SABIC issued a PC price increase letter on March 13 and issued a price increase letter on March 16th. It announced that since April 16 PC prices have increased by US$300 per ton.
SABIC’s frequent price increase news brought some hope for the weak market conditions. Some of the downstream factory inquiries increased slightly from the previous period, but it should be noted that the price increase is LEXAN series, while the mainstream brands such as 1000R and It is not within the series. That is to say, the market is only affected by news, and the late price is not necessarily the expected increase. With the recent weak market, traders have few intentions for the increase in the price of the ex-factory price.
From the above figure, we can see that since the beginning of 2018, the domestic PC has started the path of decline, and the reason is mainly due to supply and demand factors.
The significant increase in PC in 2017 was due in large part to the shortage of supply in the market. Once the situation of supply was in short supply, traders and merchants were reluctant to sell, and their offer prices rose. Since the beginning of 2018, downstream factories have been under pressure from the cost side. After the Spring Festival, new orders for downstream plants are limited, mainly consuming early-stage stocks. In addition, the market is pessimistic. There are also many investors in the downstream who do not buy or buy. The bulk purchase intentions are weak, and the market has many inquiries and small successes. Single, further aggravate market supply and demand conflicts.
The market demand side weakened, and the supply side changed signs of early tensions and supply resumed normal.
In the first quarter, there was no maintenance plan for the enterprise installations, and the time for repair of some installations was also delayed. In addition, the import volume increased significantly year-on-year, which also led to an increase in supply than expected.
Most companies’ offerings remain high, and the market is affected by the continued weakness of some companies. The phenomenon of upside down in bidding is becoming more obvious. If downstream demand is followed up, PC prices are bound to stop falling, but in the short term, the market is in conflict with supply and demand. Under the constraints, the domestic PC market will remain in a weak trend.