[PC Weekly Review] Prices Weaken Within a Narrow Range

1. Review of the Domestic PC Market: The Market Slightly Declines

This week, the domestic PC market saw a slight decline. As of September 4th, taking Covestro 2805 in the East China market as an example, the closing price was 14,000-14,100 yuan/ton, with the average price for the week at 14,110 yuan/ton, a decrease of 1.26% compared to the previous week. For domestic sources, taking Luxi 1609 in the East China market as an example, the closing price was 11,000-11,000 yuan/ton, with the weekly average price at 11,000 yuan/ton, a week-on-week decrease of 0.09%.

2. Driver analysis: The peak season downstream is not as strong as expected, leading to just-in-time purchasing.

This week, the domestic PC market experienced a slight decline, primarily due to downstream just-in-time buying supporting the market. Most factories maintained stable offers, with a few slightly lowering their prices, and offers from stockholders showed minor fluctuations. The expected peak season for downstream demand did not materialize, leading to limited demand recovery. The PC market experienced a stalemate in transactions, with some actual deals slightly declining. During the week, the price of raw material bisphenol A increased, putting additional cost pressure on the PC market. However, due to the market supply and demand stalemate, it was difficult for the market to follow the upward trend.

3. Market Outlook: The market may fluctuate within a narrow range at a low level.

The domestic PC market is expected to experience a slightly weak consolidation next week. Recent price changes in the PC market are mainly driven by supply and demand factors. Downstream demand shows signs of a peak season that is not very strong, with mainly rigid demand supporting the market. Overall PC supply remains ample, and sellers maintain an active shipment attitude. It is expected that market prices will be slightly weak in negotiations next week. Meanwhile, the raw material bisphenol A still has some room for a slight upward movement, putting considerable pressure on PC costs. Therefore, the decline in the PC market is expected to be limited. In the short term, the price of domestically produced goods in East China is expected to range between 10,500 and 11,000 yuan per ton.