SunSirs: Market Trading has not Improved, China PC Market Fluctuates weakly in mid November

According to the bulk ranking data from SunSirs, the domestic PC market fluctuated at a low level in mid November, with most spot prices of various brands stabilizing slightly and falling slightly. As of November 19th, the mixed benchmark price of Business Society PC is around 15,883.33 RMB/ton, with a price increase or decrease of -0.73% compared to early November.

On the supply side: Recently, the overall operating rate of PC in China has slightly decreased, and companies such as Jiaxing Emperor have gradually entered maintenance. The industry average operating rate has narrowly fallen from 79.3% in the first half of the year to around 77%. The weekly production of PC remains at a super high level of over 60,000 tons in the medium and long term, with abundant on-site supply and a profound supply-demand mismatch pattern. The pattern of loose supply in the middle of the month has not changed, and it is difficult to see good news on the supply side. Manufacturers are unable to raise prices, and the factory pricing is stuck at a low level. At the same time, there is a mutual occurrence of future maintenance and resumption of work, and there is a drag on PC prices on the market supply side.

In terms of raw materials, it can be seen from the above chart that the domestic price of bisphenol A remained generally flat in mid November. Although the supply has shrunk due to the maintenance of some enterprises within the range, the main downstream PC and epoxy resin stocks are average. In addition, the direct raw materials phenol and acetone may have weak market conditions or consolidation, which weakens the cost support for bisphenol A. Overall, bisphenol A has not shown any improvement in its support for PC cost.

In terms of demand, the PC consumption pattern has not shown any improvement in the medium to long term, and the overall trend continues from the previous weak trend, with the logic of weak and rigid demand in the market. Industry players tend to have a wait-and-see attitude, while downstream factories purchase goods to maintain production. Buyers have strong resistance to high priced goods, and the circulation of goods on site is slow. The overall inventory in China is high, and it is difficult for the demand side to form strong support for spot prices.

The PC market in mid November was generally weak in consolidation. The upstream bisphenol A market remained low and sideways, with overall weak support for PC costs. The load of domestic polymerization plants has slightly decreased within ten days, and the restart and maintenance in the short term are basically the same, with high supply. The downstream weak rigid demand stocking pattern has not changed, making it difficult to drive market trends. Although PC prices have fallen below the annual low, the profound mismatch between supply and demand cannot be alleviated in the short term. Therefore, SunSirs predicts that the PC market may still show signs of fatigue in the future.

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