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Supply Chain Disruption and Transporters Negotiation Inflate US Bisphenol A Prices

Supply Chain Disruption and Transporters Negotiation Inflate US Bisphenol A Prices

Supply Chain Disruption and Transporters Negotiation Inflate US Bisphenol A Prices

  • 15-Sep-2022 3:54 PM
  • Journalist: Henry Locke

Bisphenol A prices have been increasing marginally since the beginning of September in the US. The rising ports and rail congestion have been hampering the supply of products in the US domestic market. Also, the fluctuating raw material prices laid the foundation for the rising Bisphenol A values.

The increasing container ship congestion in the US is worsening supply activities. The vessels accumulated in the West Coast port are shifted to the East coast, creating pressure in East ports. The continuous rise in inflation and the high freight rates prompted traders to increase their stock values. Moreover, the inland supply is affected by the delay in destocking the containers in the port; consequently, the negotiations between the railroad carriers and railroad unions resulted in delays in rail and truck transport for 12-30 days. Thus, the constrained supply chain and the huge demand led to the rise in Bisphenol A prices.

The demand for Bisphenol A increased from the downstream polycarbonate plastic sectors. The insufficient availability of the product in the US domestic market and inflating requirements provoked traders to increase the price of Bisphenol A in the US. Additionally, the imported cargoes from Thailand and Singapore were low as the Thai Bhat and Singapore Dollar depreciated by -1.22% and -0.57%, respectively, against the USD. Despite the cheap imported cargoes, the inland transport through trucks and rails was costly due to the congestion.

In addition, the fluctuating upstream Crude prices have influenced feedstock prices (Phenol +0.9%, Acetone +3.5%), further inflating the Bisphenol A values. Therefore, Bisphenol A prices in the US increased by 0.9% this week, showcasing a rise of $20 per tonne CFR Texas.

According to ChemAnalyst, the price of Bisphenol A might increase in the coming weeks if the supply shortage continues and demand from the domestic market rise. The requirement for Bisphenol A from the construction sectors might increase and further push up the Bisphenol A prices. Also, container congestion might continue, and the soaring freight charges will likely boost Bisphenol A prices.

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