[PC Daily Review] Market Trading Remains Weak, With The Center Oscillating Narrowly

1 Today's Summary

1. MondayInternational crude oil rises ， ICE Brent crude oil futures contract for June is up $2.84 at $112.10 per barrel. 。

②、 Raw material bisphenol A East China market closed at 9,650.yuan/ton, down 50 yuan/ton month-on-month.

3. This week, many domestic PC producers held firm on prices, while Zhejiang Petrochemical’s auction prices fell by RMB 200/ton.

Table 1 Summary of Domestic PC Prices (Unit: yuan/ton)

Today, the domestic PC market fluctuated within a narrow range. As of this afternoon’s close, the negotiated price range for domestically produced PC materials in the East China market was RMB 14,350–16,700/ton, with the overall transaction center remaining largely stable compared with yesterday. This week, domestic PC producers have generally maintained firm pricing, with ex-factory prices staying flat or rising by RMB 200/ton. Zhejiang Petrochemical concluded two rounds of auction transactions, down RMB 200/ton from last week. In the spot market, both East China and South China continued to show a stalemate and consolidation pattern. At present, the industry is characterized by both weak supply and weak demand. Although firm pricing from producers is supporting spot prices, cost transmission remains sluggish, and downstream factories’ order intake has been clearly restrained. Procurement is mainly based on rigid demand to fulfill previous orders. Trading activity in the market remains light, with both buyers and sellers mostly adopting a wait-and-see attitude for further market direction.

3 Production Dynamics

Amid shutdowns for maintenance at multiple PC units, the industry’s capacity utilization rate hit its lowest level of the year. Today, the bisphenol A feedstock market in East China fell by RMB 50/mt to RMB 9,650/mt, while the gross profit level of China’s PC industry increased by RMB 45/mt from the previous working day to RMB 2,215/mt.

Figure 3 Weekly Trend Chart of Domestic PC Capacity Utilization Rate	Figure 4 Comparison of Domestic PC Profits and Prices (Unit: RMB/ton)
Data source: Longzhong Information	Data source: Longzhong Information

4 Price Prediction

With multiple PC device maintenance plans being implemented, the industry's capacity utilization rate has dropped to its lowest level in nearly three years. However, weak downstream demand continues to dampen market trading activity, and the weak price of raw material bisphenol A adds downward pressure on costs, which is also negative for PC. Overall, the combination of weak supply and demand along with declining costs suggests that the domestic PC market is likely to mainly experience weak adjustments in the near term, with attention needed on further market trading changes.

5. Information on Related Products

Bisphenol A market: Taking East China as the benchmark, bisphenol A in East China closed today at RMB 9,650/ton, within a range of RMB 9,600–9,700/ton, down RMB 50/ton from the previous trading day, in line with morning expectations. The East China market continued to move lower today. Downstream buying on a just-needed basis was insufficient, buying interest was thin, counteroffers were at low levels, and holders mainly focused on shipments. Offers loosened, and the focus of negotiations edged down within a narrow range.

6 Data Calendar

Table 2 Overview of Domestic PC Data (Unit: yuan/ton)