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Production Cut Effects and Inventory Accumulation Pressure Coexist: Bisphenol A Supply Losses Narrow, Inventory Levels Rise in Jan–Jul 2026

Published on 2026-08-20

From January to July 2026, China's cumulative Bisphenol A (BPA) loss volume reached 338,200 tonnes, down 7.14% year-on-year. During January-July 2026, the BPA industry remained loss-making for most of the period. In the first quarter, affected by earlier losses, some enterprises carried out more load-reduction measures; as profits recovered, only a limited number of units were shut for maintenance. In the second quarter, affected by the US-Iran war, costs rose significantly, and from April to June, the decline in BPA market prices far exceeded that on the cost side, worsening industry losses. This resulted in a relatively high number of production units being shut for maintenance from May to July.

From January to July 2026, long-term idled BPA units included: Luxi Chemical (200,000 tonnes/year), Huizhou Zhongxin Chemical (40,000 tonnes/year), and Pingmei Shenma (130,000 tonnes/year, shut on October 24, 2025, restarted at the end of June 2026).

In terms of new capacity, from January to July 2026, 480,000 tonnes/year of new BPA capacity was added, including Jilin Petrochemical's 240,000 tonnes/year BPA unit and Shandong Ruilin's 240,000 tonnes/year BPA unit.

Table 1 Comparison of BPA unit losses and additions from January to June 2026 (Unit: 10,000 tonnes/year; 10,000 tonnes)

Item Jan-Jul 2025 Jan-Jul 2026 Change YoY Change
Unit loss 36.42 33.82 -2.6 -7.14%
Unit addition 0 75 75 --

Table 2 Incomplete statistics of BPA unit maintenance in China in 2026 (Unit: 10,000 tonnes)

Province Enterprise Capacity Remarks
Guangdong Huizhou Zhongxin (Phase II) 24.0 Shut from Feb 5 to end of March, 54 days
Henan Pingmei Shenma 13.0 Shut on Oct 24, 2025; restarted at end of June 2026
Jiangsu Jiangsu Ruiheng (Phase II) 24.0 Technical revamp of Phase II from Mar 16 to Mar 25, 9 days
Hebei Cangzhou Dahua 20.0 Shut for maintenance from May 7 to May 31
Shanghai Covestro 60.0 Shut on Apr 16 for 40 days; PC shut simultaneously
Shandong Luxi Chemical 20.0 Restarted on Feb 11; later shut at end of March
Shandong Wanhua Chemical 57.6 Temporary shutdown on May 20 for 3-4 days
Dalian Hengli Petrochemical 24.00 Shut from Apr 7 to 12, 2026
Dalian Hengli Petrochemical 24.00 Shut from May 7 to 11, 2026
Shanghai Gaohua Materials 12.0 Shut on May 15; phenol/acetone and BPA restarting on Aug 19
Zhejiang Zhejiang Petrochemical (Phase I) 24.0 Shut on May 15; restarted on Jun 28
Northeast Longjiang Chemical 20.0 Shut for maintenance on Jun 30; restarted on Aug 14
Zhejiang Nan Ya Plastics (Ningbo) 17.0 Single-line operation since Jun 1; restart date to be determined
Zhejiang Nan Ya Plastics (Ningbo) 15.0 Shut from Aug 7 to 12; restarted on Aug 13
Jiangsu Chang Chun Petrochemical 27.0 Lines 1 and 2 both shut for maintenance from Jun 20 to Jul 31
Guangxi Guangxi Huayi 20.0 Shut on Jul 13; restarted on Jul 21
Shandong Zibo Ruilin 24.0 Shut on Jul 31; restart date to be determined
Shandong Wanhua Chemical 57.6 Maintenance from Aug 10 for about 45 days
Jiangsu Nantong Xingchen 15.0 Planned maintenance for 30 days from Aug 25
Shandong Fuyu Chemical 18.0 Planned shutdown on Aug 23 for 30 days
Guangdong Huizhou Zhongxin (Phase II) 24.0 Temporary shutdown on Aug 19; restart time uncertain

According to Chempricehub Information, domestic BPA social inventory from January to July 2026 showed a trend of first declining and then rising.

In January-February, inventory gradually climbed. This was mainly due to the Spring Festival holiday: BPA enterprises maintained normal production, while some downstream epoxy resin and PC industry enterprises shut down for the holiday. In particular, the epoxy resin industry operating rate once fell to about 32% in February, causing demand to contract significantly and driving continuous accumulation of social inventory.

In March, the market entered a destocking phase. Affected by the US-Iran war, prices across the industrial chain rose across the board, BPA losses were somewhat repaired, and enterprises' willingness to operate increased. Meanwhile, downstream epoxy resin fully resumed operations, with operating rates recovering to around 50%; the PC industry operating rate also reached about 87%. The supply-demand gap narrowed, and social inventory fell significantly.

From April to July, inventory rose again. Although the BPA industry saw worsening losses and more maintenance, leading to a downward trend in output, downstream PC also entered its maintenance season, with operating rates falling to around 61%. Epoxy resin demand also remained weak. Overall demand declined more than supply contracted, causing social inventory to accumulate upward.

Comments

0
  • Hannah Berg 2026-08-20 20:05
    The supply-loss narrowing is real, but capacity utilization discipline still lags—480kt new tonnage against 7% YoY losses means inventory build pressure will cap any margin recovery unless downstream demand catches up.
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