SunSirs: Cost Side Pressure, China PC Market Is Weak in mid November

According to the bulk ranking data from SunSirs, the domestic PC market was mainly volatile in mid November. The spot prices of most brands are fluctuating. As of November 18th, the mixed benchmark price of Business Society PC is around 13,766.67 RMB/ton, with a price increase or decrease of -2.82% compared to early November.

Supply side: In the early stage of October, domestic PC aggregation enterprises had relatively concentrated maintenance, and it is planned to gradually restart by the middle and end of this month. Recently, there has been a mutual occurrence of factory restart and maintenance. Zhejiang Petrochemical has announced a maintenance plan covering multiple production lines, and some production lines of Luxi Chemical have also entered shutdown. After the full restart of Lihua Yiwei Yuan, the supply has resumed, and the industry's operating rate has been narrowly increased by 2% to over 76%. The weekly average production is close to 64,000 tons, which has increased compared to the first ten days. After preliminary digestion, the current position of inventory is relatively controllable. Overall, the PC supply side has limited support for PC changes. The expected loose supply of goods in the future may increase the pressure on factories to sell.

In terms of raw materials, it can be seen from the above chart that the bisphenol A market continued to decline in mid November. The low price position of upstream phenol acetone is difficult to predict a positive outlook for the bisphenol A market. In addition, there has been no improvement in the consumer side of bisphenol A, and multiple factors have led to low and weak spot prices. Although the current domestic market atmosphere is still bleak, spot prices have fallen to low levels. In addition, with no pressure on factory inventory, there has been an increase in price manipulation between enterprises and merchants, forming a bottoming force. It is expected that the price of bisphenol A will remain stable in the future, but the support for PC costs will still be weak.

On the demand side: The load position of downstream factories is still not ideal, and inventory is kept buying at low prices, with weak demand levels. The export market is synchronously sluggish, and PC terminal enterprises are conservative in their production scheduling. Merchants within the range tend to follow the market trend and adopt a cautious and wait-and-see attitude. After meeting the demand for filling vacancies in the early stage, the market trading atmosphere returned to calm, and the speed of goods circulation slowed down again. Overall, the demand side provides moderate support for PC spot prices.

In mid November, the domestic PC market remained stable with some weakness. The upstream bisphenol A market fell at a low level, and the cost value did not provide good support for PC. The load of domestic PC aggregation plants is stable with small fluctuations, and there is an expectation of a rebound in the future market. The market trading situation remains weak, with long and short positions in the market. It is expected that the PC market will enter a stalemate and consolidation trend in the short term.

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