Slow Demand Drives Down Polycarbonate Prices in the USA Market
- 19-Apr-2023 2:05 PM
- Journalist: Emilia Jackson
The price of Polycarbonate dipped slightly in March 2023 due to the weak demand from the downstream industries. In March, the manufacturing Purchasing Managers Index (PMI) fell from the previous month, indicating a downturn in the USA manufacturing sector. For the sixth consecutive month, manufacturing-related economic activity declined in March, and new export orders decreased by 2.3 points from the prior month. The speed of the USA manufacturing sector's decline was the slowest in the previous five months, despite a minor decline in new orders and a new rise in production.
Since demand was still limited, prices for Polycarbonate also fluctuated in the USA market. Compared to the months before the pandemic, the price level in the USA market is still relatively high, which explains why considerable amounts of imports are still arriving at the ports. Polycarbonate price decreases in April are predicted due to the lower feedstock quotations and unstable market fundamentals.
Falling gas prices in March caused a noticeable slowdown in inflation, which reassured many American consumers and provided some support for the USA Federal Reserve's campaign to raise interest rates and regulate the economy's progress.
Micro business optimism in the USA decreased in March 2023, and they are currently coping with many problems, including difficulty finding qualified applicants to fill unfilled positions, inflation, and supply chain disruptions. A decrease in new commodity orders and a slump in the use of Polycarbonate in the construction and automotive industries were caused by the deteriorating economic conditions in the USA market.
As per data, the cost of Polycarbonate hovered around USD 3660/MT on a DDP USA Gulf basis during March 2023.
According to ChemAnalyst, the cost of Polycarbonate is expected to decline in April due to low consumption from the downstream sector and weak cost pressure from the raw material Bisphenol A in the USA market. It is expected that Polycarbonate prices are likely to decline from 1% to 1.5% in April 2023.