November 2024: Ample Inventory and Sluggish Demand Weigh on Asian BPA Prices

Bisphenol A (BPA) prices in the Asia-Pacific (APAC) region remained under pressure in early November 2024 due to weak demand from downstream sectors, particularly polycarbonate (PC) and epoxy resin. Cost support from feedstock materials like phenol and acetone remained limited, compounding market challenges. In China, despite a brief rise in phenol prices in October, prices fell significantly post-Golden Week, leaving little support for BPA. Acetone prices similarly declined throughout October, contributing to the pressure on BPA as demand lagged.

In the first nine months of 2024, China’s chemical raw materials and products manufacturing industry showed signs of strain. According to recent data from the National Bureau of Statistics, total profits for industrial enterprises above a designated size reached 5,228.16 billion yuan, marking a year-on-year decrease of 3.5%. Specifically, the chemical manufacturing sector reported profits of 301.71 billion yuan, a 4% decline compared to the previous year. These figures underscore a challenging business climate for BPA producers, as end-use sectors like PC and epoxy resins report sluggish demand, contributing to high inventories.

BPA supply in China remains abundant, with production continuing to outpace demand. Operating rates in the domestic PC sector fluctuated between 79-81% in October, but the demand for PC and epoxy resin remained tepid, creating a persistent supply-demand imbalance. As maintenance at some phenol-ketone facilities is anticipated in the coming weeks, a minor dip in supply could occur; however, BPA availability remains high. Even after the disruptions caused by typhoons in September, which led to delays in port activities, October saw an increase in exports. Yet, this temporary surge failed to lift prices meaningfully as the market faced high inventory levels and sluggish demand.

Looking forward, demand from end-users in key sectors like construction, where infrastructure activity and real estate development have slowed, appears bleak. According to recent data, top real estate firms in China saw a year-on-year sales increase of 7.1% in October, yet overall sales from January to October were down by 32.7%, with investment in land acquisitions minimal as companies remain cautious in expanding their portfolios. This slowdown directly impacts the construction industry’s demand for materials like PC and epoxy resins, indirectly weighing down BPA demand.

In Japan, BPA prices have similarly stabilized after a 2.2% decline in October, with the market facing similar oversupply challenges. The high operating rates across APAC suggest that production levels continue to exceed demand, particularly as weak downstream profitability constrains PC and epoxy resin purchases. The conservative procurement practices in Japan and broader APAC also indicate that end-users remain hesitant to restock amid economic uncertainties.

India’s BPA market also reflects subdued demand. Construction and infrastructure players, including UltraTech Cement and Larsen & Toubro, report weakened demand, constraining BPA demand for PC and epoxy applications. With ongoing economic concerns and tepid end-user demand, India’s BPA market mirrors the broader APAC trend of oversupply and limited consumption.

With the arrival of winter, seasonal slowdowns are expected to further limit demand across APAC, leaving BPA prices vulnerable to downward pressure due to the persistent supply-demand mismatch. As key sectors continue to struggle, APAC’s BPA market faces significant hurdles in the near term.