According to data from SunSirs, the domestic PC market experienced a significant decline in early June, with substantial drops in spot prices across various grades. As of June 9, the benchmark price for PC (mixed grades) stood at approximately 14,633.33 RMB/ton, marking an 8.73% decrease since the beginning of the month.
Supply Side: Entering June, operating rates among domestic PC polymerization plants rebounded from low levels. Keenchuang recently resumed operations, and Luxi Chemical increased the load across three production lines, pushing the industry-wide operating rate above 65%. With plans for several other polymerization plants to restart, the loss in production volume is gradually narrowing; current average weekly output is approaching 60,000 tons. As the pace of shipments from polymerization plants slows, the willingness to maintain high prices has weakened. Overall, the supply side is providing diminishing support for PC prices.
Raw Materials: As shown in the chart above, the domestic Bisphenol A (BPA) market stabilized in early June after an initial decline. International crude oil prices fluctuated sharply, while the prices of raw materials—acetone and phenol—showed mixed trends. Following a decline from late May to early June, BPA spot prices have reached a cyclical low. With limited changes in supply and demand remaining at a weak, essential level, the market has entered a stalemate, offering overall weak cost support for PC.
Demand Side: Downstream PC factories are entering the off-season; demand for products such as sheets and casings has softened, and operating rates at end-user enterprises remain low. With PC prices falling from highs, a strong wait-and-see sentiment prevails in the market. Buyers are stocking up cautiously and show little interest in building inventory. The flow of goods has slowed; traders are adjusting quotes to market conditions and increasingly offering price concessions to secure orders. Low-priced inventory in the market still needs to be cleared, exerting downward pressure on the pricing levels set by polymerization plants. Overall, demand-side support for PC spot prices is weak.
The domestic PC market suffered a sharp decline in early June. Upstream BPA prices stabilized after falling, failing to provide significant cost support for PC. Operating rates at domestic PC polymerization plants rose from low levels, and expectations remain for increased supply in the future. Trading activity in the market is subdued, driven primarily by essential demand; buyers are inclined to follow market trends—buying on the rise and selling on the decline—and are stocking up cautiously, with transactions mostly involving small volumes. Currently, the PC market faces rising supply and weak demand, resulting in a bearish sentiment; the market is expected to remain sluggish in the short term.
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