Bisphenol A Prices Dip Amidst low demand in Middle East Asia

Jeddah (Saudi Arabia): During March 2024, the Bisphenol A market witnessed a downturn in Asia and the Middle East, primarily attributed to sluggish demand in exporting nations like China and Japan. Concurrently, demand in the Middle East remained lackluster as Ramadan commenced, resulting in reduced activity due to shortened working hours during the fasting period. Throughout the month, the prices of feedstock Phenol and Acetone remained relatively stable.

In China, demand from downstream sectors like polycarbonate resin and epoxy resins faced constraints due to sluggish growth in the construction and automobile industries, impacting the market for Bisphenol A. The real estate sector, which experienced a 1.3% decrease in added value in 2023 compared to the previous year, had significant repercussions on local government revenues and associated industries, including those reliant on Bisphenol A. Official data indicated a decline in apartment sales in February 2024, reflecting weak market sentiments and reduced trading activity, affecting the demand for Bisphenol A. Manufacturers of Bisphenol A  grappled with a lack of buyers, while local governments faced substantial debt burdens.

Bisphenol A prices witnessed a decline in both the Middle East and Asia, attributed to factors such as the Ramadan lull and low import prices from China. As of week ending 1st March 2024The price of Bisphenol A was USD 1340/MT CFR Jeddah but by 29th March, it had dropped to USD 1170/MT CFR Jeddah. Similarly, in the UAE, the price of Bisphenol A was USD 1330/MT CFR Jebel Ali on 1st March, but by 29th March, it had declined to USD 1150/MT CFR Jebel Ali. The subdued buying enthusiasm and sluggish demand for Bisphenol A from importing nations, along with lower demand in western countries due to the sluggish performance of end-use construction industries, contributed to the overall market sentiment characterized by caution among buyers. Despite ample inventories, buying interests remained subdued, indicating a cautious approach among buyers awaiting clarity on pricing trends.

This decline in Bisphenol A prices underscores the impact of regional market conditions, including Ramadan-related slowdowns and geopolitical uncertainties, on petrochemical demand and pricing dynamics in the Middle East and Asia. The ongoing Israel-Hamas conflict in the East Mediterranean region has also contributed to a cautious approach among buyers in Jordan and Lebanon.

ChemAnalyst predicts a rise in Bisphenol A prices in the coming months, driven by expected enhancements in demand from both international and local markets. This forecast gains strength from the Chinese government's initiatives to bolster the sector, signaling a promising trajectory for Bisphenol A prices in the near term. Additionally, demand is projected to rebound in Gulf Cooperation Council (GCC) following Eid ul-Fitr, as buyers replenish stocks post the slowdown during Ramadan.