According to data from SunSirs' "Spot Connect" service, the domestic PC market experienced narrow fluctuations throughout May, with spot prices for various grades showing mixed trends—some rising, others falling. As of May 31, the SunSirs composite benchmark price for PC stood at approximately 16,166.67 RMB/ton, representing a 1.02% decline compared to the beginning of the month.
Supply Side: During May, the operating rates of domestic PC polymerization enterprises remained at low levels and trended downward. Turnaround and maintenance plans at facilities such as Shanghai Mitsubishi and Zhejiang Petrochemical were successively implemented; consequently, the industry's overall operating load dropped to around 63%, hitting a new low for the year. Production losses continued to widen, with the current weekly average output falling below 55,000 tons. Polymerization plants faced virtually no pressure to clear inventory and demonstrated a strong willingness to maintain firm pricing. Overall, the supply side continued to provide strengthening support to the PC market.
Raw Materials: As illustrated in the chart above, the domestic Bisphenol A (BPA) market experienced initial volatility followed by a downward trend entering May. International crude oil markets underwent violent fluctuations—rebounding briefly before suffering a sharp decline. This bearish sentiment cascaded downstream to Acetone and Phenol markets; dragged down by these inputs, prices for both commodities declined to varying degrees. Furthermore, while changes in BPA supply were limited, demand continued to soften. Consequently, traders became more active in clearing inventory, adopting operational strategies that favored offering price concessions to secure orders. Within this period, price trends shifted from stability to decline, resulting in a general weakening of cost-side support for PC.
Demand Side: Sales for downstream PC manufacturers gradually entered the traditional "off-season" in May. Demand for products such as PC sheets and casings softened, leading terminal enterprises to operate at low capacity utilization rates. With current PC prices remaining at elevated levels, buyers adopted a cautious approach toward restocking. Willingness to build inventory remained low, creating a strong "wait-and-see" atmosphere within the market. The flow of goods slowed down, and trader sentiment weakened; consequently, suppliers adjusted their quotes to align with prevailing market conditions, leading to an increase in transactions secured through price concessions. The market currently holds a backlog of lower-priced inventory awaiting digestion, which is exerting downward pressure on the pricing benchmarks set by polymerization plants. In summary, demand-side factors provided weak support for PC spot prices.
Conclusion: The domestic PC market maintained a consolidating trend throughout May. Upstream Bisphenol A prices softened toward the end of the month, thereby weakening cost-side support for PC. Meanwhile, domestic PC polymerization plants continued to operate at low capacity utilization rates. On-site trading remains sluggish, driven primarily by immediate, essential demand; buyers maintain a cautious stance, purchasing only on an as-needed basis, and transactions consist predominantly of small-volume orders. Currently, both supply and demand for PC resins are weak, and market direction remains unclear; consequently, the market is expected to continue trading within a narrow range in the short term.
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