June Bisphenol A inside and outside the disk encountered "Waterloo"

Sinochem Xinwang reported that in June, Bisphenol A encountered “Waterloo” inside and outside the market, with a large drop, a rapid fall, and the market “dive and dive”. Market confidence fell to the freezing point and experienced the most tragic adjustment after the 2008 financial crisis. The depth of dealerships was severely tied up and the losses were heavy. The cost and stock fell upside down by one or two thousand yuan (t price, the same below) became the norm. As of the end of June, the mainstream reference price in the East China market was 15,800 yuan, a decrease of 16.62% from the end of May.

During the first half of June, the bisphenol A market oscillated in a narrow range, coupled with the decline in crude oil prices and the weakening commodity environment, which engulfed market confidence. The external disk of Bisphenol A was unable to sustain itself. The down channel officially opened. In the domestic market, the mainstream market in East China fell from 18,700 to 19,200 yuan in early June to 18,300 to 18,700 yuan, down by 450 yuan. In the mid-to-late June, phenol was broken and the domestic petrochemical companies lowered their quotation due to inventory pressure. The attack of the origami hit the market sentiment of bisphenol A. The fear of panic selling continued, low-price rumors emerged one after another, and the bisphenol A market went from bad to worse. In late June, with the spot price of bisphenol A gradually approaching the cost line, the external disk fell from 2,350 to 2,400 U.S. dollars at the beginning of June to 2050 to 2,100 U.S. dollars at the end of June, falling by 300 U.S. dollars or 12.63 percent.

The related product, chain-down price, bisphenol A, is the main downstream product of epoxy resin, epoxy resin is the other raw material of epichlorohydrin, and epichlorohydrin is the main downstream epoxy resin, and these three have formed a small cycle. In June, the epichlorohydrin market “turned green” all the way, due to the plunging prices and the market's subduction, many parties did not fight back, the price fell more than 1,000 yuan; the rapid decline of bisphenol A, the downstream epoxy resin users are highly cautious We wait and see, and actually make bad investments. We are extremely conservative about the overall purchase of raw materials, and more goods are purchased on demand, mainly based on small orders, so that the two major raw materials shipments are further weakened. The long road to raw material exploration is long and the cost is significantly bearish. The downstream demand for terminals is weak and the volume of transactions is poor. The epoxy market continues to release and destocking process is difficult. The price is lowered by more than RMB 1,000. In addition, a large number of labor shortages in the busy season, small and medium-sized manufacturers have chosen to reduce the burden of parking, not only to further weaken the support of raw materials of bisphenol A, epichlorohydrin, but also to increase the mood of downstream end-users cautious risk aversion, bisphenol A and downstream And related products lose their support and low-end prices are frequent.

Upside-down is still inhibited in the spot Thailand PTT's 150,000-ton/year bisphenol A plant has been operating normally since March this year. With the advantage of no-tariff and no-anti-dumping tax, it has rapidly opened up the Chinese market. In addition, Japan’s earthquake and Taiwan’s South Asia facility are not As a result, supply has decreased, and its influence on the Chinese market has gradually increased. In April and May, China’s imports from Thailand's PTT company have climbed to the second place, accounting for 19.57% and 24.95% of the total, respectively, and most of them are in the trade area, and are currently one of the main sources of cash flow; Thai Mitsubishi The company's 180,000-ton/year polycarbonate unit was scheduled to be overhauled in July. Thailand's bisphenol A supply may further inflow, which will largely inhibit the spot market.

Demand in the international market continues to shrink, and the internal and external disk upside down crisis is still in effect. Whether the external disk 2000 US dollars (CFR) can stand firm and wait, the bisphenol A market outlook remains difficult to be optimistic. At the same time, domestic companies began to list and sell raw materials phenol and ketones, and the intention to ship in the international market has increased. Adjustments to where the internal and external disks are still need to be verified. In addition, the demand for epoxy resins for major downstream products is unlikely to change significantly. In June, the prices of raw materials such as bisphenol A and epichlorohydrin fluctuate violently, and it is difficult to grasp the direction of downstream operations. Some companies avoid the risk to control the start-up load. At present, the operating rate of solid products is only 30%. The operating rate of products has also dropped to about 60%. The demand highlights in July are hard to come by. With the pressure of financial pressure and sluggish demand dragged down, and business sentiment remains high, the domestic BPA market is still under investigation.