During the early weeks of December 2024, Bisphenol S (BPS) prices continued their global decline, driven by lackluster demand from the polycarbonate (PC) and epoxy resin markets. The Asian market, particularly China, remained at the epicenter of this downward trend, characterized by weak consumption, high inventories, and persistent supply-demand mismatches.

In China, major PC producers like Jiaxing Emperor reduced operating rates during maintenance, with average industry utilization dropping from 77% to 75%.  Recently, weekly PC production dipped below 60,000 tons, but ample supply and high stock levels prevented any significant recovery in BPS prices. Downstream industries maintained conservative procurement strategies, limiting purchases to minimal inventory levels as resistance to high-priced goods persisted. Although feedstock phenol prices continued their weak trend, the rise in sulfuric acid prices provided marginal relief, preventing a steeper decline in BPS prices. However, the sluggish circulation of goods and the mismatch between supply and terminal demand kept the market in a bearish state.

In India, the slowdown in the construction sector during H1 FY24-25 further suppressed demand for downstream materials like epoxy resin and polycarbonate, impacting BPS prices. Weaker-than-expected activity in housing and infrastructure projects, coupled with delays in post-election recovery and sluggish infrastructure investment, tempered growth in the sector. Despite these challenges, a strong rabi season supported by favorable monsoons and robust rural cash flows is expected to drive demand for rural housing materials in H2 FY25. Urban housing remains steady, and government capital expenditure is anticipated to gradually revitalize infrastructure activity. However, the oversupply of key construction materials and pricing pressures continues to pose significant challenges to the sector, keeping BPS demand and prices under strain.

In Europe and the USA, BPS prices also faced downward pressure, mirroring the global trend of subdued demand from construction. In Europe, reduced construction activity across the eurozone weakened PC and epoxy resin consumption, further exacerbating the oversupply issue. Seasonal slowdowns and economic uncertainties added to the bearish sentiment in the European market. Meanwhile, in the USA, rising mortgage rates and disruptions caused by hurricanes significantly impacted buyer activity in the housing market. According to the Commerce Department, sales of new single-family homes in October 2024 plummeted by 17.3%, marking the lowest level in nearly two years. This sharp decline in housing activity further dampened demand for downstream materials, including PC and epoxy resin, compounding the challenges for the BPS market.

As per ChemAnalyst, BPS prices are anticipated to decline further in the coming month due to sustained high inventories and subdued demand. The addition of new BPS production capacities has exacerbated the mismatch between supply and demand, and with downstream factories focusing on minimal stocking, BPS prices are expected to fluctuate at low levels in coming month.