Weak Market Sentiment Drives Down Polycarbonate Prices in Europe and the US
- 10-Feb-2023 1:45 PM
- Journalist: Peter Schmidt
In January 2023, Polycarbonate prices have been falling in Europe and the US. This price decline was mainly due to inflation, high-interest rates, and weak buying sentiments from the end-use industries.
The low demand from the downstream industries like the Automotive and Construction sectors since quarter 4 of 2022 also continued during January. Consumers stopped buying materials to control their spending. Further, natural gas prices decline in Europe due to the major regions having stored gas to meet the demand. Improved supply chains have lowered the demand for products. According to market experts, the annual inflation rate in January 2023 was 8.5%, lower than the rate of 9.2% in December 2022.
According to ChemAnalyst, the Polycarbonate prices were assessed at USD 4278/MT on an FD Hamburg basis, with a monthly decline of 3.4% during January 2023
In the US, the Polycarbonate price has fallen for the previous month due to the weak demand from the domestic market. The high rate of inflation in the US drives down buyer orders, which in turn drives down Polycarbonate prices in the market. Similarly, the feedstock Bisphenol A prices declined in January by 14% on a CFR Texas basis supporting the downstream derivative industries, including the Polycarbonate market. There is no major supply chain problem in the US, and eased the market. New orders from the end-use industries declined for the fourth successive month in January. The market value of Polycarbonate is likely to rise as a result of the US automotive industry's recent signs of recovery.
According to ChemAnalyst, the cost of Polycarbonate hovered around USD 3660/MT on a DDP US Gulf basis, with a monthly decline of 3.8% during January.
As per experts, the cost of Polycarbonate will likely increase in the US in the forthcoming weeks because growth in the automotive sector will drive up the Polycarbonate market.