Price trend

According to the bulk list data from Business Society, after the decline in the domestic PC market in May, spot prices of various brands fluctuated and fell. As of May 30th, the benchmark price for the mixed PC of Shengyishe was around 16450 yuan/ton, a decrease of -0.50% compared to May 1st.

Cause analysis

In terms of raw materials: From the above chart, it can be seen that the domestic bisphenol A market operated weakly in May. The upstream phenol market is volatile, with low demand and a weak atmosphere in the acetone market. The raw material of bisphenol A did not provide good support, with the decline concentrated in the middle of the month. At the end of the month, there was a narrow rebound, but the strength was insufficient, making it difficult to form effective cost support for PC.

In terms of supply: In May, the overall operating rate of domestic PCs remained stable with slight fluctuations, and the industry average operating rate decreased by about 4% to 72% compared to the previous month. The on-site supply of goods is relatively abundant, and the mentality of enterprises has weakened. The factory price has fluctuated and decreased to find a market equilibrium point. During the month, some companies had arrangements for maintenance of production lines, but Hengli Petrochemical’s new production capacity continued to be released, basically smoothing out the trend of supply and demand reduction. In the short term, the level of market supply pressure may remain, which will generally drag down PC prices.

In terms of demand: In May, PC consumption will continue to follow the previous weak pattern, with the main logic leaning towards maintaining production and digesting inventory for just in need. Downstream enterprises have seen a decline in load, reduced stocking enthusiasm, and a decrease in consumption. Buyers have some resistance to high priced sources, and the demand side has poor support for spot prices.

Future Market Forecast

After the decline in the PC market in May, it was sorted out. The upstream bisphenol A market is relatively weak, Poor support on the PC cost side. The domestic polymerization plant has experienced a narrow decline in load and limited changes in supply. On the demand side, there is a downward trend in consumption, with weak trading on the market, and the market is about to enter the off-season. It is expected that the PC market will continue to operate weakly in the short term.