Large inventories and sluggish market turnover created a high willingness on the part of sellers to discount in a bid to stimulate trade, placing further downward pressure on PC prices.
Conversely, the U.S. market stayed stable. Although the fall in BPA prices was also reflected in the domestic market, PC prices remained stable since the automotive market, one of the major end-use sectors witnessed stable demand.
While the U.S. Court of International Trade ruled the White House's power under the IEEPA to impose unlimited tariffs unconstitutional, the order was appealed the instant it was made. Current tariffs remain in place as litigation proceeds. Auto manufacturers are for the most part in "wait-and-see" mode, since June shows U.S. manufacturing can be adjusted higher in 2025.
In the short term, as per ChemAnalyst, Asian PC prices will remain under pressure of oversupply and weak demand with no near-term recovery on the horizon. On the other hand, the U.S. market will remain stable consistently apart from cost shock or policy change-induced harm to automotive demand or supply chain.
