Bisphenol S (BPS) prices in Asia stayed under strain in mid-March, held back by weak demand from downstream industries, excess stockpiles, and a quiet trading mood. Even with rising feedstock costs, slow sales and limited exports kept prices from moving up.

The BPS market in China continued to face headwinds from subdued demand, especially in downstream polycarbonate (PC) and epoxy resin sectors due to slowdown in the construction industries. Although feedstock phenol and sulfuric acid prices rose slightly—driven by maintenance activity in Zhejiang and tight regional supply—the increased cost did little to support BPS prices due to soft demand fundamentals.  While the epoxy resin sector saw some support from China’s improving auto production and wind power industries, the construction sector continued to lag.

Market participants noted a lack of large-scale restocking from end users, with terminal demand for coatings and resins remaining weak. The purchasing approach was mostly conservative, as buyers avoided building inventory.

China’s exports slowed too, with customs data showing growth dropping to 2.3% in January-February from 10.7% in December. Fewer overseas orders, plus U.S. trade policies and tariffs, dragged BPS confidence lower. Traders noted fewer large deals, and the market felt stuck.

Although manufacturing activity in China showed signs of improvement, it has not yet translated into stronger downstream consumption for BPS. Many buyers stayed cautious, waiting for clearer demand signals post-Ramadan. The combination of high stock levels and slow-moving supply chains has kept BPS circulation limited in the domestic market.

With Ramadan underway, BPS demand from the Middle East and select Asian countries has slowed further. Shortened working hours and reduced trading activity during the fasting month have limited buying momentum, delaying any potential recovery in demand.

In India, BPS prices remained weak amid a steady inflow of Chinese imports and high domestic inventory. Further, declining intra-Asia freight rates helped offset some upward pressure, keeping overall costs manageable for Indian buyers.

BPS demand in the downstream PC and epoxy resin remained moderate due to high construction and infrastructure activities that were sufficient to support steady procurement. India’s 16% YoY surge in office space demand has further boosted consumption in these sectors. The Union Budget 2025’s focus on affordable housing and construction further strengthens market sentiment, driving higher BPS demand in downstream polycarbonate and epoxy resins for building materials. However, demand in the other end use industries like auto declined and reduced the consumption of downstream epoxy resin due to the slowdown in the auto industry. In February 2025, total vehicle sales fell by 7.19% YoY, impacting epoxy resin consumption.

Looking ahead, BPS prices in Asia are expected to remain weak in coming weeks as Ramadan-related trade slowdowns persist. Until regional demand revives post-Ramadan and supply balances tighten, BPS prices are likely to face continued downward pressure in the short term.