In a surprising turn of events, the global Bisphenol A (BPA) market is experiencing a downward trend in May 2023 as demand weakens and supply remains plentiful. The shift has caught industry analysts off guard, leading to prices declining across major markets worldwide.

During the Labor Day holiday in early May, the overall domestic Bisphenol A market remained stable and consolidated in China. After the holiday, the Bisphenol A market started to operate in a weak and downward trend. Moreover, the feedstocks Phenol and Acetone cost fell this week along with declining OPEC oil prices in the Asian market, which has been reflected in the pricing dynamics of Bisphenol A.

The market participant reported that sluggish market conditions with weaker-than-expected demand had dampened sales of Bisphenol A. Bisphenol A, a key ingredient in the production of Polycarbonate plastics and Epoxy Resins, has long been a cornerstone of various industries. However, recent changes in consumer preferences and growing concerns about its potential health effects have led to a slowdown in demand.

As a result, Chinese manufacturers are left grappling with excess supply and mounting inventories, increasing supply pressure in the domestic market. However, the production rate was reduced as manufacturers were reluctant to build stock due to a softer demand environment and a reduction in the total number of new orders from the downstream market, which propelled them to lower the price offers from their previous week's levels to improve their orders.

Therefore, Bisphenol A prices have remained sluggish in the first two weeks of May 2023, and as of May 12th, Bisphenol A prices in China were assessed at USD 1270/MT on a FOB basis.

Similarly, Bisphenol A prices on a CFR basis fell to USD 1730/MT and USD 1630/MT in the Turkish and US markets, mainly due to the reduced cost of imported cargo arriving on their respective shores. Market participants indicated that lower demand for Bisphenol A in the overseas market led their dealers to supply the product at a lower price. Moreover, demand in their respective markets has remained muted in the face of severe financial circumstances in both regions as the European Central Bank and US Fed Reserve raised interest rates to combat persistently strong inflationary pressures, which impacted consumer purchasing activity.

As per the ChemAnalyst database, "the Bisphenol A market is likely to fall in the coming weeks of May due to weakening demand and stocked-up inventories of the product. The market sentiment is expected to be bearish with an overall lower operating rate in the downstream sector."