SunSirs: The Domestic Bisphenol A Market Rebounded Strongly in July

In July, the domestic bisphenol A market exhibited a trend of stabilizing at low levels early in the month, surging mid-month, and consolidating at high levels towards the end, resulting in a significant upward shift in price levels. Supported by the dual factors of rising costs and tight spot supplies, the market reversed its prolonged period of weakness to stage a strong interim rebound; the upward momentum slowed at month-end as the market entered a phase of price stabilization and consolidation.

In July, the spot price of bisphenol A (BPA) experienced a significant, stepped increase, following a clear upward trajectory. At the beginning of the month, the average market price stood at a low of 8,440 RMB/ton, with sluggish trading and prices under pressure. Market conditions strengthened mid-month as prices climbed steadily, rising by more than 10% over a span of ten-plus days. By the end of the month, the average market price reached 9,500 RMB/ton, marking a cumulative monthly increase of 1,000 yuan. Regionally, the East China market drove the national price trend, with North China and South China following suit; regional price differentials remained stable, reflecting strong market interconnectedness.

In July, the overall domestic supply of bisphenol A (BPA) was tight, with the industry operating at low capacity utilization rates. Major production units—such as those operated by Chang Chun Chemical—ran at reduced loads to prioritize long-term contract commitments, resulting in a scarcity of spot market availability. Meanwhile, periodic maintenance at facilities owned by companies like Guangxi Huayi and Shandong Fuyu further curtailed spot supplies. Manufacturers faced minimal inventory pressure and showed a strong determination to maintain or raise prices, providing fundamental support for the upward market trend; the tight spot supply situation persisted through the end of the month.

Downstream epoxy resin and polycarbonate sectors have maintained essential procurement, providing a baseline level of market activity. However, the recovery of end-user demand remains sluggish; downstream enterprises face cost pressures and show little inclination to chase rising prices, preferring instead to purchase on an as-needed basis and maintain low inventory levels rather than engaging in bulk restocking. Sluggish follow-through on transactions at high price points has limited further upside potential, resulting in the market consolidating at a high level as the month draws to a close.

The core drivers of the Bisphenol A market in July were cost and supply factors that supported price increases, counterbalanced by weak demand that capped the extent of the rise; the market fully shook off its previous slump as prices rebounded sharply, shifting industry sentiment from bearish to bullish, before entering a phase of high-level fluctuation and consolidation by month's end.

In the short term, supported by raw material costs and persistent tightness in spot supply—coupled with manufacturers' strong determination to maintain price levels—the market is likely to consolidate at a high range with a slight upward bias. However, given the lack of a significant rebound in downstream demand and sluggish trading activity, the market lacks the momentum for a substantial rally and is expected to fluctuate within a narrow range. Moving forward, key factors to monitor include fluctuations in raw material prices, changes in operating rates at major production facilities, and the pace of recovery in end-user demand.

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