Introduction: The raw material phenol price has been trending downward, continuously weakening cost support. Coupled with the declining operating rates in the downstream PC industry, new orders for epoxy resin remain limited, and demand-side follow-up is sluggish. Against the backdrop of persistently weak buying interest, sellers' sentiment has gradually softened, with offers starting to decline and the market weakening. As of May 14, the reference price for bisphenol A in the East China market stood at 9,800 RMB/ton.

Entering May, the phenol market has been predominantly declining. Constrained by new capacity releases and weak demand, phenol market prices fell sharply. On May 7, phenol prices quickly dropped below 8,000 RMB/ton. Although the phenol market later stabilized and rebounded slightly, prices remain below 8,000 RMB/ton. This has resulted in insufficient cost support for bisphenol A and also affected the purchasing sentiment of bisphenol A downstream buyers.

In May, the capacity utilization rate of the PC industry declined significantly. As of press time, the PC industry operating rate stood at 67.32%, down 7.01 percentage points from April 30. The operating load of Zhejiang Petrochemical's PC unit has been gradually decreasing, while Cangzhou Dahua's PC unit remains under maintenance. During the month, the operating rate of the epoxy resin industry increased slightly, as some units restarted after maintenance and new capacity was brought online. As of May 14, the industry operating rate was up 2.06 percentage points from April 30. However, on a comprehensive basis, the decline in PC operating rates far exceeded the increase in epoxy resin operating rates. Additionally, amid weakening costs, most downstream buyers adopted a wait-and-see attitude toward spot procurement.

In May, the bisphenol A operating rate showed an overall downward trend. Cangzhou Dahua's unit was shut down for approximately 20 days during the month, Hengli Petrochemical's Phase I unit had a brief shutdown, Covestro was in a maintenance period, and some units were in melt state. Consequently, the industry operating rate declined. However, against the backdrop of weak demand, suppliers held ample inventory, and the supply-demand gap gradually widened.

In summary, supply pressure was not significant in the early part of the month, and holders maintained stable offers, while downstream demand was limited to essential needs, resulting in limited movement in negotiated prices. Entering mid-month, as the period of weak buying interest extended, spot supply pressure began to emerge. Sellers became more active in destocking, and market prices started to decline.

Short-term bisphenol A prices are expected to decline narrowly, with the possibility of stabilization. Although bisphenol A industry operating rates are expected to fall, some companies have ample inventory. Meanwhile, operating rates for downstream PC and epoxy resin are still expected to decline, widening the supply-demand gap. The raw material phenol may show some strength, but price fluctuations will be limited, providing weak support for the bisphenol A market. In the short term, weak buying interest is unlikely to improve, and market participants have a high intention to sell, with potential for further concessions. However, as prices decline, some essential demand may emerge, potentially leading to a bottoming-out and stabilization of the market.