[PC Weekly Review] Equipment Resumption Increases Supply, Market Continues Wide Fluctuations

I. Key Market Focus This Week

The price spread between PC and bisphenol A narrowed month-on-month, while industry production profitability declined accordingly.

Cangzhou Dahua and Luxi Chemical’s facilities have resumed normal operations, and the industry’s capacity utilization rate has rebounded month-on-month.

Market bearish news was concentrated and fully priced in, and spot PC prices continued to decline broadly, with the weekly average price falling again.

II. Analysis of the PC Market Trends This Week

In this period (from May 29 to June 4, 2026), the domestic PC market continues to decline, with prices further dropping significantly throughout the week. As of the close on June 4, the mainstream prices for domestic PCs in East China are negotiated at 12,500-15,500 yuan/ton, down 700-1,000 yuan/ton compared to the previous period, representing a decline range of 4.91%-6.06%.

Ex-factory quotations from producers accelerated their decline, with cuts mainly in the range of RMB 300–1,000/mt, and more than half of the grades dropping by over RMB 500/mt. In midweek, two rounds of bidding by Zhejiang Petrochemical both opened sharply lower across the board, with the average transaction price falling by RMB 700/mt from the previous week, further weighing on market sentiment. On the supply side, as Cangzhou Dahua and Luxi Chemical resumed production, industry operating rates increased and cargo availability steadily expanded. Bearish sentiment spread across the spot market, and traders proactively lowered prices to move goods and recover funds, pushing seller quotations down successively. On the demand side, weak fundamentals continued to drag on the market. End-user orders remained sluggish in June, downstream buyers were slow to digest raw material inventories, and under the ongoing price declines, a strong wait-and-see attitude toward procurement prevailed, with only sporadic small-lot purchases for rigid demand. Market trading was dismal, with the characteristic of nominal prices but little actual.

III. Outlook for the Market

Next week, multiple bearish factors will continue, with an increase in supply combined with weak demand, making it highly likely that the domestic PC market will continue to fluctuate and decline.

Supply sideCovestro plans to restart its facilities, with multiple previously shut-down units set to resume production within the month. The industry's supply of goods is entering an increasing cycle, and the ongoing expectations of ample supply continue to pressure the market.

Demand sideIn June, end-user orders fell instead of rising. Operating rates in downstream products industries remained weak, demand-driven procurement was limited, and end users stayed on the sidelines waiting for lower prices, making it difficult for spot transactions to improve.

Cost sideBisphenol A remains weak under the drag of its own supply-demand imbalance, while the spread between PC and feedstock prices is still at a high level. Low feedstock prices continue to weigh on PC market sentiment.

Key Focus

Supply: the actual startup progress of Covestro and other units under maintenance, as well as changes in industry operating rates and cargo arrivals.

Changes in downstream end-user orders, factory restocking pace, and actual spot transactions.

Cost: The transmission impact of fluctuations in bisphenol A and phenol prices, as well as changes in their price spread, on PC quotations.