For the Quarter Ending December 2022
During the last quarter of 2022, Bisphenol S prices in the US market decreased due to cheaper imports. Prices have been following a downward trend for the past three months due to market uncertainties caused by rising inflation and fears of a recession in the domestic market. In response to these concerns, domestic producers have displayed mixed reactions. Some have chosen to reduce production to address the issue of oversupply, while others have offered discounts to maintain sales. However, demand for the product from the domestic market has also decreased. Imports from the Asian market have remained steady, despite a significant decrease in freight charges.
In the last quarter of 2022, the trend of decreasing prices for Bisphenol S persisted in the Chinese market. The market exhibited a lack of buying interest, with limited inquiries and small order quantities. Inventory levels were high, and the supply dynamics were described as stable to the firm, indicating ample material availability. Demand from downstream industries, Polycarbonate and Epoxy resins, remained stagnant or weak, leading to stable volume offtakes with few new orders from downstream users. Additionally, demand from the international market remained weak due to fears of a recession in the Western market, which resulted in low consumption rates.
Middle East Asia
In the final quarter of 2022, Bisphenol S prices continued to decrease due to the stable to weak demand dynamics and a steady influx of imports from South Asian and Far East Asian countries. The consumption of Polycarbonate and Epoxy resins remained unchanged, as reported by market participants, due to a lack of new orders. During this quarter, freight charges decreased significantly in the global market as supply chains returned to normal. Despite efforts by OPEC+ to stabilize crude oil prices through output cuts, the lockdown in China and the short-term weak demand outlook meant that these cuts had little impact on Bisphenol S prices. As a result, the cost pressures from upstream remained weak throughout the quarter for Bisphenol S.
For the Quarter Ending September 2022
Bisphenol S price movement fluctuated in the North American region throughout quarter III of 2022 due to shifting demand sentiments from the downstream industries. At the end of the first month of the third quarter, the production costs decreased sharply due to a significant reduction in upstream sulfur prices. The demand for feedstock sulfur rose in the fertilizer industries from the H2 of Q3, and the BPS price trend revived, and prices rose till the end of the quarter on the back of improved demand from importers. At the same time, material supplies were affected due to port congestion raising the input costs and product production costs.
Bisphenol S prices shifted during the 3rd quarter of 2022 in the Asian region. During the H1 of the third quarter, the product prices decreased due to the ample availability of feedstock sulfur trioxide inventories at reduced prices. Then in the second month, the price trend shifted in China and Japan as the Major producers in China and Japan cut down operational rates on Government's instructions due to heat waves in summer. While the price trend persisted in India, and the product prices decreased noticeably in the final month of Q3 due to a reduction in production costs on the back of consistent demand from downstream. After witnessing a quarterly decrease of almost 10%, Bisphenol S prices in India settled at USD 3051/MT at the end of quarter 3 of 2022.
Bisphenol S price trend fluctuated in the European region during Q3 of 2022. During the initial couple of months of Q3, product prices decreased due to plummeting feedstock sulfur prices on the back of reduced offtakes from downstream industries, negatively affecting the product's production costs. The demand for the product was moderate during the period. However, prices inclined upward in the final month of Q3. A fall in river levels like the Rhine in Germany in summer affected supplies and caused supply chain disruption in the region. Additionally, the high inflation depreciated the Euro values against the US Dollar, increasing the product prices towards the end of the quarter.
For the Quarter Ending June 2022
In the second quarter of 2022, the US market for Bisphenol S showcased an up-and-down pricing trend. At the beginning of Q2, the purchasing activities were weak in the domestic market. Moreover, the feedstock Benzene and Phenol prices increased due to the tight supply of upstream Crude, which also affected the values of Bisphenol S. Later, the prices for Bisphenol S began to decline in June due to the fear of recession as a result of increasing interest hikes by the federal reserves, which led to inflation. However, the market for polycarbonate and its downstream counterpart epoxy resins shrank, which led to sluggish Bisphenol S demand. Henceforth, the price of Bisphenol S is on a negative trend because of the weak demand.
The Bisphenol S price trend for the quarter ending June 2022 was lowered by the poor buying sentiments from the Indian domestic market. The price of the imported cargoes dropped due to poor demand from the downstream automotive and plastic sectors. Additionally, the local market's raw material, the upstream Crude, and the feedstock Phenol costs demonstrated a downward tendency, which negatively impacted the Bisphenol S market. Additionally, the COVID restrictions in China affected the trade and resulted in stockpiling of the product. Hence, the ample availability of the product in the domestic market provoked the manufacturers to reduce their offers to sell off their existing commodities.
The price of Bisphenol S in the European market showed an upward trajectory movement in the quarter ending June 2022. After the crisis between Russia and Ukraine, demand for downstream plastics increased, influencing the domestic Bisphenol S pricing. The end-use automotive and construction sectors showcased healthy purchasing, which supported the Bisphenol S price increase. The situation described above was under additional pressure due to the rise in interest rates, which increased the price of Bisphenol S. Additionally, the continuous sanctions on Russian crude imports resulted in a tight supply of upstream Crude coupled with huge demand from the regional markets, further inflated the Bisphenol S pricing.
Uncertainty in the demand for Bisphenol S in the regional market resulted in mixed sentiment of Bisphenol-q in Q1-2022. Bisphenol S is less harmful as compared to BPA and is actively being replaced in manufacturing thermal paper and epoxy production which has resulted in an increased requirement for the product. Soaring values of upstream crude and feedstock Phenol and Acetone compelled manufacturers to push up the price to protect their margins. By the end of Q1, prices began to drop as a result of high inventory levels and ample supply of the product in the regional market.
Bisphenol S prices showcased an ambiguous trend in the regional market during the first quarter of 2022. After a slight rise in January, prices dropped in February due to the disruption caused by the COVID resurgence in China, which led to market closures and reduced demand in China. In India too, Bisphenol S prices dropped by around 2.8%, and the price settled at USD 3462 per MT CFR JNPT in February. Later the price rose slightly in March due to unprecedented rise in upstream crude prices which directly affected feedstock Phenol and Acetone, consequently influencing the market trend of Bisphenol S in India.
In Europe, prices of Bisphenol S showcased a marginal rise by 1.5% in the first quarter of 2022. Bisphenol S is actively being used to replace Bisphenol A in epoxy and thermal paper production due to its less toxic nature. Growing requirements for the product from the domestic market after an ease in lockdown restrictions in Germany positively impacted the Bisphenol S market. Moreover, the Russia-Ukraine conflict led to an unprecedented rise in upstream crude prices, which further uplifted Bisphenol S price trend.