The BPA market has experienced significant price fluctuations from January to May 2024, with prices ranging between CNY 9,150 - 10,000/ton. The volatility rate stood at 8.88%, continuing a downward trend since 2020. With supply outstripping demand, this trend is expected to persist.

Key factors driving the BPA price decline include:

• Increased Domestic Supply: The growth in domestic BPA production has outpaced demand, leading to an oversupply.

• New Capacities: Since Q3 2023, new capacities have come online, intensifying price competition, particularly from newly produced resources priced relatively lower.

• Economic Recovery: The economic recovery in Q1 2024 was slower than anticipated, coupled with supply-demand imbalances, resulting in a generally weak market sentiment.

  
  

In the first half of 2024, two new enterprises commenced operations, adding 600,000 tons/year to the total capacity, which now stands at 5.475 million tons—a 12.31% increase from the previous year-end.

Despite the increased domestic supply, the BPA production is projected to exceed 2 million tons in the first half of the year, nearly a 19% year-over-year increase. However, the demand growth lags behind supply, leading to fierce price competition and sustained cost pressures. Consequently, the industry faced an average loss of CNY -842/ton from January to May.

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