According to the bulk ranking data of SunSirs, the domestic PC market fell at a low level at the end of May, and the spot prices of some brands were lowered. As of May 26th, the mixed benchmark price of Business Society PC is around 14,783.33 RMB/ton, with a price increase or decrease of -4.52% compared to early May.

On the supply side: As we enter late May, domestic PC aggregation enterprises will experience high and stable loads with small fluctuations. The current industry average operating level is 73%, which is basically the same as mid month. The weekly average production has stabilized at below 60,000 tons. Both Luxi Chemical and Wanhua Chemical have the potential to increase their load in the future, and PC inventory has remained high for a long time. Only Yanhua Polycarbonate has gradually stopped production, and the supply is at a high level. The on-site supply is very abundant. Manufacturers and midstream inventory are high, with limited improvement in shipping pressure, and the market supply side provides average support for PC prices.

In terms of raw materials, it can be seen from the above chart that the price of bisphenol A was relatively weak at the end of May. Downstream enterprises have inventory to be digested in the early and post holiday period, resulting in sluggish trading on site. At the same time, the industry load has increased recently, and the on-site supply of goods has increased. In terms of raw materials, both acetone and phenol have weakened, which has dragged down spot prices and caused fluctuations in the upstream crude oil market. Overall, bisphenol A has poor support for PC costs due to the supply-demand imbalance and cost impact.

In terms of demand, PC consumption continued to follow the pattern of rigid demand at the end of May, and new orders in the market remained basically at the same level as the same period in previous years. The downstream factories are operating normally and stocking up is proceeding as planned. Due to the long-term weak market dynamics in the industry, high social inventory, and abundant on-site supply, the contradiction between supply and demand tends to lead to destocking. Before the Dragon Boat Festival, there was no significant volume of new order purchase, and the trading performance continued the pattern of contract delivery. Merchants tend to have a wait-and-see attitude, buyers are resistant to high priced goods, and the flow of goods in the market is slow. Overall, the demand side has weak support for PC spot prices.

At the end of May, the domestic PC market fell at a low level. The upstream bisphenol A market is weakly consolidating, providing poor support for the cost side of PC. The load of domestic PC aggregation plants is generally flat, and the pattern of strong supply remains unchanged. However, there is a trend of supply recovery in some areas, while downstream demand follows the logic of essential demand, and industry players remain cautious about the future market. At the same time, the industry's inventory is high, and the seller camp is willing to sell and sell at a discount. It is expected that the PC market will remain stagnant and consolidate in the short term. It is recommended to closely monitor the industry's inventory digestion situation.

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