Polycarbonate Market Lifts up ME & Asia, While Gaining Stability in the West

The Polycarbonate market in the United States has exhibited a remarkable stability in pricing in the first week of January 2024, a phenomenon largely attributed to the delicate balance between demand and supply. This consistent trend can be directly linked to the steady pricing of upstream crude oil, which has subsequently acted as a stabilizing force on the overall production costs of Polycarbonate. Despite this stability, recent data from the manufacturing sector reveals a contraction in output and a notable downturn in new orders in the preceding month. This downturn is indicative of broader weaknesses in both domestic and external demand conditions, prompting companies to make adjustments in their input buying activities.

In the German market, the price of Polycarbonate demonstrated stability in the initial week of January 2024. This stability can be attributed to the sharp downturn in the construction industry, exacerbated by the impact of rising interest rates. The construction sector has been grappling with challenges, marked by a substantial drop in new orders among Polycarbonate manufacturers in December 2023. Simultaneously, manufacturing activities increased during this week, though the sector continued to contract, witnessing output and job losses for the seventh consecutive month. Some sub-indices, however, showed signs of improvement, with reductions in new orders and purchasing activity easing. Business confidence reached an eight-month high, indicating cautious optimism despite the ongoing challenges. Euro area goods producers continued to reduce stocks due to weak demand, while suppliers' delivery times improved, suggesting an increase in availability.

In the opening week of January 2024, the Polycarbonate market experienced a notable uptick in prices in the Saudi Arabia. This surge was attributed to a resurgence in trader restocking activities, with fresh materials entering the market. The concurrent increase in the price of feedstock Bisphenol A played a significant role in bolstering the overall Polycarbonate market. The positive correlation between Bisphenol A and Polycarbonate prices underscores the interdependence of raw material costs on the final product. Moreover, the international market witnessed a surge in demand for Polycarbonate, further amplifying the bullish trend within the country. The combination of increased restocking, elevated feedstock prices, and robust international demand set a positive trajectory for Polycarbonate prices in the first week of January 2024.

In China, during the inaugural week of January 2024, the Polycarbonate market witnessed a positive turn in pricing trends with an approximate 0.8% increase. This notable improvement was attributed to an upswing in demand from the downstream automotive industry. Particularly noteworthy was the performance of the Chinese company BYD, which surpassed Elon Musk's Tesla in electric vehicle sales during the last quarter of 2023, intensifying their battle for supremacy in the sector. The unexpectedly robust end-of-year performance surpassed market expectations, with sales experiencing a remarkable 20% surge compared to the same period in 2022. This surge in demand not only buoyed the Polycarbonate market but also reflected a broader momentum in the automotive industry, signalling a positive start to the year 2024. The Polycarbonate market in China is poised for further growth, propelled by the thriving automotive sector and increasing consumer preferences for electric vehicles.