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SunSirs: Negative Factors Dominated Upstream and Downstream, Bisphenol A Plunged by 20% (May 22-28)

May 31 2021 14:35:29     SunSirs (John)

Price trend

The bisphenol A market in East China continued to fall this week, with a significant decline. According to the monitoring data of SunSirs, the negotiated price of bisphenol A in the market near the weekend was close to 20,000 RMB/ton, and the price of bisphenol A fell by more than 20% this week. The overall performance of the bisphenol A market this week was extremely poor. Although the holders kept lowering their offers, there were few market inquiries, and low prices in the market appeared endlessly every day. The continued low price rumors affected the market mentality. This week, Changchun Chemical lowered 5,000 RMB/ton to 22,000 RMB/ton, and negative factors increased. The transaction situation was even worse, and it was hard to say that it is good in the short term due to the seriously frustrated mentality.

Analysis review

From the perspective of raw materials, the phenol market was stable this week with small fluctuations. The negotiated price was 9,350-9,400 RMB/ton. Port stocks declined near the weekend. Although the holders intended to push the market up, due to the low participation in the terminal market, the wait-and-see sentiment increased, and the market was weak on weekends. The acetone market fell sharply this week. According to the monitoring data of SunSirs, the ex-factory price of acetone in East China fell by 15.64%, while the market price fell by 6.6%. Therefore, the factory adjusted more this week, and the market continued its previous decline. Near the weekend, the offer rebounded slightly, and the negotiation range was 5,500-5,700 RMB/ton.

Downstream liquid epoxy resin continues to be in a downturn, and the weak trend was obvious in this week. The liquid epoxy resin negotiation in East China dropped to 28,000-29,000 RMB/ton, and the solid epoxy resin negotiation fell to 25,500 RMB/ton. The main reason for the decline in the epoxy resin market was that it was greatly affected by the overall decline in dual raw materials. The decline in bisphenol A was particularly pronounced. The cost support was unfavorable and the manufacturers were under greater pressure on shipments. However, due to the early-stage cost of epoxy resin, the short-term decline was limited. New orders were mostly subject to a single negotiation, and the factories mostly suspended their offers and focused on real-order negotiations. It is hard to say that the epoxy resin industry is positive in the short-term, and the market transaction is insufficient.

Market outlook

According to SunSirs, on the one hand, due to the sluggish terminal demand market, holders have a serious bearish mentality. Under the influence of the mentality of buying up and not buying down, the terminal's wait-and-see sentiment on raw materials has increased. On the other hand, the cost side has fallen, and the chemical industry as a whole has shown a downward trend after being named in the bulk market, and the downstream of the industrial chain has been negative, and the market mentality has been seriously frustrated. SunSirs expects that the bisphenol A market will continue its downward trend in the short term, and the East China market offers a reference at around 20,000 RMB/ton.

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