For the Quarter Ending March 2024
North America
North American Bisphenol S (BPS) prices plunged in Q1 2024, painting a bearish market picture. Several factors contributed to this decline. Firstly, a drop in export demand led to a Bisphenol S surplus, exerting downward pressure on prices. Additionally, a slowdown in the construction sector, a major BPS consumer, further weakened demand.
The US market, a key player, mirrored this trend. Prices steadily decreased throughout the quarter due to reduced demand, surplus inventory, and seasonal slowdowns during Lunar New Year and Ramadan. Compared to the same period last year and the previous quarter in 2024, BPS prices in the US fell significantly. Notably, BPS prices even dropped 12% within Q1 itself.
The quarter ended with US BPS priced at USD 1450/MT CFR Texas, reflecting the overall negative sentiment and a persistent downward trend in the North American BPS market.
Europe
European Bisphenol S (BPS) prices in Q1 2024 held mostly steady, with some volatility in the Netherlands. The market navigated low demand from downstream sectors, particularly construction, balanced by stable feedstock prices and underlying geopolitical tensions in the Middle East. Across Europe, BPS prices remained largely unchanged compared to the previous quarter. Moderate demand from construction and other industries was counterbalanced by cautious buying and a generally negative market sentiment. Additionally, stable prices for phenol and acetone, key feedstocks, helped maintain overall price stability. The Netherlands, however, witnessed some price fluctuations. Initial surges due to increased construction and automotive demand were dampened by shipping disruptions which delayed deliveries. This supply-demand imbalance tightened the market, leading to price hikes. Despite the Dutch fluctuations, the broader European BPS market in Q1 can be characterized as stable. The quarter ended with BPS priced at USD 1960/MT FD Rotterdam in the Netherlands.
APAC
The pricing environment for Bisphenol S in the APAC region during Q1 2024 has been characterized by various factors that have influenced market prices. Overall, the market has experienced a mix of positive and negative trends, with some countries seeing significant price changes. In India, the pricing situation for Bisphenol S has been particularly dynamic. The market has witnessed a steady increase in prices throughout the quarter, driven by sustained demand from downstream industries such as polycarbonate and epoxy resin. The construction and automobile sectors in India have been the key drivers of this demand, as the country experiences a construction boom supported by government investments and streamlined regulations. The tight supply conditions and low inventory levels have also contributed to the price increase in India. The overall trend in the APAC region has seen a correlation between increased demand from the construction and automobile sectors and higher Bisphenol S prices. This has been further supported by the positive growth in the manufacturing sector, driven by global demand and reduced inflationary pressures. However, the market has also been influenced by factors such as low feedstock prices, which have led to a decrease in Bisphenol S prices in some countries.
For the Quarter Ending December 2023
North America
The North American Bisphenol S (BPS) market witnessed a notable decline, with prices falling by approximately 10-15% in Q4 2023 compared to the previous quarter, marking a departure from earlier stability. Key drivers contributing to this downward trend included weakened demand from vital industries such as thermal paper and epoxy resins. Factors like a potential economic slowdown, the increased adoption of BPA-free alternatives, and downstream industries utilizing existing inventory instead of purchasing new BPS all played roles in this demand reduction.
The ample supply of BPS, marked by sufficient inventory levels and stable production capacity across the region, further contributed to the decline. Import competition, especially from Asia, introduced competitive pricing that added to the downward pressure on domestic prices. Despite moderate feedstock costs, with stable or slightly lower prices for phenol, a crucial BPS component, the overall market experienced the impact of weakened demand and increased competition.
Regional variations were evident, with prices generally higher in the Northeast and Midwest due to elevated transportation costs and concentrated demand. Conversely, prices were lower in the South and West regions due to their closer proximity to production facilities and less concentrated demand. This decline had varying impacts on downstream industries, benefiting users facing cost pressures, while BPS producers likely experienced lower profitability, contingent on individual production costs and hedging strategies.
Europe
The European Bisphenol S (BPS) market underwent a dynamic Q4 2023 marked by price volatility. Initially, prices experienced a decline in October and November, reflecting weakened demand from key industries like thermal paper and epoxy resins. Elevated inventory levels and stable to slightly lower feedstock costs, particularly for phenol, contributed to the downward pressure. However, the latter part of the quarter saw a gradual recovery, with prices reaching levels closer to Q3. This recovery was influenced by a seasonal demand surge, particularly in thermal paper during the holiday season, and production adjustments as some producers reduced output in response to earlier price drops. Key drivers included stable phenol prices, preventing significant cost-driven spikes, and the delicate balance between ample inventory and fluctuating demand. The presence of multiple producers in the European market maintained high competition, contributing to price sensitivity. Import activity from other regions, such as Asia, played a marginal role in influencing prices, remaining at moderate levels. Regional variations were evident, with prices generally higher in Western and Central Europe due to higher transportation costs and concentrated demand, while Eastern Europe experienced lower prices, benefiting from closer proximity to production facilities and less concentrated demand.
Asia Pacific
The Asia Pacific Bisphenol S (BPS) market presented a diverse landscape in Q4 2023, featuring dynamic and varying price movements across key regions. In China, prices underwent a pronounced downward trend, significantly lower than Q3, attributed to weakening demand in sectors like thermal paper and epoxy resins, coupled with substantial existing inventory and government interventions to control price hikes. India, in contrast, maintained relatively stable prices with minor fluctuations. This stability was supported by sustained demand in construction and electrical appliances, as well as the advantage of lower phenol prices compared to China. Southeast Asia exhibited volatile price movements, influenced by local demand variations and import dynamics. Some countries experienced price decreases due to import competition, while others saw fluctuations based on their unique demand patterns. Key drivers included moderating phenol prices, limiting production cost-driven increases, and varying demand dynamics. The interplay of ample inventory, particularly in China, and contrasting regional demand trends played a crucial role. Government policies, particularly in China, indirectly impacted the market dynamics. Import activity, notably from China, influenced prices in Southeast Asian countries, creating downward pressure. Regional variations were significant, with China witnessing a substantial price decrease, India maintaining stability, and Southeast Asia experiencing volatility shaped by local demand and import factors.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, Bisphenol S prices in the US saw a pronounced and consistent upturn, driven by a surge in demand from the downstream Epoxy resin sector and stable cost pressures from the upstream sector. Prices increased from USD 1715 per MT CFR Texas to USD 1865 per MT CFR Texas throughout the quarter. The construction industry's robust performance and a resurgence in the upstream market were key drivers of the Bisphenol S price increase. Demand from downstream sectors, including Epoxy resin and Polycarbonate, also surged. Thus, there was a rising pricing trend for the Bisphenol S market in the penultimate quarter.
Asia Pacific
Bisphenol S prices in Asian countries exhibited a consistent upward trend during the third quarter of 2023 , driven by a surge in demand from downstream industries, robust operating rates at Sinopec Mitsui, and elevated crude oil prices. Prices fluctuated from USD 1300 per MT on an FOB basis to USD 1511 per MT on FOB basis during the timeframe of July to September 2023. The increased prices of feedstock materials like Acetone and Phenol provided significant cost support to the Bisphenol S market. Sinopec Mitsui responded to the rising demand by increasing the operating rates of its 120 KTPA plant in Caojing. Strengthening demand in the downstream Epoxy resins market also contributed to the price increase.
Europe
Bisphenol S prices in Europe exhibited a consistent upward trajectory, primarily propelled by significant cost support from upstream sources. Prices varied between USD 1530 per MT FD Rotterdam and USD 1710 per MT FD Rotterdam basis from July to September. The surge in cost support was closely tied to the continuous rise in Brent crude oil prices. Demand dynamics in the European market remained subdued due to the presence of costly imports from the Asian market. However, the overall Bisphenol S market in Europe demonstrated resilience in the face of these factors as prices continued to climb throughout the quarter.
For the Quarter Ending June 2023
North America
Overall, the outlook for Bisphenol S in the US market during Q2 2023 remained uncertain. The downstream industries’ performance remained largely stable, with steady offtakes from the automotive industry and improved market fundamentals towards the second half of Q2 2023. Furthermore, the automotive industry showed positive growth in passenger car registrations in the US, with an increase in the market share of battery electric cars and hybrid electric cars. While this growth could positively impact the chemicals and polymers industry, demand for Bisphenol S in the construction industry remained lackluster, potentially due to factors like overstocking and weak demand in downstream markets. In the US, Bisphenol S prices in the US were assessed at USD 3200 per MT on FOB basis as of Q2 2023 ending.
APAC
In Q2 2023, the Indian domestic market for Bisphenol S experienced a bearish trend, with prices consistently declining due to the influx of cheaper imports from China, South Korea, and Japan, resulting in a monthly price change of -3%, -5.9%, and -3.2%. The market situation remained weak as sluggish prices in the Asia Pacific region led to an abundance of low-cost imports. Supply remained moderate, with steady imports, while buyers capitalized on the bearish market to negotiate better deals. Demand for Bisphenol S was low to moderate as downstream industries like Epoxy resins, and Polycarbonate showed limited new orders, and a wait-and-see sentiment prevailed. Currency fluctuations also played a role, with the Indian Rupee experiencing fluctuations against the USD. Overall, industry players faced challenges from the downward price trend and should carefully monitor market dynamics to make informed decisions. As of June 2023, Bisphenol S prices in Asia were assessed at USD 2185 per MT.
Europe
Bisphenol S, heavily employed in the construction industry via epoxy resin and Polycarbonate, faced challenging market conditions in the European regions during Q2 2023. In Germany, the disparity between contract and spot prices became a major concern for chemical producers, leading to persistent weak demand. The difference between contract and spot prices widened significantly, particularly affecting the olefins markets.
Furthermore, LANXESS, a specialty chemicals company, experienced below-average market expectations for Q2 2023, with weak demand continuing into the second quarter. The construction industry, along with the electro/electronics and consumer-related sectors, faced demand weakness, impacting the utilization and earnings of automotive companies. LANXESS revised its outlook for FY 2023 downward, reflecting the challenging business environment. Bisphenol S prices in Europe were assessed at USD 3100 per MT after the conclusion of Q2 2023 on an FD basis.
For the Quarter Ending March 2023
North America
In the US, Bisphenol S prices continued their downturn into the first quarter of 2023 on the back of sluggish demand fundamentals and ample material availability. In terms of operating rates, production remained firm in the domestic market, availing ample material, while weak demand dynamics in Asia prompted Asian exporters to send material to the US shores. This resulted in supply dynamics outpacing the available demand from Epoxy resins and Polycarbonate. Meanwhile, the freight market remained overly steady on the Asia-North American routes, resulting in declining freight and shipping costs. Thus, after the conclusion of the first quarter, Bisphenol S prices were assessed at USD 1905 per MT.
APAC
In the Asian markets, Bisphenol S followed a bearish trend throughout the first quarter of 2023 on the back of sluggish demand fundamentals despite some revival in the feedstock market. The snug demand fundamentals from downstream Epoxy resins and Polycarbonate have overshadowed any other market dynamics impacting the final prices of Bisphenol S. Feedstock Phenol prices have increased towards the second half of the quarter; however, it had a limited impact on the prices. Thus, after the conclusion of the first quarter, Bisphenol S prices were assessed at USD 1815 per MT on a FOB basis.
Europe
In Europe, the Bisphenol S market remained sluggish throughout the first quarter of 2023. The snug demand dynamics from the downstream Polycarbonate and Epoxy resins industry have culminated in a weak pricing trend in the European market. Meanwhile, not many European countries imports or produces Bisphenol S given the disruptive impact it has on the human body; thus, the quantity traded in European has been limited. However, the prices have followed the weak due to sluggish prices of the imports reaching the European markets. Thus, after the conclusion of the first quarter, Bisphenol S prices were assessed at USD 2210 per MT in the European market.
For the Quarter Ending December 2022
North America
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.
Asia-Pacific
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
North America
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.
Asia
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.
Europe
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
North America
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.
APAC
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.
Europe
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.
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.
For the Quarter Ending September 2021
North America
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.
Asia
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.
Europe
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.
