Bisphenol A (BPA) prices in the Asia-Pacific region saw a slight increase after the Lunar New Year holiday, driven by a modest rise in feedstock phenol and acetone costs. However, overall demand remained weak from key downstream sectors such as epoxy resin and polycarbonate (PC), keeping market sentiment subdued. The temporary boost in feedstock prices did little to offset the long-standing oversupply in the BPA market, as production levels remained high, and manufacturers struggled with excessive inventories.

China, the largest BPA producer, continued to grapple with oversupply concerns. The industry's total BPA production capacity expanded to approximately 6.01 million tons per year, accounting for 50% of global BPA output. In 2024 alone, an additional 1.2 million tons per year was added, further intensifying competition among domestic producers. With industry-wide operating rates dropping to 64.4%, supply pressure persisted despite the brief post-holiday uptick in trading. Several new plants, including those operated by Heilongjiang Longjiang Chemical and Qingdao Haiwan Chemical, came online in late 2024, exacerbating market saturation.

Downstream demand failed to recover significantly during the period. The epoxy resin sector, a major consumer of BPA, faced sluggish buying activity, with international shipments slowing due to trade restrictions. In China, epoxy resin production utilization dropped to 32.63% during the Lunar New Year period, reflecting weak demand and limited spot market transactions. The polycarbonate (PC) industry also remained under pressure, with manufacturers struggling to clear high inventories.

South Korea’s BPA market mirrored China’s trends, with weak demand from epoxy resins and polycarbonate keeping trading volumes low. Market participants adopted cautious procurement strategies, prioritizing short-term purchases instead of bulk buying. Additionally, South Korean petrochemical producers, including LG Chem and Lotte Chemical, continued to report profitability challenges due to oversupply in Northeast Asia and China’s sluggish economic recovery.

The European Union’s proposed anti-dumping duties on epoxy resin imports from China, Taiwan, and Thailand could significantly impact the Asian Bisphenol A (BPA) market. Key companies under scrutiny include Jiangsu Sanmu Group, Sinochem Group, Changchun Chemical (Jiangsu), and Aditya Birla Chemicals (Thailand), facing duties up to 40.8%. With reduced epoxy resin exports to Europe, BPA consumption in China, South Korea, and Taiwan may decline further, exacerbating oversupply issues.

Looking ahead, BPA prices in APAC are likely to face renewed downward pressure as supply continues to outpace demand.  New BPA projects set to come online in 2025, adding 720,000 tons/year of capacity, will further intensify competition, exacerbating oversupply and making price recovery difficult amid excess market supply.