Raw Materials Strengthen; PC Prices Show Volatility with a Rise at Late January

January 27 News

Price Trend

According to the bulk commodity list data, at the end of January, the PC market in China showed a fluctuating upward trend, with spot prices for most grades increasing. As of January 27, the mixed benchmark price for PC was around 13,100 CNY/ton, representing a change rate of -0.76% compared to the beginning of the month.

Reason Analysis

Supply Side: In the second half of January, the overall load of China's PC polymer enterprises remained largely stable with minor fluctuations. The second line of Zhejiang Petrochemical, which had been restarted on January 23, brought the industry's average operating rate back to over 81%, with weekly production exceeding 65,000 tons. As social inventory was somewhat digested mid-month, the sales and production pressure on polymer plants was manageable. Overall, the supply side provided moderate support for PC.

Regarding Raw Materials: As shown in the chart above, the Chinese bisphenol A market experienced a significant upward trend at the end of January. At the beginning of the month, supply tightened while demand showed marginal improvement. Currently, the upward momentum of phenol and acetone continues, and cost support has strengthened. Driven by the cumulative effect of multiple positive factors, market prices have been steadily rising, traders are showing strong willingness to hold prices, and the overall trading atmosphere has markedly warmed up. The supportive impact on PC costs has also improved.

Demand Side: Although the profitability of end-user companies has improved only marginally, downstream PC factories still face less-than-ideal operating rates. The concentrated delivery of previously contracted orders has gradually come to an end, easing localized supply shortages. With polymer processors jointly supporting prices as a protective measure, traders are increasingly resorting to offering discounts to facilitate sales. However, after prices rose, buyers have become more cautious about restocking, and their willingness to build inventories ahead of the holiday season is weak. Overall, demand-side support for PC spot prices remains moderate.

Future Market Forecast

At the end of January, the PC market in China showed an increase. The overall situation of upstream bisphenol A remained positive, with cost values providing moderate support to PC. The load of PC polymerization plants in China was largely stable with minor fluctuations, and there is a trend toward easing supply in the future. The trading atmosphere in the market has returned to being cautious, and it is expected that the PC market may undergo some consolidation in the short term.