For the Quarter Ending September 2024
North America
Throughout Q3 2024, the Bisphenol A pricing scenario in North America witnessed a notable decline, with the USA experiencing the most significant price changes. Several factors contributed to this downward trend. Oversupply in the market, driven by abundant global production and sluggish demand from downstream sectors like polycarbonate and epoxy resins, exerted immense pressure on prices. Weak economic conditions and a seasonal slowdown further exacerbated the situation. The bearish market sentiment was also influenced by low cost imports, reduced cost support from key feedstocks, and declining crude values, impacting overall pricing dynamics.
In comparison to the same quarter last year, prices saw a substantial decrease of 10%, reflecting the persistent downward trajectory. Furthermore, there was a 4.9% decrease from the previous quarter in 2024. The second half of the quarter witnessed a 4% decrease compared to the first half, underlining the continued price deterioration trend.
The latest quarter-ending price for Bisphenol A in the USA stood at USD 1484/MT, CFR Texas, signifying the prevailing negative pricing environment characterized by instability and downward pressure on market prices.
APAC
Throughout the Q3 2024, the Bisphenol A (BPA) market in the APAC region experienced a notable decline in prices. Several key factors contributed to this downward trend. Weak demand from downstream sectors, such as epoxy resin and polycarbonate, played a significant role in the pricing dynamics. Additionally, limited cost support from feedstocks like acetone and phenol further weakened market confidence. The market sentiment remained negative due to sluggish global demand, new capacity additions, and declining crude values during the quarter. In Japan, the market saw the most significant price changes, with prices decreasing by 14.1% compared to the same quarter last year. The quarter recorded a 7.6% decrease from the previous quarter in 2024. The first half of the quarter also saw a decrease in prices compared to the second half. By the end of Q3, BPA prices in Japan settled at USD 1195/MT FOB Osaka, reflecting the overall lack of momentum and insufficient demand to support a market rebound.
Europe
Throughout the third quarter of 2024, the Bisphenol A (BPA) market in Europe witnessed a significant decline in prices, primarily influenced by a multitude of factors. Weak demand from downstream sectors like polycarbonate and epoxy resin, coupled with low import prices from exporting nations, created an imbalance between supply and demand. Additionally, limited cost support from feedstocks such as acetone and phenol further weighed on market prices. The oversupply situation was aggravated by several BPA production units resuming operations in the APAC region, exacerbating the downward price trend. Specifically focusing on the Netherlands, the region experienced the maximum price changes during the quarter. The overall trend in pricing reflected a consistent decrease, with a 12.1% decline compared to the same quarter last year. Furthermore, there was a 5.5% decrease from the previous quarter in 2024 and also saw a decrease in prices between the first and second half of the quarter. The quarter-ending price for BPA in the Netherlands stood at USD 1590/MT FD-Rotterdam, highlighting the persistent negative sentiment in the pricing environment.
MEA
In Q3 2024, the Bisphenol A market in the MEA region experienced decreasing prices, reflecting a -7% change from the same quarter last year. Various factors influenced this trend, including a significant oversupply of BPA in the market, sluggish demand in downstream sectors, and weakening support from feedstocks like acetone and phenol. These conditions led to a bearish sentiment, with prices declining by 3.9% from the previous quarter in 2024. Saudi Arabia witnessed the most substantial price changes during this period, with a notable -4% shift in prices between the first and second half of the quarter. The market in Saudi Arabia exhibited a consistent downward trend, driven by subdued demand, high inventory levels, and limited market activity. Despite robust economic activity in the construction sector, BPA prices faced downward pressure due to escalating production costs and reduced purchasing activities. In conclusion, the quarter ended with Bisphenol A prices at USD 1389/MT CFR Jeddah in Saudi Arabia, reflecting the prevailing negative pricing environment characterized by declining prices and a challenging market landscape.
For the Quarter Ending June 2024
North America
The North American region experienced a mixed pricing environment for bisphenol A (BPA) in Q2 2024. In April, BPA prices in the USA declined slightly by 2.2% due to ample supplies and low demand in downstream epoxy resin and polycarbonate (PC) market.
However, May and June saw a robust recovery, with prices surging by 11.6% and 6.4%, respectively. This positive trend was driven by limited availability of feedstock phenol and acetone, alongside increased crude oil prices due to geopolitical tensions. Plant shutdowns in exporting Asian nations further exacerbated scarcity, pushing prices higher.
Demand for BPA in the USA domestic market improved, fueled by a strong recovery in the housing sector. Additionally, container shortages and delays in empty container returns intensified the problem, disrupting global supply chains and affecting BPA transportation and pricing. By the end of Q2 2024, the price for Bisphenol A in the USA stood at USD 1556/MT CFR Texas, reflecting a positive pricing environment overall compared to Q1 2024, driven by increased demand.
APAC
The APAC region witnessed a mixed pricing environment for bisphenol A (BPA) in Q2 2024. In April 2024, BPA prices declined by 6.8% due to oversupply and low demand in downstream epoxy resin and polycarbonate (PC) market. However, May and June saw a robust recovery, with prices surging by 13.5% and 6.7%, respectively. This positive trend was driven by limited availability of feedstock phenol and acetone, alongside increased crude oil prices due to geopolitical tensions. Plant shutdowns in China and other exporting nations further exacerbated scarcity, pushing prices higher. Demand for BPA in China's domestic market improved, fueled by a strong recovery in the housing sector. Additionally, China’s exports grew at their fastest pace in over a year in May 2024, rising 7.6% year-on-year to $302.35 billion, which helped sustain healthy BPA prices. By the end of Q2 2024, the price for Bisphenol A in China stood at USD 1356/MT FOB Qingdao reflecting a positive pricing environment overall compared to Q1 2024, driven by increased demand.
Europe
The European region experienced a mixed pricing environment for bisphenol A (BPA) in Q2 2024. In April and May, BPA prices in the Netherlands declined significantly by 6.5% and 1.8%, respectively, driven by decreased demand in downstream polycarbonate and epoxy resin industries. This decline was particularly due to the slowdown in construction activity in Europe. The Eurozone construction sector continued to decline at the start of Q2 2024, with new orders falling sharply, leading to further reductions in construction activity, as well as a retrenchment of employment and purchasing. However, June saw a recovery, with prices surging by 2.4%. This positive trend was driven by limited availability of feedstock phenol and acetone, alongside increased crude oil prices due to geopolitical tensions. Plant shutdowns in exporting Asian nations further exacerbated scarcity, pushing prices higher. Additionally, container shortages and delays in empty container returns intensified the problem, disrupting global supply chains and affecting BPA transportation and pricing. By the end of Q2 2024, the price for Bisphenol A in the Netherlands stood at USD 1682/MT FD-Rotterdam, reflecting a negative pricing environment overall compared to Q1 2024.
MEA
The MEA region experienced a mixed pricing environment for bisphenol A (BPA) in Q2 2024. In April, BPA prices in the Saudi Arabia declined by 4% due to oversupply and low demand in downstream epoxy resin and polycarbonate (PC) industries. However, May and June saw a robust recovery, with prices surging by 12.7% and 6.8%, respectively. This positive trend was driven by the limited availability of feedstock phenol and acetone, alongside increased crude oil prices due to geopolitical tensions. Plant shutdowns in exporting Asian nations further exacerbated scarcity, pushing prices higher. Demand for BPA in the Saudi Arabian market improved, fueled by strong demand in the construction industries. Supply chain disruptions, including maintenance shutdowns at major global plants and exacerbated logistical strains due to elevated port congestion, further strained market availability. By the end of Q2 2024, the price for Bisphenol A in Saudi Arabia stood at USD 1445/MT CFR Jeddah, reflecting a positive pricing environment overall compared to Q1 2024, driven by increased demand.
For the Quarter Ending March 2024
North America
The first quarter of 2024 was characterized by decreasing prices for Bisphenol A (BPA) in the North America region. This decline was attributed to several significant factors that influenced the market. Firstly, there was a reflection from Asian exporting nations like China and Japan, along with lower import prices from the same exporting region due to a slowdown from these exporting nations. Further, the surplus put downward pressure on prices. This decrease in demand in the exporting nations' downstream epoxy resins and polycarbonate industries, due to a slowdown in the construction sector, further contributed to the downward trend in prices.
In the USA, the decline in prices was particularly significant. The overall trend in the USA market was negative, with prices steadily decreasing throughout the quarter due to low import prices from the Asian exporting nations. This decline could be attributed to the same factors mentioned earlier, such as decreased demand and surplus inventory. While there was some recovery in February due to supply disruptions caused by Lunar New Year in Asia and incidents in the Red Sea.
Compared to the same quarter last year, prices for BPA in the USA decreased by 26%. Additionally, prices decreased by 22% compared to the previous quarter in 2024. The quarter-ending price for BPA in the USA stood at USD 1406/MT, CFR Texas, reflecting the overall decreasing sentiment in the pricing environment for BPA in the North America region.
APAC
In Q1 2024, the Bisphenol A market in the APAC region witnessed a significant decrease in prices. Several factors contributed to this downward trend, including subdued demand from downstream epoxy resins and polycarbonate industries due to sluggish construction activity, and reduced procurement activities. The market experienced a bearish sentiment, with low buying enthusiasm and elevated inventory levels. Additionally, the petrochemical industry faced challenges such as low demand, diminished profitability, and overcapacity. The decrease in housing starts and the slowdown in the construction sector further impacted the demand for Bisphenol A.
Japan experienced the maximum price changes in the region. The overall trends in the market were influenced by seasonality factors, such as the Lunar New Year holidays and the slowdown in construction activities during the winter season. The price of Bisphenol A in Q1 2024 decreased by 30% compared to the same quarter last year. The price also recorded a decrease of 12% from the previous quarter in 2024. Moreover, there was a 7% decline in prices between the first and second half of the quarter. The quarter-ending price for Bisphenol A in Japan stood at USD 1144/MT FOB Osaka.
In summary, the pricing environment for Bisphenol A in the APAC region during Q1 2024 was pessimistic, with prices experiencing a significant decrease. Factors such as subdued demand, sluggish construction activity, and reduced procurement activities contributed to the downward trend in prices. Japan witnessed the maximum price changes in the region, influenced by seasonality factors and the slowdown in construction activities.
Europe
The pricing of Bisphenol A in the European region during Q1 2024 has experienced a notable increase, with some fluctuations observed in the Netherlands. Despite challenges such as low demand from downstream industries and stable feedstock prices, the market remained bullish due to geopolitical tensions in the Middle East.
In the Netherlands, the Bisphenol A market maintained a stable downward trend in January, supported by consistent cost dynamics in feedstocks like phenol and acetone. However, this stability was overshadowed by challenges in the construction sector, leading to subdued demand from downstream industries and signaling sluggish performance across European countries. The eurozone construction sector recorded a significant drop, indicating a sharp decline in construction activity. Despite moderate material availability in the domestic market, downstream construction industries experienced slow demand, resulting in a surplus across most consumer markets. February witnessed a surge in Bisphenol A prices in the Netherlands, driven by high demand from downstream epoxy and polycarbonate industries, along with delays in material availability. The European market saw heightened activity, especially in the Netherlands, with increased inquiries and steady demand from the construction and automobile sectors. March continued the upward trajectory of Bisphenol A prices in the Netherlands, fueled by consistent demand from downstream industries and elevated import prices from Asian nations. Despite challenges such as maintenance shutdowns of key Bisphenol A units globally and rising feedstock prices, the market remained bullish. The surge in demand from the construction sector and elevated home prices in the Netherlands emphasized the growing need for Bisphenol A, prompting manufacturers to increase production to meet market demands.
In summary, the pricing environment for Bisphenol A in the Europe region during Q1 2024 was positive, with prices experiencing a significant increased. Factors such as moderate demand, sluggish, supply chain disruption and high import price contributed to the upward trend in prices. The quarter-ending price for BPA in the Netherlands stood at USD 1766/MT, FD-Rotterdam.
MEA
The pricing of Bisphenol A in the MEA region witnessed a mixed sentiments throughout the first quarter of 2024, with some fluctuations evident across the region. Ultimately, the quarter concluded with a BPA price of USD 1250/MT CFR Jeddah in Saudi Arabia.
In January, prices experienced a decline attributed to low import prices from exporting Asian nations and an oversupply situation, particularly notable in Saudi Arabia. This oversupply in Saudi Arabia stemmed from weakened demand for BPA in certain exporting nations, such as those reliant on downstream polycarbonate and epoxy resins. February witnessed a price increase, driven by heightened procurement activities ahead of Ramadan. This increase was further supported by consistent cost dynamics in feedstocks like phenol and acetone, along with steady demand from downstream sectors aligned with the construction industry. By March, a stable trend emerged in Saudi Arabia's domestic market, largely influenced by Ramadan. During this period, countries in the region operate on reduced schedules, and the construction sector experienced stability.
Overall, the first quarter of 2024 in the MEA region saw a fluctuating trajectory for BPA prices. Initially decreasing, followed by an increment, and finally settling into a stable trend, primarily driven by moderate demand within the construction sector.
For the Quarter Ending December 2023
North America
In Q4FY23, Bisphenol A (BPA) prices in the USA exhibited mixed sentiments. After a consistent rise, prices dropped due to sufficient inventories in October and November. The availability of inventories improved, leading to a decline in import prices, especially with the occurrence of Golden Week holidays in China. Freight charges remained stable on Middle Eastern Asian routes, contrasting sharply with declining costs on European routes. Limited queries and steady demand from the downstream epoxy resins industry in October.
In the following, BPA prices decreased in November due to weak cost support from international crude oil prices and oversupply from cheap Asian imports. Winter season slowdown impacted the downstream paints, coatings, and plastic industries, leading to decreased demand and increased supply. The slowdown, coupled with ample inventories, exerted additional downward pressure on prices. The Q3 report from Huntsman highlighted lower sales volumes and reduced average selling prices, mainly attributed to slowing construction activity and reduced demand in various industrial markets.
In December, BPA demand rose, causing higher prices due to transportation challenges from the global shipping crisis. Red Sea attacks resulted in delays, tightening supply-demand balance and causing a price surge. Asia-to-USA rates exceeded, and the construction industry's growth trend in the renovation and maintenance market increased attractiveness to investors, leading to price hikes. As of December, Bisphenol A prices in USA were assessed at USD 1494/MT, CFR Texas.
APAC
In Q4FY23, bisphenol A prices in the Asian market witnessed a decline, influenced by weak support from feedstock phenol and acetone, coupled with subdued downstream demand. Specifically, in the domestic market of Japan, bisphenol A prices experienced a consistent decline throughout the quarter. The overall market conditions were affected by oversupply and low prices in Asia, enhancing the competitiveness of Japanese bisphenol A exports globally. Downstream products, such as epoxy resins and polycarbonates, faced fluctuations and weakened trends in Japan. The market dynamics were further influenced by Mitsui Chemicals' strategic downsizing of its domestic phenols business in response to oversupply issues and Idemitsu Kosan's withdrawal from Bisphenol A production. Oversupply and sluggish demand in the region contributed to the overall decline in Bisphenol A. The cost pressure from feedstock phenol and acetone weakened, while demand from downstream industries, including paints, coatings, and construction, remained low due to limited queries. The ongoing decrease in upstream crude oil and feedstock phenol and acetone, alongside weakened procurement from other end-use industries, played a role in reducing the production cost of bisphenol A in the domestic market. Additionally, the implementation of a new law involving an eight-day shutdown of construction sites every four weeks is anticipated to extend construction times, potentially reducing project numbers and exerting downward pressure on Bisphenol A demand. As of December, Bisphenol A prices in Japan were assessed at USD 1172/MT FOB Osaka.
Europe
In Q4FY23, Prices of bisphenol A observed mixed sentiment in the Europe region. In Q4FY23, the first two months saw a sharp decline in Bisphenol A (BPA) prices due to low crude oil and weak demand from industries like automobiles and construction, which were underperforming. The automotive sector faced a decline in sales month-on-month, while the construction industry experienced low activity due to high-interest rates and economic uncertainties. Excess supply in the Netherlands, coupled with BPA availability from the Far East Asian market and inexpensive imports from China, contributed to a price decrease. The market situation remained bearish, with moderate supply and sufficient inventories meeting demand. Low-cost imports from China and lower prices of upstream benzene and feedstock phenol kept BPA prices low, though acetone prices increased. Demand for BPA continued to be moderate in November, influenced by low demand in end-use industries. In December, BPA demand rose, resulting in higher prices due to transportation challenges from the global shipping crisis. Ongoing Red Sea attacks caused delays, tightening supply-demand balance and causing a price surge. Asia-to-North Europe rates doubled, exceeding $4,000 per 40-foot container. The construction industry's growing trend in the renovation and maintenance market enhanced its attractiveness to investors. In the feedstock market, acetone prices increased, while phenol prices declined. Supply became a concern in December, leading to a rise in BPA prices. Supply chain disruptions from Houthi attacks in the Red Sea and increased demand from the construction industry limited supply, causing a decline in inventory levels and exerting upward pressure on prices. Demand in December ranged from low to moderate, with the construction industry showing increased activity and positive movements in Eurozone Manufacturing data, indicating potential improvement in the industry's downturn. Feedstock prices fluctuated throughout the quarter, with phenol prices increasing in the first month and decreasing in the last two months. As of December, Bisphenol A prices in USA were assessed at USD 1560/MT FD Rotterdam,.
Middle East Asia (MEA)
The fourth quarter of 2023 witnessed fluctuating prices of Bisphenol A in the MEA region. The top three reasons that impacted the market were oversupply of cheaper imports from China, low demand from downstream industries, and limited availability of upstream raw materials. Saudi Arabia experienced the maximum changes in prices as the demand for downstream polycarbonates and epoxy resins increased in the end-use construction industry but remained moderate in other industries, resulting in a stable market situation. However, the recent 32% decline in Saudi Arabia's real estate market and a contraction in housing impacted the downstream construction sector. The price trend of Bisphenol A in Saudi Arabia during the current quarter was calculated to be -30% in comparison to the same period last year. The percentage change in price from the current quarter to the previous quarter was -10%. Additionally, the price percentage comparison of the first and second half of the quarter in Saudi Arabia was -4%. The latest price of Bisphenol A CFR Jeddah in Saudi Arabia in the current quarter was USD 1272/MT. No plant shutdown was reported during this period.
For the Quarter Ending September 2023
North America
During the third quarter, Bisphenol A (BPA) prices in the United States saw a pronounced and consistent upturn, driven by several key factors. Notably, there was a substantial surge in demand from the downstream Epoxy resin sector, acting as a strong catalyst for price growth. The market also benefited from stable cost pressures originating from the upstream sector, alongside escalating prices for imports entering US markets. The US BPA market experienced heightened pricing due to the construction industry's robust performance and a resurgence in the upstream market. This revival was fueled by increased activity in the residential housing sector during the latter part of the preceding quarter. Concurrently, the demand for upstream materials like Acetone and Phenol strengthened in response to the recovery in crude oil prices. Additionally, imports from the Asian market reflected higher price levels, driven by the strengthening market sentiment in Asia and the more favorable profit margins for exporters taking advantage of these dynamics. Demand from downstream sectors, including Epoxy resin and Polycarbonate, surged as the construction industry exhibited strong performance, supported by a thriving housing market. Moreover, the automotive industry was poised for a record-breaking year, further enhancing consumption rates, as both Epoxy resins and Polycarbonate find extensive use in these two sectors. Consequently, the United States witnessed a significant and sustained increase in BPA prices from 1514 per MT CFR Texas to 1648 per MT CFR Texas throughout the third quarter.
APAC
Throughout the third quarter of 2023, the prices of Bisphenol A (BPA) in the APAC region exhibited a consistent upward trend, primarily driven by several key factors. This included a substantial surge in demand from downstream industries, notably robust operating rates at Sinopec Mitsui and elevated crude oil prices. The increased prices of feedstock materials like Acetone and Phenol played a pivotal role in providing significant cost support to the BPA market. Notably, Sinopec Mitsui responded to the rising demand by increasing the operating rates of its 120 KTPA plant in Caojing, following a decline in the previous quarter. This move further contributed to the mounting cost support from upstream Acetone and Phenol, aligning with strengthening demand in the downstream Epoxy resins market during the third quarter, following a lackluster Q2. Procurement activities remained reasonably active, characterized by ample inquiries. As the third quarter progressed, BPA prices regained momentum, driven by firm cost support, an increase in active queries, and subsequent procurement activities. The consistent strengthening of crude oil prices over six consecutive weeks added to the overall cost pressures, particularly on key aromatics, and, consequently, kept feedstock Phenol prices firm. The prices fluctuate from USD 1123 per MT on an FOB basis to USD 1391 per MT on an FOB basis during the timeframe of July to September.
Europe
Throughout the third quarter of 2023, Bisphenol A (BPA) prices in the European region exhibited a consistent upward trajectory, primarily propelled by significant cost support from upstream sources. This surge in cost support was closely tied to the continuous rise in Brent crude oil prices, which persisted throughout the quarter. Concurrently, the demand dynamics for BPA in the European market remained relatively subdued, largely due to the presence of costly imports from the Asian market. This pricing imbalance resulted from shifting market dynamics that favored Asian countries. Notably, BPA prices experienced an improvement in August 2023, driven by a substantial increase in upstream cost support, particularly influenced by the steady rise in Brent crude oil prices during that month. The upstream Benzene market also followed a similar upward trend as crude oil prices strengthened over the past weeks, further exerting pressure and contributing to the price increases of Acetone and Phenol. Moreover, costly imports from the Asian region persisted as market sentiment in Asian countries improved with a recovery in demand dynamics and limited supply availability. The overall BPA market in Europe demonstrated resilience in the face of these factors as prices continued to climb throughout the third quarter of the year. The prices vary between USD 1785 per MT FD Rotterdam and USD 1808 per MT FD Rotterdam basis from July to September.
MEA
Bisphenol A prices rose sharply in the first half of the quarter in both Saudi Arabia and the UAE on the back of firm prices of the imports reaching the Middle Eastern shores. China, a key producer of Bisphenol A in the world, cut down the production rates in Q2, which curtailed the supply dynamics. The supply situation was further worsened when key BPA plants in China went for scheduled maintenance, creating havoc in the global market. Prices rose sharply in the Chinese market, and simultaneously, the imports became costlier into the quarter as buyers looked to secure material amidst improving demand in the Middle East. However, the prices eased towards the second half of the month, and prices went down sharply in the month of September 2023. Thus, after the conclusion of the third quarter, Bisphenol A prices in the United Arab Emirates market were assessed at USD 1490 per MT on a CFR basis.
For the Quarter Ending June 2023
North merica
The prices of Bisphenol A in the US have continued to follow a bearish trend in the overall Q2 of 2023, the same as the previous quarter in the backdrop of prevailing market conditions, as nominal changes in the significant factor were detected. Adequate supply in the domestic market resulted in light downstream demand of the polycarbonate industry and cheaper inflows all over, which culminated in weak prices of Bisphenol A. Market participants indicated that dampened demand for bisphenol A in the overseas market led their dealers to supply the product at a lower price causing this sluggish price trend in the Asia Pacific. Additionally, the inventory gradually increased to a high level on the back of the continuous flows of imports from Asian countries such as Thailand, Singapore, Japan, etc. However, local demand has remained muted with weak purchasing activity due to increased interest rates imposed by federal reserves in the US. Thus, at the end of the second quarter of 2023, the prices of Cumene were closed at USD 1480 /MT CFR, Texas.
APAC
The prices in the Asia Pacific region have been governed by a bearish trend for the entire Q2 of 2023, following the declining slope of the previous quarter, except for the second week of April, when the price trend of Bisphenol A in China showcased an upsurge of 1.1%, which is due to an increase in demand from downstream epoxy resin industry and adequate inventory level. On April 21st, Bisphenol A transactions were closed mainly at USD 1380/MT for FOB Qingdao, with a weekly decline of 3.2%. The prices further declined throughout the rest of the quarter and closed at a value of USD 1115/MT on the last week of June 2023. Several facts can be attributed to this further decline in the curve. The demand from downstream epoxy resin and Polycarbonate plastics was negative for the market. On the other hand, several plants in Northeast China have recently commenced operations, resulting in abundant inventory levels, further softening the price dynamics of the market. Moreover, Bisphenol A continued its declining price trend on the back of weak cost support and limited demand pressure from downstream derivatives.
Europe
In the Netherlands, Bisphenol A prices edged more in a southward direction in the month of April 2023 as demand remained weak and inventory levels reduced. Market players were cautious and focused on the shift of the macro-crisis regarding the consumer price index. In addition, because of the steady wave of the Brent crude price curve, feedstock phenol prices also fell, which weakened their support for the price of finished products. Moreover, the procurement activities across overseas countries such as Germany, China, and the USA were limited as dealers awaited clarity over fresh stock coming in April, keeping Bisphenol A market sentiments low despite falling costs. The prices further decreased over the second half, that is, from mid-May to June 2023, and with a slight increase closed at a value of USD 1740 per MT FD-Rotterdam (Netherlands). This is due to the sluggish price trend in the Asia-pacific region, and the inflow of cheaper imports into the European market had culminated in the downfall of Bisphenol A prices.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, the Bisphenol A market experienced sluggish sentiment in the North American region. In the USA, prices continue to decline owing to weak demand from downstream Polycarbonate and epoxy resin and soft prices of the imports reaching US shores which was further exacerbated by declining freight charges. Also, Covestro LLC in Texas had stagnant Bisphenol A production while there were steady imports from Asian countries like China and Japan as the supply chain was not disrupted, and there was no port congestion, leading to ample material availability in the domestic market. The Federal Reserve's decision to increase interest rates to combat inflation in the US affected consumer confidence, resulting in poor buying sentiment in the domestic market. Consequently, there were a limited number of queries from end-user industries. As a result, the CFR basis evaluation of Bisphenol A discussions was USD 1720/MT on March 31.
Asia- Pacific
Bisphenol A prices showed mixed sentiments in the Asia-Pacific region during the first quarter of 2023. Initially, Bisphenol A prices decreased owing to sluggish demand fundamentals, weak cost pressure from feedstock Phenol, and ample product availability in the region. Prices slightly increased in the mid-quarter following the conclusion of the Lunar New Year holiday, as market participants replenished material available in the domestic market. Moreover, rising prices of feedstock Phenol and Acetone increased the production cost of Bisphenol A in the Asian market. Despite this, demand from downstream Polycarbonate and epoxy resin remained sluggish in the regional market. In the final month of the quarter, there was a continued signal of bearishness in Bisphenol A prices, supported by low demand and ample inventories among local merchants. Furthermore, imports from other Asian countries remained firm, and feedstock prices dropped, putting downward pressure on Bisphenol A prices. As a result, the FOB Qingdao settlement price for Bisphenol A was USD 1385/MT on March 31.
Europe
The Bisphenol A market in Europe experienced a bearish sentiment in the first quarter of 2023 due to weak demand and firm inventories in the regional market. In Turkey, Bisphenol A prices decreased as most users from downstream Polycarbonate and Epoxy Resins had already purchased their required inventories, and supply was sufficient among local merchants, supported by enough imports from the Asian market. Furthermore, supply chains in Turkey improved after the devastating earthquakes, with no major disruptions reported by market participants and no port congestions. Asian suppliers offered low-price quotations to European traders as they were trying to liquefy their stock. However, buyers in the region remained cautious and adopted a wait-and-see approach toward the pricing trend. Consequently, the price of Bisphenol A on a CFR basis settled at USD 1730/MT on March 31.
For the Quarter Ending December 2022
North America
During the last quarter of 2022, Bisphenol A prices declined in the US market as imports remained cheaper on the US shores. BPA prices have traced a downward trend for the past three months, owing to ongoing market uncertainties due to rising inflation and the fear of recession in the domestic market. Furthermore, since the threat of recession has risen, domestic players have started showing mixed sentiments. Some producers have started to opt for production cuts to control the country's oversupply issue, while some have started providing discounts to sustain offtakes. However, the demand for the product has also plummeted from the domestic market. Meanwhile, imports from the Asian market have been steady amid a sharp drop in freight charges.
Asia Pacific
Bisphenol A prices continued their declining trend in the Chinese market into the last quarter of 2022. As of November 2022, Bisphenol A prices were assessed at USD 1690 per MT FOB Qingdao. Buying sentiment has been sluggish in the market as there were limited queries and small quantities of orders were placed during the quarter. Meanwhile, inventory levels were high, and supply dynamics were termed as stable to firms availing ample material availability in the market. Demand from downstream Polycarbonate and Epoxy resins remained stagnant to weak, resulting in stable volume offtakes with limited new orders from downstream users. Demand from the international market also remained dull as the fears of recession engulfed the Western market for the majority of the quarter resulting in soft consumption rates.
Middle East Asia
In the last quarter of 2022, Bisphenol A prices consistently declined through the months owing to stable weak demand dynamics and a steady inflow of BPA imports from South Asian and Far East Asian countries. Consumption of Polycarbonate and Epoxy resins remained stagnant as there was no change in the consumption rates caused by limited new orders, as reported by several market participants. During this quarter, freight charges have declined sharply in the global market as global supply chains reached normalcy. OPEC+ employed output cuts in order to stabilize the prices of crude oil. However, the lockdown in China and snug demand outlook in the short term meant output cuts have a limited impact on the prices. Thus, the cost pressure from upstream remained weak throughout the quarter on BPA.
For the Quarter Ending September 2022
North America
Bisphenol A price movement shifted in the North American region throughout quarter III of 2022. During the first month of the quarter, product prices continued to plunge, continuing the previous month's trend on the back of demand from the textile, automotive, and construction sectors. Production costs decreased due to a reduction in the feedstock Acetone prices. However, from the second month of Q3 price trend revived, and prices rose till the end of the quarter due to port congestion and affected supplies amid moderate demand from the downstream industries and an increase in the input costs. Consequently, Bisphenol A prices in the USA settled at USD 2630/MT at the end of Q3.
Asia
Bisphenol A prices showcased mixed sentiments during the 3rd quarter of 2022. In the first month, the product prices decreased due to the ample availability of feedstock acetone inventories at reduced prices. Then in the second month, the price trend shifted in China and Japan as the major producers in China and Japan cut down operational rates on Government's instructions due to heat waves in summer. Towards the end of the quarter, plants like Yanhua Polycarbonate's 150,000-tonne/year and Sinopec Mitsui's 120,000-tonne/year went under maintenance shutdown. Because of this, the product prices increased in the final month of Q3 on the back of stressed inventory levels. At the end of the quarter, Bisphenol A prices in China and India settled at USD 2310/MT and USD 1794/MT, respectively.
Europe
Bisphenol A price trend fluctuated in the European region during Q3 of 2022. During the first month of Q3, product prices decreased due to plummeting feedstock Acetone prices on the back of reduced offtakes from downstream industries, negatively affecting the product's production costs. However, from the second month, the price trend revived, and prices rose till the end of the quarter. A fall in water levels of the Rhine in Germany in summer affected supplies and caused supply chain disruption in the region. Additionally, the high inflation depreciated the Euro values against the US Dollar, more significantly towards the end of the quarter, further increasing the product values. After witnessing a decrease of 2% in the Q2 values, Bisphenol A discussions in the Netherlands settled at USD 2460/MT.
For the Quarter Ending June 2022
North America
The Bisphenol A market observed a mixed sentiment price trend in the US market during the second quarter of 2022. The limited supply of the upstream crude and the sanctions on the Russian crude import inflated the feedstock Benzene and Phenol prices, further influencing the Bisphenol A values. Bisphenol A prices increased in June due to inflation and the fear of a rising recession. However, the downstream derivative epoxy resins and the polycarbonate market became weak, ushering in poor buying sentiments of upstream Bisphenol A. Thus, due to the weak demand, the price of Bisphenol A shows a negative trend.
APAC
The weak buying sentiments from the Indian domestic market pulled down the Bisphenol A price trend for the quarter ending June 2022. The demand for Bisphenol A from the downstream plastic manufacturers dropped due to the poor requirement for the product. Moreover, the raw material prices showed a negative trend in the local market. Hence, following the upstream crude and feedstock phenol pricing, the Bisphenol A market also dropped. In addition, the price of the imported cargoes was declining, further dragging down the Bisphenol A price trend. South Korea is one of the major exporters of Bisphenol A; however, the South Korean manufacturers quoted price was low, negatively impacting the Bisphenol A market.
Europe
During the second quarter of 2022, the price of Bisphenol A showcased an uptrend in the European market. The price rise was supported by the increasing purchase from the downstream derivative polycarbonate markets, inclining the Bisphenol A pricing. Following the Russia-Ukraine conflict, the demand for Bisphenol A rose, and the purchasing activities were inflating in the domestic market. Furthermore, the soaring upstream Crude values due to the constrained availability of the product in the domestic market led to its derivatives price hike. In addition, the increase in the interest rates also added pressure to the situation mentioned above, thus resulting in the Bisphenol A price hike.
For the Quarter Ending March 2022
North America
During the first quarter of 2022, Bisphenol A prices witnessed a mixed trend with high volatility in the prices. Bisphenol A's price rose in January, followed by a drop in February due to the limited use of BPA in plastics used in food packaging, as excessive exposure to BPA can be harmful. In February, BPA prices declined by 3.2%, and the price settled at USD 4060 per MT FOC Texas. Later, in March, there was a slight rise in BPA prices owing to the soaring upstream crude and rising demand from automotive industries to produce polycarbonate plastic and epoxy resins.
Asia Pacific
Bisphenol A prices shows mixed sentiments in Asia during the first quarter of 2022. In January and February, prices dropped owing to the lacklustre demand from the domestic market along with the high inventory levels in the downstream industries. The price declined by about 4.4% from January to February. Later, in March, prices witnessed a rise due to the limited supply of the product from Taiwan, as it is the major exporter of Bisphenol A to India. Moreover, rise in construction activities in the Asian market resulted in high demand for downstream polycarbonate, epoxy resins etc., which influenced the Bisphenol A market. Thus, prices for Bisphenol A in India settled at USD 3056 per MT in March by the quarter ending 2022.
Europe
During the first quarter of 2022, Bisphenol A prices showcased marginal upward movement. The cost of Bisphenol A rose due to the high upstream crude and feedstock acetone and phenol prices as a result of Russia's invasion on Ukraine. Moreover, the disruption in trade due to soaring fuel prices also influenced the Bisphenol A market. In March, the prices of Bisphenol A in Turkey increased to USD 1642 per MT CFR Izmir.
For the Quarter Ending December 2021
North America
In Q4 2021, North America witnessed a consistent fall in the demand for resins amidst the appreciable improvement in the supply of feedstock Phenol. After the Ida hurricane in Q3, supply of Bisphenol A (BPA) improved linearly with resumption in plant operations. Plant operating rates almost reached normalcy by Q4 which led to vast product availability. Seasonal slowdown in demand especially from the automotive sector plummeted the demand for resin solvents in North America. In addition, export inquiries from various countries also remained dull amidst mounting inventory levels. However, in late-December, inquiries again increased which stabilized the declining trajectory of Phenol and Bisphenol A in the regional market. Feedstock Phenol FOB prices in USA were assessed at USD 1470 per MT in December.
Asia
BPA prices in the Asian market turned bleak in the second half of Q4 2021.The Chinese BPA market observed a slight rebound right after the Golden Week holiday, and then the offered quotations from the manufacturers fell tremendously in the third week of October. The spread between Polycarbonate and BPA widened in the regional market towards the closure of the month. Bisphenol market in China after experiencing stagnancy in early November tuned bearish towards the end of the month. The trading for downstream resin market appeared cold due to the decline in year-end offers. Buyers adopted a wait and see approach expecting a further decline in prices owing to the volatile demand. As upstream values of Phenol were also uncertain, limited purchases were witnessed in the final month of December. BPA prices in China were assessed at USD 2590 per MT towards the end of December.
Europe
In Europe, Bisphenol A prices witnessed mixed sentiments during Q4 owing to the volatility in prices of feedstock Phenol and Acetone during this quarter. Supply chain challenges and freight rates gradually eased entering Q4, however the energy crises in the regional led to higher plant operating cost. Resin demand remained in a narrow range with low operating rates of end use industries in the last month of Q4. After reaching record high, in December, Bisphenol A prices in Europe thus dwindled to USD 2240 per MT.
For the Quarter Ending September 2021
North America
The overall market of Bisphenol A in North America witnessed an upward trajectory during the third quarter of 2021. The prices of BPA surged effectively throughout the quarter. Cash prices for US-Southwest delivery locations were hiked in the mid-July trading, driven higher by ongoing uncertainty over wildfire impacts on power imports. Halt in the supply chain of feedstock from the Asian countries somehow affected the global petrochemicals market, which further led to a hike in the prices of BPA in North America. The demand for BPA by the downstream epoxy and Polycarbonate resin manufacturers also increased significantly in Q3 of 2021.
Asia
During the third quarter of 2021, the market outlook for Asian petrochemical industries remained bearish. Container shortages and high freight rates became a challenge in the shipping of products, while some China-based companies were affected by dual-control regulations introduced by the leading authorities by the end of Q3. In China, the FOB Tianjin price was settled at USD 4185/MT at the end of September. A steep rise in feedstock acetone and phenol in the international market resulted in a sharp spike in the prices of BPA in India. In India, Ex- Vapi prices escalated from USD 2846/MT to USD 3829/MT during the quarter. Leading domestic manufacturers of Phenol and Acetone face a surge in demand, just after the announcement of force majeure by Taiwan’s largest Acetone and Phenol manufacturer. This, force majeure also impacted the supplies to UK and US, and eventually affected the production of Bisphenol A, leading to a steep rise in its prices.
Europe
In Q3, the European market experienced mixed sentiments due to the limited supply of the key raw materials from several Asian countries. The price trend of Bisphenol A witnessed a steep rise in the European region due to the hike in demand from the downstream manufacturers. The critical shortage of containers and high shipping charges of BPA from Asia highly influenced the prices of the product in Europe throughout the quarter.
For the Quarter Ending June 2021
North America
Bisphenol A prices rose effectively during this quarter, backed by the curtailed supply activities across the Gulf of USA. In second half of February, chilling weather across Texas declined production activities across the area, which led to the shortage of Bisphenol A (BPA) and other downstream derivatives like Epoxy Resins and Polycarbonate across the region. Despite of the improvement in production activities during May and June, prices of BPA continued to surge till the end of the quarter, as the supply did not improve significantly. Therefore, prices of BPA rose from USD 3445/MT to USD 3730/MT within Q2 in USA.
Asia
Asian market showcased mixed sentiments in Q2, as the demand fundamentals varied country over country. In China, limited availability amidst firm demand from downstream Epoxy Resin and Polycarbonate sector increased the prices of Bisphenol A in the country till mid-May. Later, prices declined effectively in the month of June and reached USD 3140/MT in China. Meanwhile in the Indian market, prices fluctuated due to fluctuation in the demand fundamentals in effect of second wave of pandemic in the country. Demand from domestic Polycarbonate segment remained low, however epoxy resin segment dominated the overall consumption in India which made the prices to reach USD 3117/MT during last week of June.
Europe
European market was also affected by the global shortage of Bisphenol A (BPA), where the prices rose effectively and compelled the downstream manufacturers to increase their product prices across the region. Meanwhile, Covestro announced positive revision in prices of downstream Polycarbonate in Europe Middle East and Africa, due to consistent rise in price of Bisphenol A. Critical shortage of BPA in Asian market highly influenced the prices of the product in European market during this time period.
For the Quarter Ending March 2021
North America
Winter storm across USA disrupted the overall production of Bisphenol A, as most of petrochemical plants were idled due to unfavourable operating conditions. Hexion’s Deer Park Texas BPA plant faced force majeure as the weather conditions were not suitable to run the plant. This shut down affected the supply of BPA across the region, where the demand was running high from downstream epoxy resin and polycarbonate sector. Tight feedstock availability dented the PC production levels, forcing several players to raise their regional offers.
Asia
The Asian BPA market reported firm demand from the downstream sector amid persistent supply constraints during Q1 2021. In the Chinese market, imports were high due to firm demand from downstream Polycarbonate and Epoxy resin producers, although the supply remained insufficient, that supported the price uptrend. Meanwhile in the Indian market, downstream epoxy resin market was reaching its record high prices due to high demand and low supply of BPA. Bisphenol A prices in both the countries rose effectively within the quarter and were assessed at USD 1680/MT FOB China and USD 1256.26/MT CFR India during March 2021.
Europe
The European BPA market reported firm demand from the downstream sectors, although the supply remained critically low, which supported the prices effectively. Several plants across the region remained offline for different reasons, like Hexion’s Netherland plant faced force majeure due to technical glitch, which halted the regional supply. Meanwhile, buying activity remained strong, supported by better offtakes downstream Epoxy and Polycarbonate producers. On the other side Suez Canal blockage during March affected the supply of the region and provided temporary boost to the product prices.
For the Quarter Ending September 2020
North America
Bisphenol A demand in North America regained momentum after a strong uptick in demand was observed from the major end-markets automotive, construction and home-appliances sector following a weak second quarter due to the pandemic. With trading picking up speed prior to the new-year holidays and festive season, buyers and importers are busy in restocking inventories at this time. Lengthy supply however remained pressuring the US BPA producers who reported prices turning flat August onwards despite gradually improving demand.
Asia
The Asian Bisphenol A (BPA) markets registered strong demand growth in Q3 2020, with growing demand from the downstream Polycarbonate resins sector, driven by sharp uptick in the automotive and transportation sector which had been contributing to improved margins. Tight regional supply due to maintenance turnarounds in China further pushed the export prices of product during the quarter. It is being anticipated that Asian BPA supplies could stay tight for quite a while during Q4 2020 on production constraints, with consumers fearing that prices may not relax soon. Korea’s Kumho P&B Chemicals is slated to remain shut during the October month, further heightening the consumer worries.
Europe
European BPA producers reported muted third quarter as surging coronavirus cases knocked down the possibility of quick revival in the PC industry. Contrary to the Asian market, the European BPA industry remained well supplied with players continuously striving to improve margins by announcing small price increases in early September and Q4 negotiations. Resilient polycarbonate demand from the global medical equipment remained a positive highlight while sectors like automotive and transportation reported dull quarterly results.
