PC Market Struggles with Weak Demand and Price Pressure

Key Takeaways:

• Polymer prices show mixed trends, with minor fluctuations, and some types holding steady.
• Demand for polycarbonate (PC) remains weak, as the expected peak demand season didn’t materialize.
• Oversupply and low demand are likely to keep PC market prices stagnant or under pressure.
• Maintenance shutdowns at key facilities in China may affect the supply of MMA and polypropylene.
• Raw materials for PC production, like bisphenol A, are stable but provide limited support to the market.

Polymer Prices: Mixed Trends with Key Prices Holding Steady

• Low K (DG700): Rs. 78.75, Ex Nhava Sheva/Mundra
• Low K (B57): Rs. 83.50, Ex Nhava Sheva/Mundra
• LG LS100H: Rs. 76, Ex Mundra/Bhiwandi
• LLDPE (±0): Rs. 86.5/kg, Ex Mundra/Bhiwandi
• LDPE (±0): Rs. 116/kg, Ex Mundra/Bhiwandi
• HDPE PE100 natural (±0): Rs. 88/kg, Ex Mundra/Bhiwandi
• HDPE PE100 black (±0): Rs. 90/kg, Ex Mundra/Bhiwandi
• HDPE HM (±0): Rs. 90/kg, Ex Mundra/Bhiwandi
• HD Blow Molding (±0): Rs. 91/kg, Ex Mundra/Bhiwandi
• PP Raffia (-0.50): Rs. 90.50/kg, Ex Godown
• PP film (±0): Rs. 100/kg, Ex Godown
• PPCP (-1): Rs. 98/kg, Ex Godown
• PP Lamination (-0.25): Rs. 100.75/kg, Ex Godown

Demand Update: Limited Support Amid a Missed Seasonal Surge for PC

• Demand for PC has not provided substantial support, as end-market consumption remains weak. The traditional peak season, often referred to as the "Golden September and Silver October," did not bring the expected demand surge.
• Downstream buyers remain cautious, resisting higher-priced PC goods. Bidding prices from Zhejiang Petrochemical have dropped, adding to market uncertainty and reinforcing a wait-and-see approach among buyers.
• Load recovery at downstream manufacturing facilities has been minimal, with production primarily relying on maintenance supplies instead of increased stockpiling or new purchasing. This lack of recovery has hindered the PC market from finding stability, keeping spot prices from solidifying at a higher level.
• The PC market may continue to face downward pressure, with the Asian PC market expected to navigate weakly through November 2024. The ongoing supply-demand imbalance is likely to remain a significant challenge.
• High supply volumes, stable but unsupportive raw material costs, and subdued demand from downstream sectors make a price recovery unlikely.
• While the PC market has avoided major price declines, its prolonged stagnation reflects persistent oversupply and limited demand support, with prices at risk of further declines as 2024 progresses.

Raw Material News: Bisphenol A and Precursors Show Stable Performance

• Jiangsu Jiankun has shut down its Methyl Methacrylate (MMA) unit for maintenance on November 14, 2024. The unit is located in Taixing, Jiangsu, China.
• The annual rate of inflation based on the Wholesale Price Index (WPI) was recorded at 2.36% in October 2024, compared to 1.84% in September 2024.
• PetroChina Liaoyang is planning to shut down its Polypropylene (PP) unit for maintenance from November 21 to November 30, 2024. The unit is located in Liaoyang, China.

Expert Opinion on Polymer Market Trends

• The raw material landscape for PC production has remained relatively stable in early November, particularly in the bisphenol A market. Asian bisphenol A prices have reached a stable phase after a previous decline, resulting in minimal impact on overall PC production costs. Prices of phenol and acetone, direct precursors of bisphenol A, have also shown weak but steady performance, providing only moderate support to the PC market.