According to the bulk ranking data of SunSirs, the domestic PC market stopped falling and slightly increased in late July, with a relatively small increase in spot prices of various brands. As of July 29th, the mixed benchmark price of SunSirs PC is around 16,450 RMB/ton, and the price has rebounded to the level of July 1st.
In terms of raw materials, it can be seen from the above chart that the price of bisphenol A in China has been strengthening recently. Although upstream phenol and acetone have fluctuated, the support for bisphenol A on the raw material side has limited changes. But the industry load has dropped below 64%, 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 late July, the overall operating rate of PC in China decreased, with the industry average operating rate dropping by 5% to below 71% compared to mid July. There is not much news about future maintenance and resumption of work, and the on-site supply of goods will still remain abundant. Despite the impact of news of Hengli Petrochemical's new material sales, spot prices fell to their lowest point of the year in the early stages, and producers increased their efforts to raise prices and build bottom lines. Factory pricing remained firm, and some auction houses were sold at a premium. The overall market supply side provides stable support for PC prices.
On the demand side: At the end of July, PC consumption continued to be relatively weak 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 experienced a sideways trend after rising in late July. The upstream bisphenol A market is still acceptable, and the cost support of PC is strong. The load of domestic aggregation plants has been reduced, and the changes in supply side factors are limited. At present, PC prices are still in the low range of the year, and last week the market hit bottom and rebounded slightly. Considering that the demand side consumption is difficult to change during the off-season and the market trading is poor, it is expected that the PC market will continue to operate at a low level in the short term.
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