SunSirs: Loose Supply to Smooth Out Raw Materials and Reduce Profits, China PC Market Remains Stable with Small Fluctuations

According to the bulk ranking data from SunSirs, the domestic PC market in China had a weak consolidation in July, with some spot prices of certain brands experiencing a narrow decline. As of July 16th, the mixed benchmark price of Business Society PC is around 14,350 RMB/ton, with a price increase or decrease of -0.81% compared to early July.

On the supply side: In the first half of July, domestic PC aggregation enterprises experienced a combination of maintenance and restart, resulting in a narrow reduction in load. Enterprises such as Sichuan Tianhua and Shengtong JuRMB in the interval have been undergoing maintenance one after another, and Pingmei Shenma has resumed after a short shutdown. The industry average operating level has been lowered to 75%, and the weekly average output is around 63,000 tons. However, PC supply has been abundant for a long time, with high inventory levels remaining stagnant, and on-site sources of goods still maintaining a sufficient level. After the addition, it is expected that Cangzhou Dahua will restart, but the pressure on shipments will still not decrease, and the market supply side is generally supportive of PC prices.

In terms of raw materials, it can be seen from the above chart that bisphenol A fell and then remained sideways in mid July. Upstream acetone and phenol are also at a low level, dragging down spot prices. Meanwhile, bisphenol A is also affected by the supply-demand imbalance, with little change in demand and a lack of upward momentum in the market. Overall, the intraday market trend of bisphenol A has weak support for PC costs.

On the demand side: With the arrival of the traditional off-season in July, the downstream factories of PC have seen a decrease in load, with weak stocking and rigid demand as the main factors, further dragging down the consumer end. Due to the long-term weak market dynamics in the industry, high social inventory, and abundant on-site supply, the supply-demand contradiction within the range has not improved. At present, terminal enterprises are cautious in purchasing new orders, and their trading performance continues to be dominated by contract delivery. Merchants tend to have a wait-and-see attitude, buyers are resistant to high priced goods, and the flow of goods in the market is slow. Overall, the demand side has weak support for PC spot prices.

The domestic PC market in China experienced weak consolidation in July. The upstream bisphenol A market is consolidating at a low level, which provides poor support for the cost value of PC. The upstream concessions have made it difficult for the industry to operate at a high level, and the overall load of domestic PC aggregation plants remains stable with small fluctuations, while the pattern of strong supply remains unchanged. The off-season characteristics of downstream demand are obvious, and industry players are adopting a wait-and-see attitude towards the future market. However, with low PC prices and limited downward space, the current market is characterized by both long and short positions, and it is expected that the PC market will enter a stalemate in the future.

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