SunSirs: In November, the Domestic Bisphenol A Market First Suppressed and Then Rose

Price trend

The domestic bisphenol A market first suppressed and then rose, mainly due to mid month equipment maintenance and unplanned parking, which tightened the supply of bisphenol A in the market and drove it up. According to the Commodity Analysis System of SunSirs, on November 1st, the mainstream market price of bisphenol A was quoted at 10,062 RMB/ton, and on November 15th, it was quoted at 9,450 RMB/ton. At the end of the month, the market once again rose to 10,137 RMB/ton, with a monthly amplitude of 7.28%.

Analysis review

Entering November, the two major downstream epoxy resins and PC of bisphenol A had fluctuated and weakened, and the high levels of phenol and acetone at the raw material end had rebounded. The market sentiment of bisphenol A had weakened, and some factories and intermediaries increased their intention to reduce inventory. Low price quotations were frequent, and the bisphenol A market had fallen from 10,062 at the beginning of the month to 9,450 RMB/ton on November 15th.

In the second half of the month, with the decrease in market inventory, some domestic equipments equipments were shut down for maintenance. Among them, Cangzhou Dahua experienced a malfunction shutdown on November 12, Jiangsu Ruiheng Phase I experienced a malfunction shutdown on November 17, Zhejiang Petrochemical Phase I equipment was shut down for maintenance on November 21, and Changchun Chemical's 270,000 tons/year equipment was shutdown in the first half of the month. The supply side was expected to tighten significantly, and in the second half of the month, both raw materials rose, supported by cost side support, The bisphenol A market in East China had expanded to 10,100-10,150 RMB/ton.

Market outlook

On the supply side, the shutdown and maintenance of bisphenol A decreased in December, and the maintenance equipment in November mostly stabilized in operation in December. In addition, three new bisphenol A equipment are planned to be put into operation. Considering the supporting equipment, the supply chain still has a significant increase in December. On the demand side, there is a lack of significant benefits for downstream epoxy resins and PC terminals. Despite the expectation of new equipment being put into operation, the growth rate of demand is far lower than the supply expectation. From a cost perspective, the short-term fluctuations in the operation of the dual raw materials phenol and acetone are the main factors. Considering the continuous loss of bisphenol A in the early stage, the impact of cost on bisphenol A may be relatively small. SunSirs predicts that, considering the many variables in the production of new devices and the difficulty in achieving significant positive demand, the bisphenol A market in East China may show a trend of first rising and then falling.

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