According to the bulk ranking data from SunSirs, the domestic PC market in China was generally stable in January, with some spot prices of certain brands experiencing a slight decline. As of January 31st, the mixed benchmark price of SunSirs PC was around 16,483.33 RMB/ton, with a price increase or decrease of -0.20% compared to January 1st.

Cause analysis

In terms of supply: As we enter January, the domestic PC aggregation enterprises have a stable pattern of load absorption, with very limited changes. The average monthly operating rate of the industry has decreased by 1% to 77%. The average weekly production remains at a super high level of over 60,000 tons, and the on-site supply of goods is still abundant. The supply-demand imbalance pattern remains unchanged. The inventory position is relatively high, manufacturers are cautious in pricing, and the market supply side is generally supportive of PC prices.

In terms of raw materials: From the above chart, it can be seen that after the significant recovery of bisphenol A at the end of last year, the bulls gradually ran out in early January, and downstream demand remained stable. After the upward movement of bisphenol A prices was blocked, it entered a consolidation market. However, before the holiday, upstream crude oil prices surged significantly, boosting the confidence of industry players. Overall, the support of raw materials for PC costs is still acceptable.

In terms of demand: The PC consumption pattern has been weak for a long time, and the overall trend continues to be weak at the end of last year. At the end of last year, some export orders were placed in advance in the market, and in January, the overall logic of weak rigid demand procurement returned. The pre holiday stocking efforts were average, and the industry's wait-and-see sentiment was biased. During the month, most downstream factories will be on vacation, and the load on end enterprises will decline. Buyers are resistant to high priced goods. The slow circulation of goods in the market has limited changes, and the demand side has poor support for PC spot prices.

In January, the domestic PC market experienced a narrow range of fluctuations and consolidation, with a clear trend during holidays. The upstream bisphenol A market is currently maintaining consolidation, providing sufficient support for the PC cost side. The load of domestic PC aggregation plants slightly decreased by 1%, while the supply remained loose and unchanged. The high level of inventory in the industry has limited changes, and there has been no substantial improvement in supply pressure. At the beginning of February, the downstream logic revolves around pre holiday inventory preparation, and the return of operators still needs a process. It is expected that PC will continue to focus on organizing and running in the short term.

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