SunSirs: Affected by Consumer and Cost Factors, China PC Fell in November

According to the bulk list data of SunSirs, the domestic PC market gradually declined in November, and spot prices of various brands were generally lowered. As of November 30th, the mixed benchmark price of Shengyishe PC was around 15,733.33 RMB/ton, with a decrease of -4.45% compared to the beginning of the month.

In terms of raw materials: From the above chart, it can be seen that the domestic bisphenol A market has recovered after a decline this month. The decline in international crude oil during the month dragged down the phenol and acetone prices in the first half of the month. Insufficient upstream support led to the shutdown and maintenance of Zhejiang Petrochemical's 240,000 tons/year bisphenol A plant at the end of the month. Good supply supported a slight recovery in spot prices, but overall support for the PC cost side was poor.

On the supply side, the overall operating rate of domestic PCs in November rose but then fell, and the industry load narrowed down from around 66% at the beginning of the month to about 64%. The maintenance and resumption of work of the PC aggregation device within the month have mutually occurred, and the overall supply of goods on site is abundant. The smoothness of enterprise shipments is poor, and the factory price has fallen, providing moderate support for spot prices.

In terms of demand: As we enter November, the enthusiasm of terminal enterprises to purchase goods is low, and the main logic leans towards digesting inventory, resulting in poor demand for on-site stocking. Due to the low starting position of terminal enterprises and increased market concerns among operators, the demand side provided poor support for spot prices in November.

The PC market continued to decline in November. The upstream bisphenol A market rebounded after falling, providing weak support for PC costs. The domestic polymerization plant has a stable load with small fluctuations, and the market has abundant spot supply. Traders have a weak mentality and tend to offer at discounted prices. Downstream enterprises are chasing gains and selling, with poor enthusiasm for receiving goods. Overall, whether it is the weak fundamentals at present or the weak expectations at the end of the year in the future, the PC market may continue to operate weakly in the short term due to the difficulty of finding good news.

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