[PC Daily Review] Weak Cost Support, Market Fluctuates Narrowly at Low Levels

1. Today’s Summary

International crude oil fell sharply over the weekend, weakening the overall cost sentiment in the chemical sector and dragging down market sentiment for PC as a whole.

The price of raw material bisphenol A remains stable, with no significant fluctuations on the cost side, providing a neutral support for PC.

At the beginning of the week, manufacturers’ price adjustments diverged, and the market was generally stable but slightly weak. Only some grades in South China saw substantial discounts, while mainstream grade prices remained firm.

Downstream rigid demand follow-up is weak, market trading remains sluggish, industry profits have slightly declined, and the market continues to fluctuate at low levels.

2. Spot Overview

Today, the domestic PC market in China moved weakly with consolidation, and price trends varied across regions and grades. In East China, quotations for mainstream grades from Covestro, Lotte, and Weiyuan remained stable, with overall fluctuations limited. In South China, the price of Luxi 1609-11 fell by RMB 350/mt, indicating a clear loosening in some local supply. Affected by the pullback in crude oil, overall market wait-and-see sentiment intensified. In East China, the transaction focus for domestically produced material shifted slightly downward, with some cargoes falling by RMB 150-300/mt compared with last Friday. Downstream end-user orders remained subdued, and only small-lot purchases for rigid demand were seen in the market. Transactions were difficult to expand in volume, high-priced cargoes faced resistance in shipment, and the overall market sentiment remained weak.

III. Production Dynamics

Domestic PC facilities are operating steadily, and Luxi Chemical’s two production lines are running normally, with industry-wide operations remaining stable. Raw material bisphenol A prices are holding steady, and PC production gross margins remain in positive territory; current industry profits have slightly contracted compared with earlier periods. Weekly data show capacity utilization has edged up slightly and industry supply is relatively stable, while weekly profits continue to decline and profit margins have slightly weakened.

IV. Related Products

The bisphenol A market was in a stalemate and remained stable, with the mainstream price in East China at RMB 8,700/ton. Although the decline in crude oil weighed on the chemical market, bisphenol A was already suffering significant losses, and producers showed a strong willingness to support prices, leaving little room for quotations to move lower. Downstream buyers remained cautious and on the sidelines, with only modest essential demand; the upstream raw material market continued to consolidate within a narrow range overall, providing limited cost support for PC.

5. Price Forecast

Short-term PC market continuationNarrow fluctuations at a low levelTrend: The decline in crude oil prices is suppressing market sentiment, and downstream demand is weak due to the off-season, leaving the market lacking upward momentum. However, current prices are at their lowest levels of the year, risks have been largely released, and manufacturers have a strong willingness to support prices. Coupled with stable raw material prices providing a floor, there is limited room for further declines. Overall, with a stalemate between bullish and bearish factors, the PC market is expected to remain stable to slightly weak in the short term.