Price trend

According to the bulk list data of Business Society, the domestic PC market fluctuated and fell in April, with overall spot prices of various brands decreasing. As of April 26th, the reference quotation for the PC sample enterprises of the Business Society was around 15583.33 yuan/ton, a decrease of -1.79% compared to the beginning of the month.

Cause analysis

In terms of raw materials: From the above figure, it can be seen that the bisphenol A market fluctuated and improved at the end of this month. In the early stage, international crude oil continued to strengthen, while pure benzene and phenol in the upstream raw materials increased, and bisphenol A was supported by increased cost. As the holiday season approaches in the latter half of the year, the enthusiasm for entering the downstream epoxy resin market has increased, and the market negotiation atmosphere has improved. Holders have a relatively stable mentality, and their prices are quite high. It is expected that the market situation may continue to rise.

In terms of supply: In April, the overall operating rate of domestic PCs was adjusted to around 70%, and the industry is still at a three-year high load with abundant supply. In addition, some maintenance plans have been delayed and new devices have been put into operation within the month. Overall, the positive impact of April’s negative reduction on the market has been smoothed out, and the expected increase in inventory and supply in the later period has resulted in poor support for spot goods.

In terms of demand: In April, downstream PC buyers just needed to maintain production, and the business owners had a more wait-and-see mentality. The auction situation also fell short of expectations, with prices falling. At present, the starting position of terminal enterprises is not high, and the actual stocking operation has not improved, with light on-site trading. Traders’ mentality has weakened, and their offers are generally in line with the market.

Future Market Forecast

In April, the PC market was volatile, and the upstream bisphenol A market rose after consolidation, which improved the support for PC costs. However, the high load of domestic polymerization plants remains stagnant, and there is no improvement in demand side follow-up, while supply side pressure remains high. It is expected that the PC market will take some time to overcome the supply-demand contradiction and may continue to operate in a weak position.