Daily Review of BPA: Cautious Attitude

[China Epoxy Network (China Epoxy Industry Online) www.
epoxy-e.
cn] May 17, 2010: The domestic BPA market is cautious and trading is limited.
On the last trading day (May 14), the mainstream transaction price in the mainstream market in East China remained in the range of 16,200-16,400 yuan/ton.
According to the analysis of market experts from the China Epoxy Industry Association (www.
epoxy-e.
cn), the market’s trading volume and price contracted on that day, and the mentality was cautious.
Most of the downstream left the market and consumed inventory.
Weekends were mainly wait-and-see, and the pattern of weak shocks was difficult.
There have been improvements.
High inventories are suppressed and international crude oil futures continue to fall-below $75/barrel, the chemical market mentality is difficult to boost in the short-term; individual domestic manufacturers have raised their quotations, but there is no obvious response to the market situation.
In the face of unexpected price increases, The mentality of trading merchants has improved slightly.
Some low-priced sources are still on sale.
Buyers are not interested in receiving goods and trading is flat.
It is expected that the market will still fluctuate.
Wait and see the overall dynamics of manufacturers and the mentality of merchants.
In short, manufacturers occasionally raised their quotations slightly, and market participants' mentality was slightly relieved.
However, the impact on market prices was limited.
International crude oil continued to decline, domestic pure benzene lowered its quotations again, and external negative factors suppressed.
, The domestic bisphenol A market is sorted out in a narrow range, waiting and watching the attitude of the merchants and the downstream follow-up situation.
Domestic bisphenol A manufacturers' quotations have been slightly adjusted and their mentality seems to have changed.
Existing devices have been operating stably, and new devices have not yet been released.
Recently, raw materials have been sorted out, and the focus of the market has fallen.
The support for cost factors has weakened and shipment intentions have increased.
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    On the last trading day (May 14), the BPA market atmosphere was dull and the mentality was not good.
The downstream people mostly wait and see, and the purchase intention is not large.
The mainstream reference negotiation range has moved down.
At present, the space for internal and external disk upside-down is widening, and the market is exploring the bottom of the industry.
The expectation is slightly obvious, and pay close attention to market trends; as the spot market continues to weaken and the external market is also in a stalemate, downstream passive purchases have aggravated the merchants’ low profit cashing intentions; US crude oil futures continue to fall, and the raw material pure benzene and phenol ketone series have declined.
Continuously, the short-term lack of bisphenol A is obviously positive, and the market continues within a narrow range.
The market mentality is further divergent.
Some merchants panic low selling, lower prices, some firm sales sources are lower, and the downstream is more on the sidelines.
The resistance level of 16,000 yuan/ton needs attention.
Raw material pure benzene weakened internally and externally, lack of rigid demand in East China, further decline in trading, weak short-term fundamentals, and a bearish outlook; the spot market for phenolketones was downcast, negotiated prices in East China were lower, and manufacturers began to lower the price.
Constantly emerging, follow-up further attention.
At present, the price of bisphenol A in the external disk is stalemate, the spot mentality is unstable, and the resistance level of 16,000 yuan/ton is approaching.
According to market experts from China Epoxy Industry Association (www.
epoxy-e.
cn), the mainstream quotation in East China is 16,500-16,600 yuan/ton, the mainstream transaction price is 16,200-16,400 yuan/ton; the mainstream quotation in Huangshan is 16,600～ 16,700 yuan/ton, the mainstream transaction price is 16300-16500 yuan/ton; the mainstream quotation in North China is 16500-16700 yuan/ton, the mainstream transaction price is 16300-16400 yuan/ton; the mainstream quotation in South China is 17000-17100 yuan/ton, the mainstream transaction price 16700～16900 yuan/ton.

    The recent high stalemate in the external disk market of bisphenol A.
With the weakening of the spot market and the increasing bearish atmosphere in the commodity market environment, the market’s attention to external disk trends has increased, and import merchants and downstream terminals have been cautious; although the supply of cargo is not sufficient, including intermediate merchants Most of the orders are above US$1950/ton (CFR China's main port), but they are not attractive to buyers, and a small number of buying intentions have shown a downward trend.
The hidden worries of the European debt crisis linger, the international crude oil market is weak and volatile, the internal and external markets of pure benzene have fallen, and the price gap with bisphenol A has further widened-up to 980 US dollars / ton, and the high risk awareness of the market has increased.
According to market experts from the China Epoxy Industry Association (www.
epoxy-e.
cn), the European contract price of bisphenol A in May was between 1,700 and 1,800 euros per ton (Northwestern Europe).
Due to the tight supply of local raw material phenol, it continued to The production of bisphenol A has been suppressed and the overall start-up load is not high.
It is reported that supported by strong downstream demand, part of the supply of bisphenol A is imported from Asia.
The bisphenol A external disk market was in a high stalemate in the early stage.
The regional market supplier offered an offer at US$1970-2000/ton (CFR China's main port), and some high-end ocean-going cargoes were slightly higher than US$20-30/ton.
The European debt crisis spreads worries.
Impact, the stock market and bulk commodities are consolidating downward, and the BPA spot has entered a weak consolidation channel.
Short-term external markets are not very attractive to importers, and some are more willing to cover their positions at low prices; BPA prices in Southeast Asia are firm, and major suppliers are bidding by 2050.
US$/ton, a small amount of buying intention is slightly lower by US$50/ton (CFR Southeast Asia), and the volume of foreign disk market transactions has decreased recently.

(Our reporter Wu Xi)

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