SunSirs: China PC Market Is Struggling to Operate at a Low Level in August

According to the bulk ranking data from SunSirs, the domestic PC market fell at a low level in August, and the spot prices of most brands continued to decline. As of September 1st, the mixed benchmark price of Business Society PC is around 14,250 RMB/ton, with a price fluctuation of -0.58% compared to early August.

On the supply side: In August, the load of domestic PC aggregation enterprises increased, rising from 77% at the end of last month to 82%. In the early stage, Sichuan Tianhua, Cangzhou Dahua, and Pingmei Shenma were all restarted, and later Shengtong JuRMB also had plans to increase its burden. Only a portion of Wanhua Chemical's facilities within the interval have established rotating rest and parking arrangements. At the end of the month, the average weekly production level was close to 69,000 tons, and the on-site supply was abundant. In terms of inventory, there is a high-level stalemate, and the pattern of abundant PC supply remains unchanged. The shipment pressure of the aggregation plant remains unchanged, and the market supply side has poor support for PC prices.

In terms of raw materials, it can be seen from the above chart that bisphenol A gradually declined in August. Upstream phenol acetone rises and levels, with limited boost to bisphenol A. On the other hand, the supply of bisphenol A is still in a loose pattern, while the weak demand has not changed, and the market lacks upward momentum. Overall, the downward potential of bisphenol A market in the future may not be significant, but it does not provide strong support for PC costs.

In terms of demand: Currently, PC is at the junction of traditional off-season and peak season, but downstream factory loads have not rebounded, inventory remains at a weak level of rigid demand, and there has been no early warehouse construction operation. Due to the long-term weak market dynamics in the industry, high social inventory, and abundant on-site supply, it is difficult to improve the supply-demand contradiction within the range. In addition, with weak foreign trade orders, terminal enterprises are under pressure and are resistant to high priced sources of goods. On the other hand, the financial pressure on traders has increased synchronously, and there has been an increase in the practice of offering discounts and taking orders. The circulation speed of on-site goods is slow, and the trading performance continues to be dominated by contract delivery. Overall, the demand side has weak support for PC spot prices.

The domestic PC market fluctuated and weakened at a low level in August. The upstream bisphenol A market remains weak, providing little support for the cost value of PC. The load of domestic PC aggregation plants remains stable at a high level, and the pattern of strong supply remains unchanged. Downstream demand has not increased significantly, and industry players are adopting a wait-and-see attitude towards the traditional peak season. At present, PC prices are at a historical low, and it is recommended to closely monitor the increase in demand within the market.

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