According to the bulk ranking data of SunSirs, the domestic PC market has been stable with small fluctuations recently, and some spot prices of certain brands have been raised narrowly at low levels. As of June 17th, the mixed benchmark price of SunSirs PC is around 14,500 RMB/ton, with a price fluctuation of -0.75% compared to early June.
On the supply side: In mid June, the load of domestic PC aggregation enterprises continued to rebound. Both Zhejiang Petrochemical and Luxi Chemical have returned to production capacity, with the industry average operating level increasing by 3% to 85% compared to the first ten days, and the weekly average output increasing to over 68,000 tons. There is a technical upgrade task for the equipment in Cangzhou Dahua in the later half of the year, and it is expected to be shut down for one month. However, the production loss is limited, and there have been few recent arrangements to reduce negative loads. In addition, PC inventory has remained high for a long time, and the on-site supply is very abundant. Manufacturers and midstream inventory levels remain high, with no reduction in shipping pressure, and there has been no improvement in the market supply side's support for PC prices.
In terms of raw materials, it can be seen from the above chart that bisphenol A continued its weak trend in mid June. Although the strong upstream crude oil market in the far end has driven the recovery of PC direct raw materials acetone and phenol, the transmission of positive news to PC still needs a process. On the other hand, due to the increased workload of the PC industry in the early stage, the on-site supply of goods has increased. However, downstream demand is sluggish. Overall, the supply-demand imbalance of bisphenol A remains unchanged, and its support for PC costs continues to weaken.
On the demand side: With the gradual warming of the domestic climate, the downstream factories of PC are experiencing a decrease in load, and stocking is mainly due to weak demand, gradually entering the traditional off-season for consumption, further dragging down the PC consumer end. Due to the long-term weak market dynamics in the industry, high social inventory, and abundant supply of goods in the market, the supply-demand contradiction in mid June did not improve, but rather showed a profound impact. At present, terminal enterprises are cautious in purchasing new orders, and their trading performance continues to be dominated by 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.
In June, the domestic PC market in China was consolidating at a low level. The upstream bisphenol A market continues to decline, providing poor support for the cost value of PC. The load of domestic PC aggregation plants continues to rise, and the pattern of strong supply is even more severe. However, downstream demand is at a low season level, and industry players remain pessimistic 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. At present, the market is only favorable in the upstream sector, and it is expected that the PC market will continue to consolidate weakly in the future.
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