The first week of December 2024 exhibited a continued decline in Polycarbonate prices across the USA and Asia, driven by subdued demand and lower costs for the key raw material, bisphenol A. Market fundamentals in both regions point to a persistent imbalance between supply and demand, with little support for Polycarbonate price stabilization.

In the USA, inventory buildup and weak downstream demand are significant challenges. Even with an expected resumption of operations in some facilities, supply-side adjustments have failed to provide meaningful support to prices. Bisphenol A prices remained flat, with a stalemate between long and short positions. On the demand side, the automotive sector, a major end-user of Polycarbonate, remains a mixed picture. While US auto sales in November showed an improvement, the gains are largely attributed to the low inventories and promotional activities rather than organic demand growth. Furthermore, despite the recent increase in automotive production volumes, the impact on Polycarbonate demand remains limited in the US market.

In Asia, particularly China, Polycarbonate supply has been impacted by reduced operating rates. The average industry operating rate dropped in early November to approximately 75% due to maintenance shutdowns by major producers like Cangzhou Dahua and Jiaxing Teijin. Weekly Polycarbonate production has fallen. However, despite reduced output, on-site supply remains abundant, creating a supply-demand mismatch that continues to exert downward pressure on prices. High inventory levels have further constrained manufacturers, preventing price increases and leading to low ex-factory pricing in the Polycarbonate market. Bisphenol A prices in Asia continued their downward trajectory from the start of November 2024, stabilizing at low levels by mid-month. Maintenance activities at certain production facilities and delays in upstream phenol cargo arrivals provided temporary support, but overall market sentiment remained stagnant. Additionally, the slow pace of downstream procurement, coupled with cautious buyer sentiment, has exacerbated the lack of momentum in the Polycarbonate market. High inventories have led merchants to offer price reductions to stimulate orders, but these efforts have not yielded substantial results in the PC market.

With supply pressures, subdued demand, and minimal raw material cost support, Polycarbonate prices in both the USA and Asia have reached new lows for 2024 at the end of November 2024. As per ChemAnalyst, the continued weakness in the Polycarbonate market in the coming weeks, as the profound supply-demand imbalance shows no signs of easing. High inventories and resistance to higher prices will likely keep the Polycarbonate market in a state of stagnation, even as some upstream facilities resume operations. Market players remain cautious, with limited optimism for a near-term recovery in either region.