SunSirs: Rebounding after Falling, China PC Weakened and Consolidated in December 2023

According to the bulk list data from SunSirs, the domestic PC market slightly recovered after a decline in December, with spot prices of various brands fluctuating and consolidating. As of December 31st, the benchmark price for the mixed PC of SunSirs was around 15,683.33 RMB/ton, with an increase or decrease of -0.32% 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 was mainly in decline in December. The main reason for the continuous decline of bisphenol A in this round is that there are many device restarts; The second is the production of new devices, with sufficient supply; Thirdly, the demand remains sluggish, while the support for PC cost is weakening.

In terms of supply: In December, the overall operating rate of domestic PC remained stable with little movement, and the industry load increased from around 64% at the beginning of the month to over 67% at the end of the month. The supply of goods on site is generally abundant, with some PC polymerization devices resuming work delayed in the middle of the month, and supply gradually tightening. The smoothness of enterprise shipments has slightly improved, and the factory price has hit a bottom before a narrow correction in the latter half of the year, providing general support for spot prices.

In terms of demand: As we enter December, 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. By the end of the year, the starting position of terminal enterprises was not high, and the market concerns of operators increased. In December, the demand side provided poor support for spot prices.

After the decline in the PC market in December, there was a narrow recovery. The upstream bisphenol A market has fallen, providing weak support for PC costs. The domestic polymerization plant load has slightly increased, and the market spot supply has tightened at the end of the month. Traders have a weak mentality, bottoming out after a decline in prices, and experiencing a narrow rise at the end of the month. Downstream enterprises have poor enthusiasm for receiving goods. Under the supply and demand game pattern, it is expected that the PC market will continue to consolidate in the short term.

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