Robust Downstream Demand Brings Up The Slumping Bisphenol A Market
- 10-Aug-2022 5:07 PM
- Journalist: Francis Stokes
Bisphenol A market in China has been rising since the beginning of August. The escalating demand from the downstream sectors coupled with healthy buying sentiments are the primary reasons for the price rise. Also, the growth of downstream derivatives in the local market is another reason pushing up the Bisphenol A pricing in China.
After a great struggle to recover from the COVID slump, the Chinese domestic market is regaining strength. The global recession had only a limited effect on China due to the random lockdown, and the consumer demand has already affected the economy. Thus, the regain in the market activities started triggering the commodities values. Due to the fear of recession, international Crude prices are witnessing a fall. However, despite the slumping upstream Crude and feedstock Benzene, Acetone and Phenol values, the Bisphenol A market is showcasing a positive trend.
Moreover, the imposition of a trade deficit between South Korea and China consequently for four months resulted in importing Bisphenol A from South Korea at a huge price. Besides, the downstream derivative Polycarbonate and Epoxy resins market is also witnessing growth in China and other Asian countries. Hence, the increasing demand from these derivatives manufacturers is inflating the Bisphenol A prices. Also, the other end-use automotive, construction and paint & coating sectors are improving their purchase, further boosting the Bisphenol A values. Therefore, the price of Bisphenol A in the domestic market rose approximately 2% with an increment of $30/ tonne on 5th August.
Furthermore, the factory price of Bisphenol A is also high due to the escalating consumer needs and healthy purchasing. Also, the freight charges are skyrocketing, adding additional inflationary pressure to the scenario mentioned above.
According to the ChemAnalysts report, the Bisphenol A market will likely increase in the coming weeks. The tension between China and Taiwan might trigger and affect trade activity, resulting in a tight product supply. Moreover, an expected rise in raw material prices could also boost Bisphenol A pricing. Demand may remain robust in the domestic market, and the purchase is likely to be strong.