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[Industry Reports]：Raw material bisphenol A prices continue to fall, PC costs fall

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The domestic PC market fell sharply last week, with the market up and down 100-650 yuan/ton.

Although BPA continued to fall last week and PC cost support continued to decline, the supply side remains small. Domestic manufacturers mainly operate on price. The ex-factory price is more stable than last week, with some prices rising slightly by 200 yuan/ton. North China factories held steady this week after Friday's factory cut. On Tuesday, the Zhejiang factory auction ended, down 300 yuan/ton from last week. From last Friday to Tuesday, the spot market was weak due to factory price cuts and falling auction prices. The focus of the negotiations is 200-300 yuan/ton. From Wednesday, the high cost support in the internal and external markets was strengthened. In addition, in the near future concentrated production cuts or equipment maintenance expectations, supply continues to shrink, holders wait and see to stabilize the market, but downstream buying follow-up is still insufficient, the actual market volume is scarce, the market ups and downs dilemma.

bisphenol A: This week, the domestic bisphenol A market bottomed out, cost support collapsed, and downstream demand was weak, resulting in a significant decline in spot shorts, down more than 1000 yuan from last weekend. At the beginning of the week, following the relaxed atmosphere of last week, holders reported a decline in prices, but downstream participation in buying was rare, a small amount only needed to enter the market for inquiries, but delivery intentions were low. After the sharp decline in raw material phenol, epoxy resin shipments downstream of related products ECH continued to decline, further suppressing the market atmosphere, the market short atmosphere expanded, some manufacturers and middlemen shipped. In addition, on Monday and Thursday, Huadong Petrochemical bisphenol A auction ended, and the trading volume was slow.

cost forecast: It is expected that international oil prices may still have a small increase next week, and the pace of supply tightening and interest rate hikes may slow down. Recently, the bisphenol A market has been poor both upstream and downstream. With the recent downward movement of the entire industrial chain, the short-term atmosphere of the market still exists. Recently, the market has accelerated its decline, the overall shipment is not smooth, and the inventory of bisphenol A and downstream finished products may gradually increase. Next week, we will pay close attention to the production and sales of major BPA manufacturers and upstream and downstream trends. The bisphenol A market is expected to bottom out.
supply: since late October, the domestic PC industry capacity utilization rate has dropped significantly, November-December installation concentrated production reduction, maintenance, industry continued to inventory, supply reduction actively gradually appeared.
demand: from the recent terminal downstream consumption situation, most industries are underemployed, the PC just need to purchase limited.
To sum up, bisphenol A has continued to decline recently, and the price difference with PC has gradually returned to a reasonable range; since late October, the capacity utilization rate of the domestic PC industry has dropped significantly. From November to December, equipment production was reduced, maintenance was concentrated, and the industry continued to remove inventory operations. The benefits of supply reduction gradually appeared, and the willingness of manufacturers to support prices also increased. However, judging from the recent downstream consumption of terminals, most industries are under-employed, limited procurement of rigid demand for PC, and the overall commodity environment is sluggish. Operators are cautious and difficult to say optimistic. As operations continue, the domestic PC market is expected to experience ups and downs next week, there was a stalemate.

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