SunSirs: Weak Raw Materials and Negative Demand, China PC Market Declined in the First Half of October

According to the bulk list data of SunSirs, the domestic PC market declined in the first half of October, with spot prices of various brands generally decreasing. As of October 13th, the mixed benchmark price of Shangshang Society PC is around 16,600 RMB/ton, a decrease of -2.46% compared to the beginning of the month.

In terms of raw materials: From the above figure, it can be seen that the domestic bisphenol A market has accelerated its decline after the holiday. During the holiday, international crude oil plummeted significantly, causing both phenol and acetone, the raw materials for bisphenol A, to decline. Insufficient upstream support, coupled with the recent restart of the Yanhua Polycarbon Bisphenol A plant, has led to an increase in industry operating rates and increased supply-demand conflicts. Overall, there is poor support for PC cost side.

In terms of supply: After the holiday, the overall operating rate of domestic PC has slightly increased, and the industry load has increased from around 68% at the end of last month to about 72%. At present, some devices have short-term maintenance plans, but the loss of production capacity is not significant, and it is speculated that the impact is limited. The supply of goods on site has increased significantly, but the confidence of enterprises has been affected. The factory price has fallen, providing general support for spot prices.

In terms of demand: Before the holiday, there are too many traditional stocking operations for PC during the peak consumption season. Currently, terminal enterprises mainly focus on digesting early inventory, and the demand for on-site stocking is poor. In terms of auction, the simultaneous contraction of volume and price, coupled with the low starting positions of terminal enterprises, has led to increased market concerns among operators. In the first half of October, demand side support for spot prices was poor.

The PC market declined in the first half of October. The upstream bisphenol A market is weak, weakening support for PC costs. The load of domestic polymerization plants has increased, leading to an increase in spot supply in the market. Traders have a weak mentality and tend to offer at a discount. Downstream enterprises are chasing gains and selling, with poor enthusiasm for receiving goods. It is expected that the PC market may continue its weak trend in the short term.

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