Supply Delay and Surging Requirements Increase the Bisphenol A Prices in the US
- 23-Sep-2022 5:19 PM
- Journalist: Motoki Sasaki
Bisphenol A prices in the US have witnessed a continuous uptrend since the first week of September. The upsurge in the domestic market’s demand and the tight product supply backed the rising price trend of Bisphenol A. Moreover, the increasing raw material prices have also laid the foundation for the uptrend in Bisphenol A prices.
The US domestic market is slowly recovering from the port congestion and rail strike. Despite the recovery, there was a delay in the destocking of the products. Hence, the cargo’s availability within the country has under pressure. However, the stockpiled empty containers in the port area have led to tighter depot space. Moreover, the low operating rates of Mitsui Chemicals in Japan led to insufficient product availability and weak exporting of Bisphenol A to the US. Besides, the limited product availability in the US local market and the high consumer requirement inflated the Bisphenol A prices.
Furthermore, the retailers are in a dilemma to store sufficient inventories due to the upcoming holiday season. Since it is the peak shipping season, container charges are also increasing, and the current truckers shortage and rail delay is adding pressure to the already struggling situation. Henceforth, the price of Bisphenol A rose by USD 50/ MT with an increment of 2.1% on 23rd September.
In addition, the surging raw material Phenol and Acetone prices further inflate the Bisphenol A values. The demand for Bisphenol A from the downstream derivative Epoxy resins and Polycarbonate resins manufacturers is increasing due to the rising consumer consumption. Therefore, healthy purchasing activities from the end-use automotive, construction, and paint & coating industries resulted in the increasing price trend of Bisphenol A.
According to ChemAnalyst, the price of Bisphenol A might increase in the coming weeks. The peak shipping season in South East Asia will likely boost their container charges and export prices. Also, the upcoming Christmas season might increase demand for the product, further escalating the Bisphenol A prices.
