Daily review: PC Domestic Market Continues to Decline, Terminal Demand Remains Weak

1. Market Conditions

On June 3, 2026, the average PC market price was 16,242 yuan/ton, down 146 yuan/ton or 0.89% from the previous working day. Today, the downward trend in the domestic PC market remained difficult to reverse. Support from end-user rigid demand was weak, and coupled with suppliers’ substantial price cuts, bearish factors dominated the market. Downstream enterprises showed a clear wait-and-see attitude, mostly consuming existing raw material inventories. Holders faced pressure to ship and actively offered concessions to move cargo, causing the market center to decline noticeably. In terms of market prices, mainstream negotiated prices for low-end materials in East China were referenced at 13,650-15,500 yuan/ton, while negotiated prices for mid- to high-end materials were referenced at 18,500-19,200 yuan/ton. (As of 12:30 p.m. on the day of publication.)

Table: PC Market Prices

2. Upstream Market Dynamics

Crude oil: U.S. officials said an agreement with Iran could be reached within a week, causing oil prices to come under pressure and retreat intraday. However, Iran said it was still evaluating the final text of the memorandum of understanding, and the U.S.-Iran negotiations have stalled, with the opening of the Strait of Hormuz potentially delayed again. In addition, institutions warned that global crude inventories may fall to low levels before the peak summer driving season. Supported by these factors, international crude oil futures closed higher. On June 2, U.S. WTI crude oil July futures settled up $1.60/barrel, or 1.74%, at $93.76/barrel; Brent crude August futures settled up $1.02/barrel, or 1.07%, at $96.00/barrel. The main SC futures contract 2607 closed at 606.1 yuan/barrel.

BPA: The domestic market for BPA continues to experience a narrow downward trend. In the morning, the price of raw material phenol increased, which intensified market wait-and-see sentiment, but the impact on BPA has not been significant. Industry players are skeptical about the sustainability of the raw material price increase, and manufacturers are adjusting their operations steadily and weakly. Downstream inquiries are tentative, but there has not been any substantial improvement on the demand side, with negotiations primarily focusing on just-in-time needs.

3. Market Outlook

In the short term, fundamentals are likely to remain bearish. With terminal demand in the off-season, market buying interest is limited and suppliers are under pressure to ship. Prices may still have further downside, and it is preliminarily expected that the PC market will continue to trend weak tomorrow. In the East China market, the price range for low-end grades is expected to be 13,600-15,500 yuan/ton, while negotiations for mid- to high-end grades are expected to reference 18,000-19,000 yuan/ton.