According to data from SunSirs' "Spot Connect" service, the domestic PC (polycarbonate) market underwent a period of consolidation in early May, with spot prices for certain grades showing mixed trends—some rising, others falling. As of May 10, the SunSirs composite benchmark price for PC stood at approximately 16,233.33 RMB/ton, representing a 0.61% decline compared to the beginning of the month.
Supply Side: In early May, operating rates at domestic PC polymerization plants continued to trend downward. During this period, Cangzhou Dahua halted its entire production line for maintenance, bringing the industry-wide operating load to around 74%. Furthermore, upcoming maintenance schedules—including those for Shanghai Mitsubishi and Zhejiang Petrochemical—are already on the agenda, leading to expectations of further production losses. Currently, the weekly average output exceeds 60,000 tons; overall, the supply side continues to provide moderate support to the PC market.
Raw Materials: As illustrated in the chart above, the domestic Bisphenol A (BPA) market continued the low-level consolidation trend observed at the end of April. Influenced by fluctuations in international crude oil prices and a decline in phenol prices, the price center of gravity for domestic BPA was dragged downward. Concurrently, changes in BPA supply remain limited while demand continues to soften; consequently, traders are keen to offload inventory and are increasingly inclined to offer price concessions to secure orders. Overall, the cost-side support for PC prices has weakened.
Demand Side: As profitability among downstream end-users has yet to show improvement, the transmission of high spot PC prices to these sectors has met with resistance. Operating rates at downstream PC processing plants remain at relatively low levels. Although current PC prices have retreated from their recent peaks, they still hover within a range representing a three-year high. Buyers have reverted to a cautious stance regarding inventory stocking, showing little inclination to build new positions. With pre-holiday inventory still requiring digestion, a strong "wait-and-see" atmosphere prevails in the market, resulting in sluggish cargo circulation. Trader sentiment remains weak; quotes are largely adjusted to align with prevailing market conditions, and the practice of offering price concessions to secure orders is on the rise. In summary, the demand side currently offers weak support for spot PC prices.
In early May, the domestic PC market underwent a period of high-level consolidation. Upstream BPA prices consolidated with a downward bias, providing only moderate cost-side support to the PC market. Operating rates at domestic PC polymerization plants saw a slight reduction; while further declines are anticipated, the positive impact from the supply side remains limited. Market trading activity is subdued and driven primarily by rigid, immediate-use demand; buyers remain cautious, purchasing only on an "as-needed" basis, and transactions largely consist of small-volume orders. In the short term, PC market trends are expected to remain dampened by fluctuations in cost values, potentially leaving further room for downward adjustment.
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