Bisphenol A Market Forecasted to Remain Bearish Through November 2024
As we head into the end of November 2024, the Bisphenol A (BPA) market is staying on a bearish course, with prices continuing to decline worldwide. This trend is mainly due to sluggish demand from the polycarbonate (PC) and epoxy resin sectors. China, in particular, is at the heart of this downward movement, with weak consumption patterns, high inventories, and supply-demand imbalances painting a challenging picture for BPA manufacturers and industries that rely on these products.
In China, we’ve seen some reduction in operating rates in the PC market, with big players like Jiaxing Emperor conducting maintenance. Industry-wide, operating rates dropped from 77% to about 75%, and weekly PC production dipped below 60,000 tons. Despite these adjustments, the market remains oversupplied, with lots of inventory holding back any price increases for BPA. Downstream industries are playing it safe, only buying what they need to maintain minimal stock levels, as pricey goods face resistance. While maintenance at some facilities did cut into supply a bit, high inventories in PC and epoxy resin didn’t do much to boost demand. Costs for phenol and acetone, key feedstocks for BPA production, also remained low.
With ample stockpiles and weak downstream demand, suppliers have had to lower prices, but even that hasn’t sparked much activity in the market. The gap between supply and demand persists, as end-users wait to see how things develop.
In Europe and the USA, BPA prices are also heading downward, reflecting soft demand from construction and automotive sectors. Slower construction in the eurozone has reduced consumption of PC and epoxy resin, exacerbating the oversupply issue. Economic uncertainty and seasonal factors are making things worse, driving a bearish mood in the European BPA market.
Adding to the pressure is the increase in production capacity globally, outpacing demand growth. Buyers are hesitant to make big purchases, widening the supply-demand gap even more. The construction industry in Europe, a major user of BPA products, is seeing declines in building activity, further dampening demand for epoxy resin and PC.
Overall, the BPA market is dealing with too much supply and not enough demand. High inventory levels and sluggish downstream activity are keeping prices down. According to ChemAnalyst, BPA prices are expected to keep dropping in the next month due to high inventories and weak demand. The surplus of production capacity and cautious stocking by downstream factories will likely keep BPA prices low in the near future.
