Supply Disruptions and Rising Demand Drives Bisphenol A Prices in the USA Market
Supply Disruptions and Rising Demand Drives Bisphenol A Prices in the USA Market

Supply Disruptions and Rising Demand Drives Bisphenol A Prices in the USA Market

  • 05-Mar-2024 5:03 PM
  • Journalist: Motoki Sasaki

Shanghai (China): Despite the bearish trend in exporting Asian nations and the crisis in China's property sector affecting the polycarbonate and epoxy resin market domestically, Bisphenol A prices increased in the USA's domestic market in February. The USA's construction sector exhibited steady growth, maintaining moderate demand for Bisphenol A in downstream polycarbonate and epoxy resin production. Additionally, supply disruptions caused by the Red Sea crisis and Panama Canal drought further impacted the price of Bisphenol A in the USA market. There have been major rise in freight charges on key routes including on the

The Panama Canal drought and attacks in the Red Sea play a crucial role in the narrative of supply disruptions affecting the petrochemical industries, including Bisphenol A. These incidents have compelled carriers to redirect ships around the Cape of Good Hope, leading to a substantial increase in both time and costs for each voyage. Persistent rebel attacks on vessels in the Red Sea, coupled with drought conditions restricting vessel transits through the Panama Canal, have disrupted traffic and intensified supply challenges in the global Bisphenol A market. Additionally, adverse weather conditions, such as freezing temperatures on the US Gulf Coast, have also had some impact on the petrochemical industry.

The U.S. construction sector has exceeded expectations, propelled by robust single-family homebuilding and favorable mortgage rates. The Federal Reserve's commitment to lower interest rates has provided crucial support, particularly in the residential sector, where new single-family projects have witnessed a 1.4% increase. The construction industry in the U.S. maintains its growth trajectory amidst positive market conditions and high demand for new homes. The stability in phenol and acetone prices in the feedstock market has prevented fluctuations in Bisphenol A prices, contributing to an overall stable market.

According to the U.S. Bureau of Labor Statistics, the construction industry has experienced significant job growth, with a year-over-year employment increase of 2.5 percent, resulting in the creation of 197,000 new jobs. This growth underscores the industry's resilience, partly driven by substantial boosts in construction spending. This robust growth in the construction industry reflected in increased demand for Bisphenol A in the downstream sector, with the assessed price of Bisphenol A in February 2024 reaching USD 1475/MT, CFR Texas, indicating a 1.3% increase from the previous month.

The analysis suggests that the upward trend in Bisphenol A prices is likely to continue in the coming months. This expectation is driven by disruptions in logistics, rising insurance charges for shipments, and constrained inventory levels in the domestic market, all occurring amid moderate demand from downstream industries.

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