SunSirs: Weak Costs and Trading, China PC Market was Flat after Falling in October

According to the bulk list data of SunSirs, the domestic PC market in October fell and leveled off, with spot prices of various brands generally decreasing. As of October 31, the mixed benchmark price of Shangshang Society PC was around 16,466.67 RMB/ton, a decrease of -2.95% compared to the beginning of the month.

In terms of raw materials, the domestic bisphenol A market accelerated its decline after the holiday. In early October, international crude oil experienced a significant decline, followed by weak fluctuations due to loose supply expectations. The market for phenol and acetone, the raw materials for bisphenol A, was not ideal. Insufficient upstream support, coupled with the restart of the Yanhua Polycarbon Bisphenol A plant within the month, has led to an increase in industry operating rates and increased supply-demand conflicts. Overall, there is poor support for PC cost side.

On the supply side, the overall operating rate of domestic PCs rose in October and then fell, with the industry load increasing from around 68% at the beginning of the month to about 72%. At the end of the month, the industry's load returned to 66%, and some devices originally scheduled for maintenance in October were delayed. The overall supply of goods on site was abundant, and the smoothness of enterprise shipments was poor. The factory price fell, providing moderate support for spot prices.

In terms of demand: In the early stage, there were many stocking operations during the traditional consumption peak season of the "Jinjiu" PC. As October entered, the enthusiasm of terminal enterprises to pick up goods decreased, and there was still raw material inventory to digest, resulting in poor demand for on-site stocking. The starting position of the superimposed terminal enterprises is not high, and the concern of the industry towards the market has increased. In October, the demand side has poor support for spot prices.

The PC market stabilized after a decline in October. The upstream bisphenol A market is weak, weakening support for PC costs. Domestic polymerization plants operate with fluctuating loads, and the market has ample spot supply. 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. In November, there are plans for large-scale equipment maintenance, and it is expected that the PC market will be supported by it in the short term, leading to a stronger decline.

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