For the Quarter Ending September 2024
North America
In Q3 2024, the Bisphenol S market in North America saw a significant decline in prices, with the USA experiencing the most pronounced changes. Several factors contributed to this downward trend, including oversupply due to abundant global production and weak demand from key sectors such as polycarbonate and epoxy resins. Economic challenges and a seasonal slowdown further pressured the market, while low import prices and reduced cost support from key feedstock phenol, coupled with falling crude oil values, intensified the bearish pricing environment.
The market also faced difficulties stemming from decreased manufacturing activity and cautious buying behavior due to an uncertain demand outlook. Overall, the trend reflected negative sentiment, with a slight decrease in prices compared to the same quarter last year and a marginal drop from Q2 2024.
The most notable price difference occurred between the first and second halves of the quarter. Q3 2024 was marked by a steady downward trajectory in Bisphenol S prices, highlighting the ongoing challenges in the market.
APAC
Throughout Q3 2024, the Bisphenol S market in the APAC region experienced stable pricing, maintaining a consistent sentiment throughout the quarter. This stability was driven by steady demand from key downstream industries, particularly polycarbonate and epoxy resin sectors. Despite challenges in the end-use construction sector due to seasonal factors such as heavy rainfall, this impact was offset by strong demand from the automotive industry, which played a crucial role in sustaining market prices. Supply constraints also contributed to the stable pricing environment, with limited availability of Bisphenol S supporting price levels. Additionally, global procurement activities and seasonal trends influenced market conditions, helping to maintain a balance in supply and demand. In India, the market saw the most significant price changes, driven by high import costs, rising feedstock prices, and strong demand from sectors like automotive. Overall, the regional trends indicated a balanced dynamic, where seasonality impacted construction, but other sectors ensured stable demand. By the end of Q3 2024, Bisphenol S prices in India stood at USD 3613/MT CFR JNPT, reflecting a 4% increase from the previous quarter, signaling a stable market environment.
Europe
Throughout Q3 2024, the Bisphenol S market in Europe experienced a consistent decline in prices, influenced by several critical factors. Weak demand from key downstream sectors, such as epoxy resin and polycarbonate, was a primary driver of the downward trend. The slowdown in construction and automotive industries further exacerbated this decline. Additionally, the market faced an oversupply, with ample stock of finished Bisphenol S contributing to price stability despite the weak demand. Lower prices of the main feedstock, Phenol, played a role in the price reduction, while rising sulphuric acid costs had a limited impact on overall pricing pressures. The decline in crude oil prices, following the resumption of production in the U.S. Gulf of Mexico post-Hurricane Francine, also contributed to the decrease in Bisphenol S prices. In Germany, the market witnessed the most significant price changes, with a modest decrease from the same quarter last year and a notable drop from the previous quarter in 2024. Overall, Q3 2024 marked a challenging period for the Bisphenol S market in Europe, with a clear downward pricing trajectory amidst sluggish market conditions.
For the Quarter Ending June 2024
North America
In Q2 2024, the pricing environment for Bisphenol S in North America was notably positive, characterized by a consistent upward trend. This quarter saw steady price hikes primarily driven by sustained demand growth in key downstream industries PC and epoxy resin. Increased costs of fundamental feedstocks like phenol and sulfuric acid, coupled with elevated crude oil prices, significantly compounded production expenses.
Plant shutdowns in exporting Asian nations, including Zhejiang Petrochemical, and disruptions in Guangdong province due to adverse weather conditions further exacerbated scarcity, pushing prices higher. Additionally, container shortages and delays in empty container returns disrupted global supply chains, affecting BPS transportation and pricing.
In the USA, which experienced the most significant price changes, the market reflected robust demand coupled with constrained supply, intensifying the upward pricing pressure. The second quarter saw a significant increase in prices compared to the previous quarter, underscoring a vibrant market sentiment. The correlation between seasonal demand spikes, particularly in the construction and electrical sectors, with the supply chain disruptions, exacerbated the price surge.
APAC
In Q2 2024, the pricing environment for Bisphenol S in the APAC region was marked positive, characterized by a consistent upward trend. This quarter has witnessed steady price hikes primarily driven by sustained demand growth in key downstream epoxy resin and PC industries due to growing in the construction and automobile sector. Increased costs of fundamental feedstocks such as phenol and sulfuric acid have also played a crucial role, coupled with elevated crude oil prices, which have compounded production expenses. Supply-side constraints, including maintenance activities and unexpected plant shutdowns, such as those at Zhejiang Petrochemical and disruptions in Guangdong province due to adverse weather conditions, have further tightened market conditions, reducing overall industry capacity utilization rates.
Focusing on India, which experienced the most significant price changes, the market reflected robust demand coupled with constrained supply, intensifying the upward pricing pressure. The second quarter saw a 17% increase in prices compared to the previous quarter, underscoring a vibrant market sentiment. Additionally, a slight price increase between the first and second halves of the quarter highlights ongoing bullish trends. The correlation between seasonal demand spikes, particularly in the construction and electrical sectors, with the supply chain disruptions, has exacerbated the price surge.
Europe
In Q2 2024, the European Bisphenol S market saw a consistent upward price trend driven by several factors. Sustained demand growth in key downstream industries like polycarbonate (PC) and epoxy resin, coupled with increased costs of feedstocks such as phenol and sulfuric acid, played a crucial role. Elevated crude oil prices further compounded production expenses. Supply-side constraints, including maintenance activities and unexpected plant shutdowns at facilities like Zhejiang Petrochemical and disruptions in Guangdong province due to adverse weather conditions, tightened market conditions and reduced industry capacity utilization rates.
In the Netherlands, robust demand coupled with constrained supply led to significant price increases, underscoring a vibrant market sentiment. The second quarter saw a marked rise in prices compared to the previous quarter. Furthermore, the EU's ban on Bisphenol A in food packaging has significantly increased the demand for Bisphenol S as a preferred alternative. Seasonal demand spikes in the construction and electrical sectors, combined with supply chain disruptions, further exacerbated the price surge.
Overall, Q2 2024 saw Bisphenol S prices driven higher by strong demand, supply constraints, and rising feedstock costs. This positive pricing environment is expected to continue, with sustained demand and ongoing supply challenges keeping the market bullish.
For the Quarter Ending March 2024
North America
North American Bisphenol S (BPS) prices plunged in Q1 2024, painting a bearish market picture. Several factors contributed to this decline. Firstly, a drop in export demand led to a Bisphenol S surplus, exerting downward pressure on prices. Additionally, a slowdown in the construction sector, a major BPS consumer, further weakened demand.
The US market, a key player, mirrored this trend. Prices steadily decreased throughout the quarter due to reduced demand, surplus inventory, and seasonal slowdowns during Lunar New Year and Ramadan. Compared to the same period last year and the previous quarter in 2024, BPS prices in the US fell significantly. Notably, BPS prices even dropped 12% within Q1 itself.
The quarter ended with US BPS priced at USD 1450/MT CFR Texas, reflecting the overall negative sentiment and a persistent downward trend in the North American BPS market.
Europe
European Bisphenol S (BPS) prices in Q1 2024 held mostly steady, with some volatility in the Netherlands. The market navigated low demand from downstream sectors, particularly construction, balanced by stable feedstock prices and underlying geopolitical tensions in the Middle East. Across Europe, BPS prices remained largely unchanged compared to the previous quarter. Moderate demand from construction and other industries was counterbalanced by cautious buying and a generally negative market sentiment. Additionally, stable prices for phenol and acetone, key feedstocks, helped maintain overall price stability. The Netherlands, however, witnessed some price fluctuations. Initial surges due to increased construction and automotive demand were dampened by shipping disruptions which delayed deliveries. This supply-demand imbalance tightened the market, leading to price hikes. Despite the Dutch fluctuations, the broader European BPS market in Q1 can be characterized as stable. The quarter ended with BPS priced at USD 1960/MT FD Rotterdam in the Netherlands.
APAC
The pricing environment for Bisphenol S in the APAC region during Q1 2024 has been characterized by various factors that have influenced market prices. Overall, the market has experienced a mix of positive and negative trends, with some countries seeing significant price changes. In India, the pricing situation for Bisphenol S has been particularly dynamic. The market has witnessed a steady increase in prices throughout the quarter, driven by sustained demand from downstream industries such as polycarbonate and epoxy resin. The construction and automobile sectors in India have been the key drivers of this demand, as the country experiences a construction boom supported by government investments and streamlined regulations. The tight supply conditions and low inventory levels have also contributed to the price increase in India. The overall trend in the APAC region has seen a correlation between increased demand from the construction and automobile sectors and higher Bisphenol S prices. This has been further supported by the positive growth in the manufacturing sector, driven by global demand and reduced inflationary pressures. However, the market has also been influenced by factors such as low feedstock prices, which have led to a decrease in Bisphenol S prices in some countries.
For the Quarter Ending December 2023
North America
The North American Bisphenol S (BPS) market witnessed a notable decline, with prices falling by approximately 10-15% in Q4 2023 compared to the previous quarter, marking a departure from earlier stability. Key drivers contributing to this downward trend included weakened demand from vital industries such as thermal paper and epoxy resins. Factors like a potential economic slowdown, the increased adoption of BPA-free alternatives, and downstream industries utilizing existing inventory instead of purchasing new BPS all played roles in this demand reduction.
The ample supply of BPS, marked by sufficient inventory levels and stable production capacity across the region, further contributed to the decline. Import competition, especially from Asia, introduced competitive pricing that added to the downward pressure on domestic prices. Despite moderate feedstock costs, with stable or slightly lower prices for phenol, a crucial BPS component, the overall market experienced the impact of weakened demand and increased competition.
Regional variations were evident, with prices generally higher in the Northeast and Midwest due to elevated transportation costs and concentrated demand. Conversely, prices were lower in the South and West regions due to their closer proximity to production facilities and less concentrated demand. This decline had varying impacts on downstream industries, benefiting users facing cost pressures, while BPS producers likely experienced lower profitability, contingent on individual production costs and hedging strategies.
Europe
The European Bisphenol S (BPS) market underwent a dynamic Q4 2023 marked by price volatility. Initially, prices experienced a decline in October and November, reflecting weakened demand from key industries like thermal paper and epoxy resins. Elevated inventory levels and stable to slightly lower feedstock costs, particularly for phenol, contributed to the downward pressure. However, the latter part of the quarter saw a gradual recovery, with prices reaching levels closer to Q3. This recovery was influenced by a seasonal demand surge, particularly in thermal paper during the holiday season, and production adjustments as some producers reduced output in response to earlier price drops. Key drivers included stable phenol prices, preventing significant cost-driven spikes, and the delicate balance between ample inventory and fluctuating demand. The presence of multiple producers in the European market maintained high competition, contributing to price sensitivity. Import activity from other regions, such as Asia, played a marginal role in influencing prices, remaining at moderate levels. Regional variations were evident, with prices generally higher in Western and Central Europe due to higher transportation costs and concentrated demand, while Eastern Europe experienced lower prices, benefiting from closer proximity to production facilities and less concentrated demand.
Asia Pacific
The Asia Pacific Bisphenol S (BPS) market presented a diverse landscape in Q4 2023, featuring dynamic and varying price movements across key regions. In China, prices underwent a pronounced downward trend, significantly lower than Q3, attributed to weakening demand in sectors like thermal paper and epoxy resins, coupled with substantial existing inventory and government interventions to control price hikes. India, in contrast, maintained relatively stable prices with minor fluctuations. This stability was supported by sustained demand in construction and electrical appliances, as well as the advantage of lower phenol prices compared to China. Southeast Asia exhibited volatile price movements, influenced by local demand variations and import dynamics. Some countries experienced price decreases due to import competition, while others saw fluctuations based on their unique demand patterns. Key drivers included moderating phenol prices, limiting production cost-driven increases, and varying demand dynamics. The interplay of ample inventory, particularly in China, and contrasting regional demand trends played a crucial role. Government policies, particularly in China, indirectly impacted the market dynamics. Import activity, notably from China, influenced prices in Southeast Asian countries, creating downward pressure. Regional variations were significant, with China witnessing a substantial price decrease, India maintaining stability, and Southeast Asia experiencing volatility shaped by local demand and import factors.
