Intro: Entering August, China's bisphenol A (BPA) market failed to sustain the cost-support logic, with prices shifting to the downside. At root, weak demand became the dominant factor: downstream procurement cycles lengthened significantly, order volumes failed to pick up, and holders' sentiment turned from steady to cautious, with margin-conceding sales becoming increasingly frequent. The market's center of gravity consequently came under downward pressure. As of August 7, the reference price for BPA in East China stood at 9,400 yuan/ton, down 4.08% from July 31.
On the supply side, maintenance turnarounds continued to emerge intermittently: Gaohua Materials, Nanya Line 2, and Longjiang Chemical remained in shutdown, with Longjiang Chemical's restart postponed to mid-August. Changchun Chemical completed maintenance on its two production lines and restarted them on August 5. As a result, the BPA industry operating rate stood at 61.33%. Although short-term inventory pressure was limited, buying sentiment on the demand side had yet to recover. As the market downturn extended, signs of some operators shifting from a steady stance to a more aggressive one—conceding margins to move goods—became increasingly evident.
Looking at the downstream consumption structure, demand support was clearly insufficient. Although the polycarbonate (PC) industry operated at a high rate of 85%, companies had ample stockpiles from earlier contract procurement, leaving very limited spot purchasing demand. Meanwhile, the epoxy resin industry's operating rate hovered at a low 47%, and with producers already mired in losses, their approach to raw material purchasing became even more cautious, accompanied by strong wait-and-see sentiment. The overall lack of buying appetite downstream was the core factor constraining the BPA market.
Conclusion: Weak demand is the core driving force behind this round of BPA market decline, and the short-term outlook remains far from optimistic. As previously idled units resume production one after another, output is expected to increase, and the social inventory destocking cycle may be drawing to a close. Operating rates in the PC and epoxy resin industries are trending downward, with insufficient terminal orders being transmitted up the supply chain, keeping raw material BPA procurement limited to rigid demand. On the cost side, phenol is running weak and acetone is fluctuating within a narrow range, offering little effective support. More critically, holders—under the dual pressure of prolonged losses and weak demand—hold predominantly bearish views and are prioritizing margin-conceding sales. Therefore, the market is expected to continue its gradual decline in the near term.
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