Polycarbonate (PC) prices kept falling in both Asian and European markets during the last week of March and the early days of April due to weak downstream purchasing, good supplies, and lower raw material costs.

In Asia, PC producers maintained high levels of production during March, and the average operating rate rose significantly. Product availability remained strong, while midstream inventory also continued to grow. Factory prices continued to fall on account of sluggish shipments and poor trading activity, providing inadequate support from the supply side.

Meanwhile, the pressure on the production costs relaxed considerably. Bisphenol A (BPA), one of the most important raw materials for PC, experienced a sharp price decline in March. Although some market players anticipate tightening of BPA supply in the future, soft demand has so far kept any significant price recovery at bay. Upstream intermediates like acetone and phenol also fluctuated after previous declines, injecting uncertainty into cost projections. In total, the poor performance of the raw material market is pulling down the cost support of PC.

On the demand front, PC consumption continued to be weak in Asia during March with downstream processors sustaining only minimal buying levels. Downstream industries like electronics and auto have not displayed any signs of robust recovery. Buyers were apprehensive, and expensive offers found resistance. The PC market experienced sluggish sales and minimal new orders, helping to develop no momentum for any price recovery. While the market is coming to a customary maintenance season, which may help to support some stabilization in supply, the historically high levels of inventory and anemic demand continue to pressure the PC market.

At the same time, in Europe, the PC market trend also remained declining. Sufficient availability, increased imports from Asia, and modest local production caused stiff competition in the continent.

The European automobile and appliance industries, major buyers of PC, exhibited subdued activity in March. Although there was a marginal improvement in the region's manufacturing index, new orders continued to be weak. Industrial production in the UK continued to decline, further depressing sentiment in the overall European manufacturing sector.

In general, the blend of soft demand, high-to-stable production, and decreasing feedstock prices has resulted in ongoing price pressure on PC in Europe and Asia. As per ChemAnalyst, the PC price momentum is expected to continue to follow downward parity in line with the bearish downstream market situation in the Asia and European region.