The Supply And Demand of Bisphenol A Both Increase And The Industry Prospects Are Good

The domestic production capacity of bisphenol A is relatively concentrated, and the degree of industrial chain integration is high. The upstream raw materials of bisphenol A are phenol and acetone. Phenol and acetone are simultaneously prepared from pure benzene and propylene through an isophenylpropane method. The downstream is mostly equipped with PC or epoxy resin, which has a high degree of industrial chain integration. Domestic production capacity of bisphenol A is relatively concentrated. At present, there are 10 domestic bisphenol A manufacturers with a total production capacity of 2.215 million tons, CR5 is about 70%, and CR3 is about 50%. Among them, Covestro and Changchun Chemical have the largest production capacity, accounting for the total production capacity. 20% and 18% of the total.

The higher degree of industrial chain integration has also led to a lower commercialization rate of my country's bisphenol A industry.

On the supply side, it is expected that the production capacity of bisphenol A will begin to grow rapidly in 2022. In 2021, new devices represented by Zhongsha Tianjin will be completed and put into operation one after another, and major companies continue to increase their weight. It is expected that China's bisphenol A production is expected to reach about 1.7 million tons in 2021, an increase of 150,000 tons compared with 2020, and the output will increase significantly. It is estimated that starting from 2022, as the bisphenol A plants under construction are put into operation one after another, the annual output is expected to gradually increase.

On the demand side, the continuous expansion of PC and epoxy production capacity will lead to the growth of demand for bisphenol A. The downstream demand structure of bisphenol A is concentrated, and it is mainly used for PC and epoxy resin, accounting for almost half of the proportion. In recent years, the PC industry has been in a period of rapid development, and production capacity will continue to be released in the future. It is estimated that by 2023, nearly 1.4 million tons of production capacity will be put into use, and China's total PC production capacity will be close to 3.6 million tons. With the vigorous development of domestic epoxy resin downstream, epoxy resin production capacity will also increase steadily. It is estimated that by 2023, nearly 1.5 million tons of production capacity will be put into use, and the total domestic epoxy resin production capacity will be close to 3.8 million tons. In the long run, the market demand for bisphenol A will continue to increase, and the industry prospects are good.

Given the relatively clear increase in supply and demand, we expect that BPA will continue to be tightly balanced, and the state of high prices may continue. Driven by downstream epoxy resin and PC demand, it is expected that the price and profit level of bisphenol A will remain high in the future. It is recommended to pay attention to relevant listed companies: Luxi Chemical, Rongsheng Petrochemical, and Weiyuan.