In second half of August 2024, Bisphenol A (BPA) prices in the APAC region, particularly in China and India, maintained a steady trend with no significant improvement. The market struggled with low demand and ample inventories, driven by multiple factors. The downstream epoxy resin and polycarbonate (PC) sectors continued to face weak demand, largely due to persistent challenges in the real estate market, where a significant decline in home sales has signaled ongoing difficulties. This stagnation in BPA prices mirrored the overall sluggish market, with no significant recovery in downstream demand.

The domestic epoxy resin market in China experienced a decline, exacerbated by a lack of actual orders, which further contributed to the bearish sentiment surrounding BPA. Trading activity was minimal, with low order volumes and continued weak interest in BPA. Additionally, cost support from feedstock acetone remained weak, further depressing BPA prices. On the other hand, phenol prices stayed stable due to concentrated maintenance of phenol units in July, which supported industry profits. The anticipated commissioning of Fuyu Chemical’s new 220,000-ton/year phenol unit is expected to ease supply, potentially impacting BPA production costs. Weak coal prices also continued to lower production costs, maintaining a subdued outlook for the BPA market.

India's BPA market mirrored the situation in China, with low demand and sufficient supply dominating the landscape. The ongoing monsoon season further dampened construction activity, a significant driver of epoxy resin and polycarbonate demand, leading to reduced purchasing activity from downstream sectors. Traders faced pressure to offer low prices, as demand remained weak, and the market atmosphere was generally subdued.

Although China's exports grew by 7% in July 2024, this fell short of the expected 10% growth, hindered by ongoing trade tensions and slower economic growth in key markets. Despite a continued rise in export orders, the growth rate slowed, and purchasing activity declined as manufacturers adjusted to reduced new orders. The domestic BPA market suffered from poor trading volumes, with bearish news further dampening sentiment. Downstream procurement remained limited, and traders faced difficulties in moving goods.

New-home sales from China's top 100 real estate companies dropped 19.7% year-on-year in July, with transactions also falling 36.4% from June, highlighting the ongoing struggles in the real estate sector. This downturn has reduced demand for downstream products like epoxy resin and polycarbonate, extensively used in construction, forcing traders to offer BPA at lower prices, as downstream factories purchase only on a need-only basis.

According to ChemAnalyst data, the BPA market in the APAC region is projected to remain stable, with no major price fluctuations expected soon. Ongoing weak demand from the downstream sector, coupled with adequate supply levels, is likely to continue shaping market dynamics.