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Updated to Q2 2020
Supply was tight for the Asia spot BPA market due to some plant turnarounds taking place around the same time. As a result, some producers were unable to fully fulfill their customers’ orders as they did not have sufficient cargo for shipment. Supply was also snug as end-users began to purchase BPA to replenish inventories due to improved sentiment as the Chinese economy began to recover from the coronavirus outbreak.
Demand for BPA from the downstream epoxy resins sector was lifted due to wind turbine subsidies from the Chinese government. These subsidies, which will only be given out till the end of this year, prompted wind turbine producers to purchase BPA ahead of the manufacturing deadline. However, demand from the PC sector continued to be weak due to the coronavirus, as demand for PC to produce finished goods for export was soft.
BPA supply was largely steady in Q2, with the exception of technical issues at one producer. Supply was kept in check, despite coronavirus-dampened demand, by lower Asian imports and export opportunities to the Middle East and China.
BPA contract demand held up during Q2 relative to spot demand which was more limited, because of coronavirus uncertainty. The derivative epoxy resins and PC markets were adversely impacted by a demand slump in the auto and construction sectors, although certain PC applications were well supported. While demand started to recover at the end of Q2, the recovery was fragile and varied, depending on end-sector. Reduced Asian imports, however, provided some support.
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