For the Quarter Ending June 2023
North America
The price of Polycarbonate remained a declining trend throughout the second quarter of 2023 owing to the weak performance from the downstream construction industry. Despite the increase in automotive sales in Q2, the demand for Polycarbonate remained weak due to the sufficient supply of the product to cater to the domestic requirements. Further, new vehicle sales in the United States for top global automakers rose in the second quarter on improving supply and strong demand, signaling that rising interest rates have not yet had a meaningful impact on purchases. New vehicle sales in the United States for top global automakers rose in the second quarter on improving supply and strong demand, signaling that rising interest rates have not yet had a meaningful impact on purchases. Supply chains in the construction industry were relieved of pressure as a result of lower demand for the product. Some firms also noted that sufficient stock level at clients had led to lower new orders. Overseas sales had dropped notably, and the domestic market remained deteriorating this period. The buyers were cautious and wait-and-see approach, engaging only a need-based purchases.
APAC
The price of Polycarbonate GP saw a declining trend in the Japanese market due to poor performances from the construction industry throughout the second quarter of 2023. The downstream market was weak and in decline on the demand side, and downstream procurement enthusiasm was not great, with most purchases being made on a need-only basis. These characteristics were pressured by cost and demand-side bearish reasons. Further, overseas inquiries about the product remained subdued due to gloomy global transactions. The manufacturing PMI of Japan fell again in June compared to the previous month, indicating the slump in construction activity and the demand for Polycarbonate GP remained declining in the domestic market. Merchants were wait-and-see approach in the market due to the sluggish global economy throughout the second quarter of 2023. Supply chains in the construction industry were relieved of pressure as a result of lower demand for building supplies and materials. Further new work orders received from the enterprises declined, and the merchants were working on the existing orders to satisfy consumer demand.
Europe
In the second quarter of 2023, the price of Polycarbonate witnessed a declining pattern due to the weak demand among enterprises in the German market. German exports are being negatively impacted by the weak global economy, moderate inflation rates are also having a negative impact on consumer spending and construction activity due to diminishing purchasing power and dramatically higher financing costs. Business conditions across Germany took a turn for the worse in June, with faster declines in both activity and new orders amid a backdrop of rising interest rates, customer uncertainty, and wider inflationary pressures, indicating the demand for PCs in the construction industry remained bearish in the German market. The manufacturing PMI fell throughout the quarter, indicating the deterioration in the largest economy in the Eurozone area. Moreover, the reasons for the decline in new home construction include a recent surge in interest rates, rising construction costs, and uncertainty among builders and buyers. Market participants say pessimism about the construction industry for the next 12 months in the Eurozone which indicates that further decline in the PC market.
Middle East
Throughout the second quarter of 2023, the price of Polycarbonate witnessed a declining pattern due to the weak cost pressure from raw material Bisphenol A in the Saudi market. Saudi Arabia was importing Bisphenol A from overseas markets such as the Netherlands and Korea at low prices, supporting the domestic market. The Saudi market had an abundant supply of raw materials, thus relieved the production cost of the Polycarbonate in the country. Further, Saudi enterprises received fewer orders from overseas markets due to the uncertain global economy throughout the second quarter of 2023. The supply chain in the region operated at a moderate pace and was sufficient stock available to meet consumer demand. However, the demand for Polycarbonate in Saudi Arabia remained weak due to sluggish inquiries from the construction and automotive industries in the domestic market. There was significant wait-and-see sentiment in the domestic market. Meanwhile, demand from downstream industries witnessed stagnancy with limited new orders in the second quarter, and the procurements have been needed basis.
For the Quarter Ending March 2023
North America
During the first Quarter of 2023, the cost of Polycarbonate was observed to be stable, with slight fluctuations in the USA market. The weak-cost pressure from the raw material Bisphenol A and limited consumption of Polycarbonate in the USA market further declined the cost of the product. In January, the Polycarbonate price fell sharply and continued to stable trend due to the high-interest rates impacting the construction industry firms in the USA market. Further, the new orders from the end-use industries declined for the fourth successive month in January, and it continued throughout the Quarter. The cost of the Polycarbonate hovered around USD 3660/MT on a DDP US Gulf during the end of the Quarter.
APAC
The price of Polycarbonate witnessed a mixed trend in Asia-Pacific throughout the first Quarter of 2023. In January, the consumption of Polycarbonate from the downstream industries was reduced, and the product got stocked up in the Japanese market. After a declining trend, the price got higher and received more orders from domestic and overseas markets, and the merchants restocked the material. In the last month of the Quarter, the demand for the product declined due to the fewer new orders from the overseas market. On the other hand, the Chinese market followed the same price pattern throughout the Quarter because China was importing from the Northeast Asian nations for their market. The cost of Polycarbonate settled at USD 2551/MT on a FOB Tokyo during the last month of the first Quarter.
Europe
Prices for Polycarbonate decreased in the first Quarter of 2023 as a result of the weak demand from the European region's downstream construction and automotive sectors. The price of the product dropped, and fewer new orders from both the domestic and overseas markets were received. A wider look at the German automotive sector reveals that production levels are continuing to improve, albeit slowly. Existing orders were still being fulfilled by manufacturers, but waning demand from potential customers. In January, Trinseo announced to shut off of the Polycarbonate production line in Stade, Germany, to lower the cost of Polycarbonate and reduce the exposure to the cyclical merchant Polycarbonate market in the German region. In addition, high-interest rates often drop the demand, which might be negative for the global construction and automotive industry.
For the Quarter Ending December 2022
North America
The price of Polycarbonate witnessed a downward trend throughout Q4 of 2022 due to weak cost pressure from Bisphenol A in the US market. Due to inflation and high-interest rates in the USA, the demand from the automotive industry was low and reduced orders from the end-use sectors in the market. There were no major port congestions in the US. In December, holiday approach buyers purchased the materials on a need basis. On a DDP US Gulf in December 2022, the price of Polycarbonate was approximately USD 3808 per MT.
APAC
Due to weak demand from downstream industries, the price of Polycarbonate decreased throughout the fourth Quarter of 2022. The weak cost pressure from feedstock Bisphenol A supported the downstream derivative industries, including the Polycarbonate market. Due to the zero COVID restriction implemented during the fourth quarter, China's downstream industries experienced weak demand. During this timeframe, buyers reduced their orders, resulting in a stockpile of materials in the market. At the same time, the price of Polycarbonate decreased in the Japanese market as a result of fewer inquiries from overseas markets due to high inflation. In December 2022, the price of Polycarbonate reached USD 2718 per MT FOB Tokyo.
Europe
During the Q4 of 2022, the cost of Polycarbonate observed a downward trajectory throughout the quarter. The ample availability of natural gas and mild weather in European nations contributed to the ease in gas prices. This decrease in natural gas prices supported the cost of domestic production of the product. The demand for automotive and construction was relatively low in the region. A well-known company, Trinseo, announced the Polycarbonate plant permanent shutdown in Stade, Germany, under the influence of prolonged market disturbances and low demand. On an FD Hamburg in December 2022, the price of Polycarbonate was approximately USD 4430 per MT.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, the price of Polycarbonate soared in the North American region. The high-cost pressure from the feedstock Bisphenol A led to the downstream derivative industries. In the USA, the domestic market of Polycarbonate demand appears to struggle, and prices were under more pressure to soaring interest rates and surging costs of downstream automotive parts. Domestic factories have increased slightly to stimulate the market, and carriers have followed the upward trend with acceptable terminal acceptance. Downstream epoxy factories and intermediate traders have increased their participation.
APAC
The market sentiments for Polycarbonate observed declined trend in the Asian region throughout the third quarter of 2022. The costs from exporting countries like Thailand and South Korea decreased with a fall in consumption from the downstream sector. The freight charges in the Asian region were falling with global disputes. On the supply side, abundant goods are on-site, high inventory, weak demand, and buyers' heavy wait-and-see attitude in the market. India is expected to price gain in the Polycarbonate market due to the festive season in quarter four.
Europe
The price of Polycarbonate witnessed an upward trajectory throughout the third quarter of 2022 due to a surge in natural gas and raw materials prices in the region. The operating cost was high. Since the escalation between Russia and Ukraine, European countries have faced significant headwinds due to a shortage of natural gas and high prices for the available material. In the region, the operational cost of producing Polycarbonate was skyrocketing. Several German ports were congested in September, the supply chain disrupted the country, and the product's inventory level was low in the market. The moderate demand from downstream industries like automotive and, electrical & electronics has pushed the price in the northern direction.
For the Quarter Ending June 2022
North America
The North American market saw a surge in the prices of Polycarbonate during the second quarter of 2022, with prices observed to be hovering around USD 4100/ton Polycarbonate GP Grade DDP US Gulf with a quarterly escalation of 1.1% as per recorded by Chem Analyst pricing team data. Surging demand from downstream automotive and medical devices market pulled the prices of Polycarbonate in an upward direction. Varying costs of upstream feedstock Bisphenol A and Phosgene due to fluctuating petrochemicals market in response to the war between Russia and Ukraine supported the market. Rising product imports from the importing American and Asian countries due to development in the automotive enterprises was one of the major causes for the trend to increase.
Asia
Polycarbonate prices declined in the Asian market, with prices ranging at USD 3225/ton Polycarbonate GP Grade CFR, Shanghai in China, and a quarterly declination of 3.6% as recorded by Chem Analyst pricing team data. The downstream Epoxy resin and other markets fell broadly. Although the holders made profits-cutting, the actual orders were still limited, and the pessimism in the market increased. The weakening of the upstream feedstock Bisphenol A market has reduced the support for the Polycarbonate cost side. The buying situation from the downstream demand was not good, and the operating rate for terminal enterprises was limited due to various factors.
Europe
The prices of Polycarbonate surged in the European market during the second quarter of 2022, with costs ranging at USD 4318/ton Polycarbonate GP FD Hamburg and a quarterly escalation of 5.5% as per recorded by Chem Analyst pricing team data. Surging exports to the few importing European countries due to increased demand from the downstream automotive sector supported the market upward. The shipments were down, and there were shipping delays due to logistical constraints, leading to a product shortage in the market. This was one of the major causes of prices rise during the quarter.
For the Quarter Ending March 2022
North America
Prices of Polycarbonate rose in the North American region throughout the first quarter. Feedstock BPA prices fluctuated continuously in the USA due to volatile demand from the manufacturing sector as other alternatives like BPS and BPF were used in industries to manufacture Polycarbonate. The demand for Polycarbonate remained stable to firm from the downstream food packaging industry, due to which prices increased in the US market. The values got settled at USD 3936/ tonne by the end of Q1, with a decrement of 1% from the last quarter of 2021 in the US market.
Asia Pacific
In China, prices of Polycarbonate fluctuated in a stable to firm range during Q1 of 2022. Polycarbonate values settled at USD 3605 /tonne on CFR basis by the end of Q1 in the Chinese market. Prices rose due to strong cost pressure and favourable demand from downstream industries. Increased crude oil values in March impacted feed BPA prices from exporting countries like South Korea towards the end of the quarter in the Chinese market. However, in the Indian Market, the accessed prices of Polycarbonate on CFR basis were USD 2085.06 per tonne by the end of Q1. Prices declined in India during January and February whereas in March 2022, upstream Naphtha prices increased due to the war in the East European region, which impacted the production cost of Polycarbonate.
Europe
Prices of Polycarbonate in the European region witnessed a shift, especially in March 2022. Polycarbonate values decreased in January and February due to sluggish demand from the downstream automotive industry but rose eventually by the end of the quarter. The inflationary pressure from high feedstock values and increased natural gas and crude prices amidst the conflict in the East European region in March impacted the values of Polycarbonate in Europe. The accessed prices of Polycarbonate were USD 4310/ tonne by the end of Q1 2022.
For the Quarter Ending December 2021
North America
Weak demand outlook throughout the quarter meant a bearish sentiment in Polycarbonate market. Consumption remained sluggish in the wake of holiday season and underwhelming performance of the automotive sector. During the previous quarters, production shortage of Polycarbonate led to strong prices despite a weakened trend of consumption from automotive sector. However, in Q4 sluggish consumption from automotive industry appeared more glaring a timely downturn in prices of Polycarbonate. Prices were last assessed at USD 3850 per MT on DDP basis after conclusion of December 2021.
APAC
In India, Polycarbonate market outlook remains weak in last few weeks of the quarter stemming from dull domestic demand and rising freight charges. Domestic consumption continues to be muted keeping downward pressure on the available imported material. Although, Polycarbonate market started the quarter with a bullish sentiment where CFR prices increased to INR 169580 per MT however, they declined in the H2 of the quarter to INR 167910 per MT. Polycarbonate market in China also maintain stability and weak pricing sentiment throughout the quarter owing to stagnancy in demand and no production or supply chain hiccups. Ex-Shanghai price declined from October to December and last assessed at USD 3485 per MT during the last week of the quarter.
Europe
Skyrocketing natural gas prices along with strong Bisphenol-A (BPA) pricing kept an upward pressure on the overall cost of production of Polycarbonate. Consequently, manufacturers were forced to increase the prices of Polycarbonate throughout the quarter in order to keep their margins. Demand has been stable from the automotive sector despite a comparatively dull year due to global semi-conductor shortage Covestro and other key producers remarked that strong energy cost and rising logistics costs have further pressured overall prices amid healthy demand. Prices were last assessed at USD 4570 per MT in December 2021 on DDP basis.
For the Quarter Ending September 2021
North America
In Q3 2021, an exponential rise in the prices of Polycarbonate was witnessed in the North American region. The Polycarbonate market encountered tight supplies and firm demand from the downstream automotive sector throughout the quarter. Moreover, spike in the prices of upstream Bisphenol A (BPA) also sent ripples to the prices of Polycarbonate in the region. In late August, due to severe climate calamity in USA, several manufacturers were compelled to shut their production plants for nearly 2 weeks that also impacts the production rates and supply chains and consequently fumed the prices of Polycarbonate in the North American region. Hence, a continuous hike was observed in the values of Polycarbonate in this time frame.
Asia Pacific
In Asia, Polycarbonate market witnessed an upward trend backed by the strong demand from the downstream sectors during Q3 2021. As it is used in the production of testing kits, face shields, ventilators, and other medical devices, its demand remained uplifted in this time frame. In India, Polycarbonate is largely imported, therefore a constant surge in its prices was observed in the regional market backed by the soaring freight charges across the several interoceanic trade routes as well as delayed imports due to congestion on several ports. CFR-JNPT (GP Powder) prices in September were assessed at USD 2079.83 per MT with a hike of USD 266.14/MT. Amid the expectations of a further jump in demand due to the upcoming festive season, downstream buyers turned cautious over their inventory levels in India.
Europe
In Q3 2021, the Polycarbonate market remained gloomy despite the firm demand from the domestic as well as overseas market. Regional manufacturers of Polycarbonate were compelled to curtail their production capacities due to the energy crisis in this time frame although they experienced ample enquiries from the overseas market. Besides, constraint supplies of upstream Bisphenol A also sent ripples to the prices of Polycarbonate in the region. In addition, soaring freight costs and limited availability of shipping containers also contributed to the hike in prices of the Polycarbonate during this quarter. DDP Hamburg offers for General Purpose PC rose from USD 4350/MT to USD 4450/ from July to September.
For the Quarter Ending June 2021
North America
Polycarbonate (PC) prices climbed across the North American region during this quarter, backed by sturdy demand from the downstream manufacturers and tight supply activities. The demand for Polycarbonate from COVID related equipment like face shield, testing kits, ventilators and other medical equipment etc. remained firm. Feedstock Bisphenol A (BPA) kept on rising in the meantime due to sturdy demand and tight supply activities across the region. In addition, prolonged plant shutdowns since February, exacerbated the overall tightness in supply activities for PC and feedstock BPA in the USA. Consistent surge in prices of PC was observed in USA, which settled at USD 4085/MT (extrusion moulding) and USD 4375/MT (injection moulding) during last week of June in USA.
Asia
Polycarbonate demand dynamics varied in the Asian market country over country. China witnessed firm demand from downstream end users due to strong economic recovery from the pandemic. On the other hand, in India, price of PC in India kept slipping throughout the quarter due to dented demand under second wave of pandemic in the country. Feedstock BPA was increasing till May and then eventually fell in June due to muted demand for Polycarbonate. The price of Polycarbonate was assessed at USD 2049.2/MT and USD 3995/MT for injection moulding grade in India and China towards the end of Q2.
Europe
The European market had firm demand for Polycarbonate during Q2 amid critical shortage of feedstock chemicals, which supported the overall price of PC and other polymers. Dented supply of upstream chemicals led to an overall hike in supply chain of PC across the region which compelled manufacturers to raise their product prices to sustain their margins. Manufacturers like Covestro announced price hike of around USD 588/MT in its PC product, effective from May 2021. While, previously, Trinseo also announced price hike of around USD 470/MT on its PC resins in Europe due to similar reasons.
For the Quarter Ending March 2021
North America
Freezing cold temperature across the US Gulf Coast disrupted the total polymers and petrochemicals output of North American region in the quarter ending March. Most of the production activities remained curtailed due to unfavourable plant operating conditions, thus the supply of Polycarbonate compounds remained in narrow range throughout the quarter. The prices of Polycarbonate witnessed month on month increment, in January prices rose by +USD 219.4 per MT followed by gradual increments in the next month. During March, prices finally settled down at USD 3910 per MT after rising 20.67% since January. As the production activity across the region is resuming effectively, Polycarbonate prices are anticipated to calm down in upcoming quarter.
Asia
The Asian market experienced shortage of feedstock chemicals during Q1 2021 amid moderate to high demand from downstream end users. Feedstock Bisphenol A supply remained critically short, while the demand from other sectors like Epoxy resin market remained high. Hence the prices of feedstock chemicals skyrocketed during this time frame across Asia. In addition, prices of other upstream chemicals like Benzene and Propylene experienced double-digit rise, which levied a direct impact on the prices of Polycarbonate. Meanwhile, the FOB prices in China, during March settled at USD 3050 per MT after rising 127.6% since January 2021.
Europe
The European market observed similar trends in line with other regions, with shortage of feedstock chemicals, amid high demand from end users. The demand from downstream end users were observed stable to firm, however the supply remained critical due to lower imports from USA as the production activities were halted due to the freezing winter storm. In addition, imports from Asia also remained expensive due to higher freight cost and shortage of shipping containers.
For the Quarter Ending September 2020
North America
Sustained demand for electronics and engineering plastics triggered a sharp rise in the American PC demand which started facing supply side issues towards the end of Q3. In September, a major PC producer, Covestro declared force majeure at its 260 KTPA plant located Texas. The situation was exacerbated after Hurricane Laura led to further disruptions in the functioning of production lines. Regional traders found the quarter quite responsive in terms of demand while the US economy was still struggling to bounce back as a large population stayed-at-home, keeping most businesses affected. Commenting upon the pricing delta, margins remained intact with the fall in automotive offtakes largely offset by the buoyant medical plastics demand.
Asia
During the third quarter, the Polycarbonate market received firm support from all major industries except automobile and transportation which remained shrouded with uncertainty amid looming demand recovery due to the pandemic. Polycarbonate exports to Asia were heard registering volume growth, driven by surging demand for resins used in protective gears post reopening of several manufacturing sectors. As effects of COVID-19 eased, suppliers noticed a sharp uptick in the material sourcing compared to previous quarter. However, supply was largely disrupted due to maintenance turnarounds, creating potential tightness for the demanded grades, such as extrusion and optical. The Chinese PC reported healthy gains with automotive sector gradually picking up post a double-digit fall in Q2. High feedstock prices further led to unhealthy spreads between BPA and PC for producers. Tracing the inclining trend, the general-purpose PC resin prices matched USD 1900 per MT levels across the Indian markets during Q3.
Europe
Picking itself up from economic disruptions caused by the COVID-led slowdown, the PC demand in Europe grew higher in the third quarter, driven by improved fundamentals in the construction and medical plastics sector. Russia's overall consumption of PC granules (excluding import-export data from Belarus) rose in January-October 2020 by 21% year on year. Additionally, some players reported that export opportunities in Asia were competitively attractive for European producers while several consuming industries turned back to operations with the exception of automotive sector, which remained pressured under the global slowdown. The quarter ended with news of SABIC and electric utility company Iberdrola entering into a deal to set up the world’s first large scale Polycarbonate facility in Spain, which would run entirely (100 percent) on renewable energy.
