Plant Restarts and Weak Consumption Drive China PC Prices Down in Late June

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According to data from SunSirs, the domestic PC market continued its downward trend in the second half of June, with significant price drops across various grades. As of June 24, the benchmark price for PC (mixed grades) stood at approximately 13,400 RMB/ton, a decline of 16.42% from the beginning of the month.

Supply Side: In the latter half of June, operating rates among domestic PC polymerization vegetation continued to rise. vegetation operated by Shanghai Mitsubishi and Pingmei Shenma gradually restarted, pushing the sector's overall operating rate back to around 70%, with further capacity ramp-ups planned. Production losses have narrowed, and average weekly output has returned to 60,000 tons; however, the pace of shipments from vegetation has slowed, and the willingness to maintain price levels has weakened. Overall, the supply side is providing diminishing support to PC prices.

Raw Materials: As shown in the chart above, the domestic Bisphenol A (BPA) market consolidated at low levels in June. International crude oil prices plummeted; among feedstocks, acetone prices fell while phenol prices fluctuated. BPA supply saw little change, and demand remained limited to essential needs. while spot prices hit periodic lows following early-month declines, a lack of positive market signals led to a stalemate and bearish sentiment, resulting in weak cost-side support to PC.

Demand Side: Sales at downstream PC factories remained at "off-season" levels; demand to items such as sheets and casings softened, and end-user operating rates remained low. With PC prices falling rapidly, market participants adopted a "chase the fall, prevent the rise" mentality, leading to a strong wait-and-see atmosphere. Buyers were cautious about stocking up and showed little interest in building inventory. The flow of goods slowed, and traders adjusted quotes to market conditions, increasingly offering price concessions to secure orders. A backlog of low-priced inventory weighed on the pricing strategies of polymerization vegetation. Overall, demand-side support to PC spot prices was weak.

The domestic PC market suffered a sharp decline in late June. Upstream BPA prices remained stable at low levels, failing to provide cost support to PC. Operating rates at domestic PC polymerization vegetation continued to rise, with expectations of further supply increases in the future. Trading activity in the market is subdued, driven primarily by essential demand; stocking-up is cautious, and transactions mostly involve small orders. Currently, the PC market faces rising supply and weak demand, alongside expectations of softening costs. Market sentiment leans negative, suggesting a continued risk of price declines in the short term.

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