After the narrow rise in the domestic PC market last week, the market price of mainstream brands fell by 50-500 yuan/ton. The second phase equipment of Zhejiang Petrochemical Company was suspended. At the beginning of this week, Lihua Yiweiyuan released the cleaning plan for two production lines of PC equipment, which to some extent supported the market mentality. Therefore, the latest price adjustment of domestic PC factories was higher than that of last week, but the range was only about 200 yuan/ton, and some remained stable. On Tuesday, four rounds of bidding in Zhejiang factory ended, lower than 200 yuan/ton last week. From the point of view of the spot market, although most PC factories in China had high prices at the beginning of the week, the range was limited and the support for the market mentality was limited. However, the commodity prices of Zhejiang factories are low, and the raw material bisphenol a continues to fall, which exacerbates the pessimism of the practitioners and makes them just willing to sell.

PC raw material market analysis
Bisphenol A: Last week, the domestic bisphenol A market was weak and fell. In the week, the center of gravity of raw material phenol and acetone rose, the cost value of bisphenol A continued to rise, the gross profit of the industry continued to lose, the pressure on the enterprise cost increased, and the intention to decline weakened. However, the downstream epoxy resin and PC are also in the weak adjustment. The utilization rate of PC capacity is slightly reduced, and the demand for bisphenol A is reduced; Although the epoxy resin has started to be upgraded as a whole, bisphenol A is mainly used to maintain contract consumption and de-stock. The consumption is slow and the demand is unfavorable, which depresses the mentality of operators. However, as the price fell to a low level, a small number of downstream small orders entered the market for inquiry, but the delivery intention was low, and the delivery of new orders in the market was insufficient. Although installed in the west part of the factory.
Aftermarket forecast

Crude oil: It is expected that the international oil price will have room to rise this week, and the improvement of China’s economy and demand will support the oil price.
Bisphenol A: the follow-up of downstream epoxy resin and PC to the spot demand of bisphenol A is still limited, and the market delivery is difficult; This week, the capacity utilization rate of domestic bisphenol A equipment will increase, the market supply is sufficient, and the trend of oversupply still exists. However, the profit loss of BPA industry is serious, and operators pay more attention to the production and sales of major manufacturers. Bisphenol A is expected to fluctuate in a narrow range this week.
Supply side: Zhejiang Petrochemical Phase II equipment restarted this week, and the cleaning of Lihua Yiweiyuan’s two production lines gradually ended. However, other PC plants in China have started relatively steadily, with capacity utilization rising and supply increasing.
Demand side: downstream demand is always limited by the weakness of terminal consumption. Under the expectation of abundant PC supply in the market prospect, most manufacturers are not eager to purchase in the market, mainly waiting to digest inventory.

In general, although there are certain benefits in the PC supply side, the promotion is limited, and the growth of domestic PC factories is lower than expected, and individual or even downward adjustments have affected the market mentality; According to the comprehensive forecast, the domestic PC market is still weak this week.