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PC Prices Hit the Lowest Point in 2019

SCI99

2019-11-21

PC Prices Hit the Lowest Point in 2019

In 2019, China’s PC capacity increased quickly, and the global economy slowed down. The supply and demand imbalance was poignant, and China’s PC market decreased to the lowest level in Q4, 2019.

In Q1, 2019, China’s PC prices were stable-to-rising. After the Spring Festival holiday, players mainly held wait-and-see sentiment to the market. Supported by the increasing PC USD prices, China’s PC market mainly moved sideways. After the Spring Festival holiday, Zhetie Daphoon would took scheduled maintenance, and the operating rate at LUXI Chemical ran at low loads. Up to March, the demand for PC was low, and the PC prices started to decrease sharply in mid-March. In Q1, 2019, China’s PC prices decreased by 1.0%-3.1%.

In Q2, 2019, China’s PC market was amid an obvious bearish atmosphere. The demand for BPA was insufficient, and the BPA market continued decreasing, failing to support the PC market. In Q2, 2019, there was few units’ maintenance. On the one hand, the Sino-U.S. trade war escalated, weighing down the market sentiment. On the other hand, units at Zhonglan Guosu New Material began to produce products, and goods became more and more diversified. In May, the gross profits of PC were negative. In June, the PC market continued the sluggish atmosphere, and trading atmosphere improved. On June 18, after a phone call between the president Xi Jinping and the U.S. president Trump, market players held increasing positive wait-and-see sentiment to the market. In Q2, 2019, China’s PC prices decreased by 10.3%-11.6%.

In Q3, 2019, there were many bullish factors in the market, and the PC market increased greatly. The supply was tight due to the adjustment of the operating rate in Q2. Market players held positive wait-and-see sentiment. At the beginning of Q3, the prices at China’s PC producers increased gradually influenced by the low inventory and mild PC market atmosphere. In August, units at LUXI Chemical were shut down for maintenance for one month. Traders stocked up gradually. Therefore, PC market was gradually amid a bullish atmosphere. Entering September, the BPA prices increased quickly, and the oil facilities in Saudi Arabia were attacked. Thus, the oil prices surged, pushing up the commodity market as well. After that, it was hard to increase the BPA prices further, and the trading atmosphere was insipid. The PC market prices decreased in H2 September. In Q3, 2019, China’s PC prices increased by 4.6%-15.7%.

In Q4, 2019, players held cautious wait-and-see sentiment. After the National Day holiday, the PC prices first moved sideways temporarily and then decreased. In October, newly added units at home and abroad were put into operation gradually. In November, the demand for PC slowed down, and players held sluggish sentiment to the market.

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