Price Cuts and Weak Demand Create Tension as October PC Prices Rise, Then Retreat

November 03, News

Price Trend

According to the bulk commodity list data, the Chinese PC market trend in October first rose and then fell. The spot prices of most grades fluctuated, and by the end of the month, they had largely returned to the price levels at the beginning of the month. As of October 31, the mixed benchmark price of PC was around 14,166.67 CNY/ton, with a change rate of -2.07% compared to early October.

Reason Analysis

Supply Side: In the first half of October, Chinese PC polymer enterprises maintained largely stable operations with minor adjustments, and maintenance releases were concentrated in the second half of the month. Zhejiang Petrochemical, Jiaxing Teijin, Luxi Line 1, Pingmei Shenma, and Lihuayi all had varying degrees of maintenance schedules. The industry's operating rate was reduced by 4% to 77%, with an average weekly production of around 65,000 tons, a decrease from the beginning of the month. Inventory levels remained firm, with limited improvement in the ample supply of PC. Overall, the supply side of PC provided stronger support.

Raw Materials Perspective: As shown in the chart above, the BPA market experienced a significant downward trend in October. After falling initially, upstream phenol prices stabilized, while acetone plunged sharply before beginning a recovery phase—neither of which provided much support for the BPA market. Additionally, weak demand from the BPA consumer end continued to weigh heavily on prices. These multiple factors combined led to a rapid decline in the spot price. Although market sentiment in China remained subdued toward the end of the month, the spot price dropped to historically low levels. However, with inventories remaining relatively manageable, companies and traders increasingly adopted a strategy of maintaining higher price levels, creating a stabilizing force at the bottom. Looking ahead, BPA prices are expected to stabilize, though support for PC costs is likely to remain weak.

Demand Side: October remains within the traditional peak season for PC, yet this year’s “Golden October” has seen less-than-ideal downstream factory utilization rates, leading to slow inventory digestion and maintaining weak, rigid demand levels for restocking. Although maintenance activities have temporarily boosted prices for certain grades, overall market trading activity has shown only limited improvement. Meanwhile, external factors—such as volatility in export markets—are putting downward pressure on shipments of finished PC products overseas. In the second half of the month, traders have increasingly focused on selling off stock to recover cash flow, resulting in a concentrated release of profit-taking supplies and causing price momentum to stall or even decline. Buyers remain cautious about higher-priced offerings, and once their immediate needs for replenishment are met, the pace of supply circulation in the market has once again slowed. Overall, demand-side support for PC spot prices remains weak.

Future Market Forecast

In October, the Chinese PC market experienced a rise followed by a decline. The upstream bisphenol A market suffered a significant drop, stabilizing at the end of the month, with no improvement in cost support for PC. In the second half of the month, the operating rates of Chinese PC polymerization plants were reduced, and market trading remained weak. With ongoing supply and demand competition, it is expected that the short-term future PC market will continue to see a consolidation trend.