China’s bisphenol A (BPA) imports will likely stay weak in the first half of June amid heavy losses in the spot domestic market due to weak downstream demand.

In the week ended 28 May, spot BPA prices were assessed at $3,100/tonne CFR (cost and freight) China, down by $100/tonne or about 3% from the previous week, according to ICIS data.

In the domestic market, the price decline was more pronounced, with east China prices slumping by yuan (CNY) 4,550/tonne ($714/tonne) or about 18% over the same period to CNY20,750/tonne EXWH (ex-warehouse).

It is difficult for downstream demand to be able to support current BPA prices as downstream sectors are facing a slowdown in demand themselves, market players said.

Epoxy resins spot domestic prices fell in the week ended 25 May, as some end-users, especially in the paints industry, did not procure spot cargoes and held out for June contract negotiations.

Polycarbonate (PC) import markets, prices in China were stable to soft in the week ended 26 May.

“The PC market, just like the BPA market, is not likely to see demand pick up any time soon,” a market participant said.

“While [PC] prices have gone down recently, they are still relatively high [compared with historical pricing trends], and end-users will not be able to keep accepting these levels for long, especially if the demand for their own finished goods is affected by the coronavirus pandemic,” he said. A potential source of support for the Asian PC market would be the gradual recovery of economies in Europe and the US, said a source at a regional BPA producer.

“China manufactures many goods for export, and the increase in demand from other economies is likely to support the Chinese PC market,” he noted.

Support from upstream

Some support could also come from upstream phenol and acetone markets, as domestic supply in China is expected to tighten in the near term amid planned turnarounds. Shanghai CEPSA Chemical’s 400,000 tonne/year unit will undergo 10-15 days of planned maintenance from 30 May, while Jilin Petrochemical’s 150,000 tonne/year unit is due for a scheduled maintenance for two months from end-May.

Some market players, however, are skeptical that tighter supply of feedstocks will keep BPA markets supported.

BPA’s price spread over phenol has been so wide that it is not entirely certain any feedstock price movements will have much of an effect at all on the BPA market. ■

Additional reporting by Luffy Wu and Yoyo Liu