Bisphenol A Continues its Upward Climb in India Amidst Extended Shortage from Exporting Countries

As bisphenol A is majorly imported from Brazil and Taiwan in the domestic market, limited supply of the product from Taiwan has caused a gradual increment in the prices of Bisphenol A in India since mid-January. Even though the demand fundamentals of the product have remained stagnant, limited availability has stressed buyers leading to a sudden increase in procurement activities. Buyers were heard continuously restocking their inventories under expectations of further shortage in the regional market due to several production halts scheduled in the coming month. Prices of downstream epoxy resins have also turned firm taking cue from recent price surges in the raw material front which is hampering the producers’ margins.

In December, the market movement was slow which caused the prices of Bisphenol A to stabilize. Bisphenol A prices remained range bound in India influenced by the global demand pattern which turned sluggish due to the year-end lull. In India, offtakes of the product have been dull due to the bearish buying activities for downstream Epoxy Resin post the festive season in India.Contrary to the market scenario in December, Bisphenol A prices have gained by nearly 3-4% in the whole of January.

As per ChemAnalyst. “Buzz of a decline in overall regional production is expected to continue adhering an upward pressure upon the prices of Bisphenol A in India. A large volume of BPA stocks is expected to be diverted to Polycarbonate manufacturing given its high demand. Favourable demand pattern amidst line of supply changes is likely to support its prices in February.”