June 30th, News
In June, the Chinese bisphenol A market continued to weaken, with the spot price center steadily declining, presenting an overall downward trend characterized by weak supply and demand and a loss of cost support. During the month, market transactions were sluggish, manufacturers faced significant pressure to move inventory, industry profit margins were continuously squeezed, and there was a lack of robust follow-up from end-user demand, with a pessimistic sentiment pervading the entire month.
The loosening of cost support has been a key driver behind the downward trend in BPA prices this time. In June, international crude oil prices showed weak performance, and coupled with the easing of tensions in the Middle East, commodity markets as a whole came under pressure, prompting a decline in chemical feedstock prices. Spot prices for core raw materials—phenol and acetone—continued to fall, while the pure benzene market also remained at low levels, completely eroding BPA’s cost floor. The sharp drop in raw material prices has significantly widened room for product price reductions, driving down companies’ production costs continuously and further compelling BPA market prices to follow suit and decline.
The loose and oversupplied situation on the supply side continues to intensify the weak market trend. As the phenol and acetone industry's maintenance units restart in batches, coupled with the continuous release of new production capacity, the overall operating rate of bisphenol A in China remains high, ensuring an abundant supply of goods in the market. At the same time, imported goods have been replenished, further increasing the number of goods circulating in the market. The inventory pressure in the industry continues to rise, and manufacturers are actively reducing prices to clear inventory, leading to intensified price competition in the market.
Weak terminal demand is the core factor dragging down the market. In June, the downstream epoxy resins and PC industries entered the traditional off-season for consumption. Demand in terminal sectors such as construction materials, coatings, and wind power remained persistently low, with insufficient new order growth. Downstream companies mainly focused on consuming their existing inventories, making only small purchases as needed, without any concentrated stockpiling activities. The market's rigid demand support was severely inadequate, and the mismatch between supply and demand became increasingly prominent.
Overall, the bisphenol A market in China continued to decline in June, hit by a triple whammy of costs, supply, and demand. The core issue of oversupply in the industry is unlikely to be resolved in the short term, with inventory pressure still present. It is expected that the bisphenol A market in China may continue to show a weak and volatile trend in the near future, with prices likely to remain at low levels.
