Bisphenol A (BPA) prices continued to rise in the second half of December 2024 in the Asia-Pacific (APAC) region, driven by recent increases in the downstream polycarbonate (PC) and epoxy resin markets. This upward trend reflects a recovery from previous lows, signaling a shift in market dynamics.

The BPA market in China has experienced a notable rebound, supported by rising raw material costs. Phenol supplies remained constrained due to delayed port arrivals, maintaining inventory levels at around 6,000 tons. While feedstock costs remained stable, the limited availability of phenol and acetone put upward pressure on production costs. Despite these challenges, traders in China maintained a positive outlook, driving the upward trend in BPA prices.

Also, increased operating rates in the polycarbonate (PC) sector, with companies like Jiaxing Emperor resuming operations, have boosted demand for BPA. However, issues such as high inventory levels and a mismatch between supply and demand continue to create cautious pricing strategies among manufacturers.

The epoxy resin market in China has followed a similar upward trajectory. Strong demand from sectors like wind power has led to a rebound in epoxy resin prices, pushing them to new highs for the year. This resurgence in prices further strengthens the market, as epoxy resin plays a critical role as a raw material in various industrial applications.

Japan has also observed a gradual increase in BPA prices. Improved procurement activities and a recovery in downstream sectors, particularly the PC industry, have supported this trend. Supply disruptions caused by adverse weather conditions at key hubs in Japan and China have further influenced the market, contributing to the price rise.

In India, the BPA market has shown signs of improvement, albeit at a more measured pace. The downstream demand from sectors such as electronics and automotive has provided some support to BPA prices.

Despite these positive developments, the BPA market faces challenges. The European Commission's recent decision to ban BPA in food contact materials, effective December 19, 2024, introduces potential uncertainties. This regulation, aimed at safeguarding public health, may influence Asian BPA demand and trade dynamics, necessitating strategic adjustments by industry stakeholders.

As the year-end nears, downstream factories are increasing procurement to maintain production. The upcoming Chinese New Year at the end of January 2025 is affecting behavior. It is expected to boost imports as the Chinese market will close for the festivities.

According to ChemAnalyst, BPA prices are expected to continue rising in the coming month. Strong demand, especially from the PC and epoxy resin sectors, and the Chinese New Year market closure are likely to drive procurement activities, supporting the upward price trajectory.