For the Quarter Ending March 2022
North America
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.
Asia Pacific
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.
Europe
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.
For the quarter ending December 2021
North America
In North America, the demand of Bisphenol S (BPS) was on higher side in the last quarter of 2021, due to rising feedstock prices across North American market. Demand fundamentals for BPS remained firm from downstream thermal paper and epoxy resin manufacturers in Q4 2021. Inflationary pressure and rising upstream value remained a matter of concern for manufacturer, which was another factor behind steep price escalation of Bisphenol S across US market. Post hurricane Ida in the USA, market participant witnessed significant pickup in market activities, bolstered the overall demand dynamics of the product across regional market.
Asia
In China stable to firm demand from downstream industries like thermal papers used in online billing POS machines resulted in overall buoyancy in the price of BPS in the final quarter. In South Korea, the demand of Bisphenol S is reduced in Q4 due to the ban of polymer products like single use plastic in cafeterias from April, which has contributed to a marginal decline in overall queries by downstream users. Meanwhile China witnessed a huge hurdle in production activities due to dual energy policy related restrictions in the country, which remained in existence till the end of the quarter.
Europe
The demand for Bisphenol S rose in final quarter of 2021 in European market because of gradual replacement of Bisphenol A by Bisphenol S as the latter is less toxic for the environment. Soaring natural gas price across European market post delayed delivery from Russia, amid expanding economies post recovery from pandemic related uncertainties. Demand fundamentals for the product also remained stable to firm across regional market, as market activities were ramping up. Furthermore, rising freight cost also remained a concerning topic for procurers and traders, as their margins were under threat.
The market outlook of Bisphenol S in North America witnessed an upward trajectory in the third quarter of 2021. The prices of BPS observed a steep rise in the US due to high freight cost and delayed shipping of raw materials from the Asian countries throughout the quarter. Demand for BPS rose significantly by the downstream thermal paper and epoxy resin manufacturers in Q3 2021. Increasing demand from the automobile, aerospace, and electronic industries is likely to be the key driver for North American BPS market in Q4.
The overall market outlook of Asia remained bullish throughout the third quarter of 2021. Shortages of usable containers and high freight costs led to the increment in the shipping charges which affected the pricing of Bisphenol S in Asia. Market dynamics for BPS in Q3 remained lopsided as demand from the domestic market effectively improved however supply fundamentals weakened under the resurgence of COVID cases around the globe. The ex-Mumbai prices rose from USD 3542/MT to USD 3815/MT during the third quarter. Traders remarked that their margin has been declining due to the surge in the Bisphenol S prices in Q3 2021.
During the third quarter of 2021, there was a surge in the prices of Bisphenol S in the European region. Spike in the pricing of Bisphenol S was forced by the delayed shipping of upstream feedstock from the Asian countries. Shipping troubles continue to plague the chemicals industry in China as delays, shortages and coronavirus outbreak intensify the global trade chaos, leading to skyrocketing freight rates. Demand for Bisphenol S from the downstream industries grew at an exponential pace in Q3 2021.
