SunSirs: The Iimbalance between Production and Sales is Difficult to Change, China PC Market Remained at a Low Level in July

https://www.chemnet.com   Aug 02,2024 SunSirs

According to the bulk ranking data from SunSirs, the domestic PC market stopped falling and consolidated in July, with small fluctuations in spot prices of various brands. As of July 31st, the mixed benchmark price of SunSirs PC is around 16,466.67 RMB/ton, with a price increase or decrease of +0.10 compared to July 1st.

In terms of raw materials, it can be seen from the above chart that the domestic price of bisphenol A strengthened in July. Although the upstream phenol and acetone fluctuated within the month, the support for bisphenol A on the raw material side remained limited. But the industry load has dropped to below 65%, the supply of goods has shrunk, and there is a favorable situation on the supply side. Downstream stocking is urgently needed for procurement, and the flow of goods has slightly improved. Overall, bisphenol A has increased its support for PC costs. However, bisphenol A has stabilized after stagflation and is expected to consolidate in the future market, which does not provide further support for PC assistance.

On the supply side: In July, the overall operating rate of PC in China was narrowly reduced, and the industry average operating rate decreased by 1% to below 73% compared to the end of June. Although there was news of Hengli Petrochemical's new material sales in the middle of the month, the spot prices fell to the lowest point of the year in the early stage, and producers increased their bottoming operations by raising prices. The ex factory pricing remained firm, and some auction houses were sold at a premium. However, the scale of the future maintenance plan is average, and the on-site supply of goods will still remain abundant. Overall, the market supply side generally provides moderate support for PC prices.

In terms of demand, PC consumption in July has taken on a relatively weak pattern in the early stage, with the main logic leaning towards maintaining production and digesting inventory for essential needs. Downstream enterprises have low loads, reduced stocking enthusiasm, and a narrow decline in consumption. Buyers have some resistance to high priced goods, and the circulation of goods is slow. The demand side has poor support for spot prices.

The PC market in July saw a halt in decline and consolidation. The upstream bisphenol A market is still acceptable, and the cost support of PC is strong. The load of domestic polymerization plants has been reduced narrowly, and the changes in supply side factors are limited. At present, PC prices are still in the low range of the year, and the market has hit the bottom, forming a bottoming force. At the end of the month, spot prices rebounded slightly. Considering the high inventory pressure on PC society in early August and the difficult supply-demand imbalance in the market, it is expected that the PC market will continue to operate at a low level in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

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