Business Society: China’s Bisphenol A Market Stops Falling and Starts Rising in December

December 26, news

In December 2025, the Chinese bisphenol A market reversed its previously persistent downturn and entered a recovery phase. With the combined benefits of supply contraction, marginal improvement in demand, and strengthened cost support, market prices steadily rose from their early-month lows. Traders showed strong support for higher prices, and the market trading atmosphere significantly improved. As of December 25, the benchmark price of bisphenol A was reported at 7604.00 CNY/ton, up 426 CNY/ton from 7178.00 CNY/ton on December 1, representing a cumulative price increase of 5.93%, clearly indicating a phase of rebound.

Supply-side contraction: Plant maintenance reduces capacity, sharply cutting market supply.

The substantive contraction in supply is the core driving force behind the current rebound in the bisphenol A market. In December, several major bisphenol A producers in China entered maintenance or reduced production, leading to a significant decline in the industry's operating rate. The actual market supply decreased by about 15% compared to normal levels. Specifically, Changchun Chemical and Nantong Xingchen both reduced their production to 50-60% of capacity starting from mid-December. Nantong Xingchen's 150,000 tons/year bisphenol A facility mainly serves downstream epoxy resins and long-term contract users, with very little spot sales. Nan Ya Plastics (Ningbo)'s first-phase facility entered a shutdown for maintenance, further reducing market supply. Shandong Fuyu Petrochemical's 180,000 tons/year bisphenol A facility has been shut down since September and will remain so until January 2026, only maintaining price increases without any actual spot supply.

Meanwhile, the overall inventory of the industry is at a low level, further intensifying the supply tension. Major companies such as Lihuayi Weiyuan and Wanhua Chemical are all experiencing low inventory levels. Among them, Lihuayi Weiyuan's two 240,000 tons/year plants are operating smoothly, but the volume of spot sales is small, mainly supplying long-term contract users; Wanhua Chemical's two 480,000 tons/year plants are operating normally, with products mainly supporting downstream 600,000 tons/year PC facilities and contract users, resulting in limited spot circulation. The combination of supply reduction and low inventory provides a solid foundation for the upward trend of market prices.

Demand improvement: Downstream operations pick up, and rigid restocking demand is released

In early December, the two core downstream industries of bisphenol A—polycarbonate (PC) and epoxy resins—experienced a synchronized rebound. On the one hand, as the year draws to a close, end-user sectors are ramping up production to meet deadlines, leading to increased orders in industries such as electronics and electrical appliances, as well as composite materials, thereby boosting demand for upstream raw material procurement. On the other hand, after the entire industrial chain had largely cleared its inventories to relatively low levels earlier on, PC and epoxy resin manufacturers had generally adopted a low-inventory strategy. As production loads have risen, raw material reserves have been rapidly depleted, resulting in varying degrees of raw material shortages and compelling companies to step up their restocking efforts.

Looking ahead, the Chinese bisphenol A market is likely to remain firm and consolidate in the short term. On the supply side, the industry’s current low-inventory situation is unlikely to change in the near term; major producers will continue their maintenance and capacity-reduction measures, leaving the tight supply situation largely unresolved. On the demand side, although downstream restocking demand has partially eased, year-end rush orders continue to provide support, ensuring that rigid demand procurement remains at a certain level. As for costs, the markets for raw materials phenol and acetone are expected to remain stable, providing ongoing cost support. Under the combined influence of these multiple factors, market prices are set to stay at a relatively high level around 7,600 CNY per ton in the short term, and traders’ bullish stance is unlikely to change.

In the medium term, there is a risk of market correction. On one hand, after the downstream restocking cycle ends, if terminal consumption fails to keep up, the support from demand will weaken, and downstream enterprises' resistance to high-priced raw materials may intensify, leading to inventory clearance pressure in the market. On the other hand, with the restart of maintenance facilities such as Shandong Fuyu Petrochemical in January 2026, the market supply will gradually recover, and the mismatch between supply and demand is expected to improve. Additionally, attention should be paid to the macroeconomic environment and the recovery of terminal industries. If terminal demand remains weak, the upward trend in the bisphenol A market will be difficult to sustain, and prices may experience a phase of correction.