In December, the domestic bisphenol A market mainly experienced a decline. According to the Commodity Analysis System of Business Society, the mainstream market price of bisphenol A was reported at 10137 yuan/ton on December 1st, and 9625 yuan/ton on December 18th, a decrease of 5.06%. The main reason for the continuous decline of bisphenol A in this round is that there are many device restarts; The second is the production of new devices, with sufficient supply; Thirdly, demand remains sluggish. Specifically:

Region/ Price on December 1st/ Price on December 18th/ Decline

East China region/ 10200./9650./550

Shandong region/ 10100./9550./550

The supply side is loose in December. There were many maintenance and unplanned parking devices in November, but they gradually resumed in December. There are many new devices added in December, and the market expects an increase in supply. The supply side is loose. Recently, delivery contracts for bisphenol A factories have been the main focus, and spot trading in the market has been flat. As of now, the negotiated price for bisphenol A in the market has reached 9600-9700 yuan/ton.

From a cost perspective, the dual raw materials are currently fluctuating at a low level after a decline in the early stage, with fluctuations ranging from 150 to 250 yuan/ton in December, with relatively small fluctuations. The negotiated price of phenol in the East China region is between 7750 to 7850 yuan/ton, while the mainstream negotiated price of acetone in the East China region is 6800 yuan/ton. The average cost of bisphenol A fluctuates between 10000 to 10500 yuan/ton. Currently, the theoretical value of the bisphenol A factory is in a loss making state, It is expected that the cost range of bisphenol A will fluctuate in late December.

The demand for the two downstream products is weak, with insufficient transactions and weak market volatility. The downstream epoxy resin market is weak, and the overall operating rate is less than 50%. Enterprises are mainly bearish about the future market. The East China liquid epoxy resin market offers 13000-13400 yuan/ton of purified water for delivery, and the Mount Huangshan solid epoxy resin market negotiation price is 13000-13400 yuan/ton for cash delivery. The downstream PC market is weak and volatile, with mainstream negotiations for injection grade high-end materials in East China ranging from 16000-17000 yuan/ton. In terms of equipment, Zhejiang Petrochemical’s PC Phase I unit is planned to restart, with no significant fluctuations and an operating rate of less than 50%.

As the end of the year approaches, the industry is sluggish and volatile, and there is a lack of positive market news. Currently, bisphenol A is facing an increase in supply and the gradual release of production capacity. Traders have a weak mentality, and it is expected that bisphenol A will continue to hit the bottom in the short term. If the cost side is supported, bisphenol A may remain low and hover. Considering the lack of strength in the two downstream markets, it is highly likely that bisphenol A will fluctuate at a low level.