Polycarbonate Prices shows a Decline in North America and Europe in May 2024

During the week ending on 31 May 2024, the price of Polycarbonate (PC) experienced notable fluctuations across various global markets, reflecting regional economic conditions and sector-specific trends. In Europe, PC prices decreased by approximately 3.6%, primarily due to stagnation in the EU construction sector. The construction sector, a major consumer of PC, has struggled with recovery despite substantial government support in recent years, which initially boosted demand for steel products. Since early 2023, macroeconomic challenges and market uncertainties have led to a decline in construction activities, negatively impacting PC demand and contributing to the recent price drop.

In the US market, PC prices decreased due to an ample supply, which pressured sellers to lower their prices. Despite this decline, demand for PC remained robust, bolstered by a significant rise in automotive sales in May. The seasonally adjusted sales rate exceeded 16 million for the first time this year, reflecting a strong automotive market. All major automakers reported increased sales compared to May 2023, except for Acura and Volvo. Additionally, the price of the feedstock Bisphenol A remained unchanged, contributing to market stability. However, PC consumption displayed a lighter pattern initially, with a focus on maintaining production and digesting inventory. The load of downstream enterprises declined, weakening their enthusiasm for stockpiling, and overall consumption decreased. Buyers showed resistance to high-price sources, and the demand side provided poor support for spot prices.

Meanwhile, in Mexico, PC prices dropped by approximately 6.2%, primarily due to cheaper imports from overseas, particularly the USA, where prices dipped due to low demand from the downstream automobile industry. The Mexican market also saw ample PC supply in inventories at warehouses and ports, while demand remained average, creating a bearish market situation.

In contrast, the Chinese PC market remained stable this week. The unchanged price of feedstock Bisphenol A contributed to steady production costs, while consistent upstream crude oil prices further supported market stability. The increase in U.S. commercial crude oil inventories by 1.2 million barrels, along with changes in gasoline and distillate fuel inventories, also played a role in maintaining steadiness in the PC market. Overall, the total commercial petroleum inventories saw a significant rise of 13.5 million barrels, contributing to the observed stability in the Chinese PC market.

According to ChemAnalyst, the price of Polycarbonate (PC) is expected to remain stable or potentially see a slight increase in June 2024. This trend is attributed to the ongoing stability in crude oil prices on a weekly basis. Additionally, seasonal factors are likely to influence the market, as demand for PC typically rises during the peak summer months.