Price trend

According to the bulk list data of Business Society, the domestic PC market has been weak and declining this week, with spot prices of various brands continuing to decline. As of May 26th, the reference quotation for the PC sample enterprises of Business Society was around 15333.33 yuan/ton, with a decrease of -1.60% compared to the beginning of the month.

Cause analysis

In terms of raw materials: From the above figure, it can be seen that the recent market for bisphenol A has continued to decline. The raw material phenol finishing, acetone decline amplification, due to insufficient support from the cost side. Downstream product demand is weak, and terminal digestion of contracts and inventory is the main factor, which to some extent exacerbates the market wait-and-see atmosphere. The overall performance of the industrial chain is lackluster, with intermediate traders following the market and offering, and it is expected that the market may continue to decline in the near future.

In terms of supply: The overall operating rate of domestic PC has been adjusted and operated in the range of around 71% this week, and the industry has not yet shaken off its high load position in the past three years. There is ample supply on the market, with factory prices falling below normal levels, and multiple brands experiencing upside down situations, resulting in weak support for spot goods.

In terms of demand: Currently, downstream PC companies just need to maintain production and have a heavy wait-and-see mentality. The auction situation has weakened, and transaction prices have generally decreased. At present, the starting position of terminal enterprises is not high, there are not many actual stocking operations, and there is no volume of on-site trading. Traders have a poor mentality, their prices have declined, and the difficulty of arbitrage has increased.

Future Market Forecast

The PC market is weak this week. The upstream bisphenol A market continues to decline, providing poor support for PC costs. The high load of domestic polymerization plants is stagnant, and the follow-up and improvement on the demand side are limited, while the pressure on the supply side is maintained. There is currently no sign of the PC market breaking out of the supply-demand contradiction, and it is expected that the market may continue to operate weakly.