price trend
| Gamma-PGA (gamma polyglutamic acid) |
In early June, the domestic PC market experienced a significant decline, with spot prices of various brands experiencing a significant drop. As of June 9th, the mixed benchmark price of Business Society PC was around 14633.33 yuan/ton, a decrease of 8.73% from the beginning of the month.
Root cause analysis
On the supply side: In June, the operating rate of domestic PC aggregation enterprises rebounded from a low level. Cohen Chuang has recently resumed work, and Luxi Chemical has increased the load of three facilities, with the industry load rising to over 65%. And there are still plans to restart multiple aggregation plants in the future, with production losses gradually shrinking. Currently, the weekly average production is close to 60000 tons, and the smoothness of aggregation plant shipments has declined, leading to a loosening of the willingness to raise prices. Overall, the supply side’s support for PC is showing a trend of weakening.
In terms of raw materials, it can be seen from the above chart that the domestic bisphenol A market stabilized after a decline in early June. International crude oil has experienced severe fluctuations, with raw materials acetone and phenol showing mixed ups and downs. On the other hand, after a decline from the end of last month to the beginning of this month, the spot price of bisphenol A has reached a temporary low. At the same time, with limited supply changes and weak demand, the market has entered a stalemate, and overall support for PC cost values is weak.
On the demand side: The sales situation of PC downstream factories is gradually entering the off-season, and the demand for sheet metal shells is weakening, resulting in low load levels for end enterprises. The current PC prices are falling at a high level, and there is a strong wait-and-see atmosphere in the market. The buyer is cautious in stocking up and has poor willingness to build a warehouse. The liquidity of the supply of goods has slowed down, and merchants’ offers have followed the market trend, resulting in an increase in profit sharing and order taking operations. The low-priced source of goods in the market needs to be digested, which creates a drag on the pricing focus of the aggregation factory. Overall, the demand side has poor support for PC spot prices.
Future forecast
The domestic PC market experienced a sharp decline in early June. The price of upstream bisphenol A has stabilized after falling, and the cost value is difficult to support PC. The load of domestic PC aggregation plants has been raised at a low level, and there are still expectations of relaxed supply in the future. On site trading is dominated by weak demand, with buyers chasing after gains and killing losses. Stocking is cautious, and trading is mainly focused on small orders. At present, the supply and demand of PC are weak, and the market orientation is relatively negative. It is expected to maintain a weak trend in the short term
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