After experiencing a series of challenges in 2007, the bisphenol A (BPA) market in China saw its price drop below 16,000 yuan per ton. Despite rising global oil prices and increasing costs for raw materials like phenolic ketone, BPA prices failed to recover to a more reasonable level. Although there was still a significant increase compared to the 11,000 yuan/ton level seen at the start of 2006, the overall performance remained unsatisfactory due to higher input costs. Looking ahead, the domestic BPA industry is facing multiple constraints, and it’s clear that coordinated efforts from all stakeholders are needed to break through the current bottlenecks.
Bisphenol A is an essential derivative of phenol, primarily used in the production of epoxy resins and polycarbonates. Internationally, polycarbonate usage is slightly higher, but in China, the main application remains epoxy resins. There are four major BPA production facilities in China, with an output of around 720,000 tons in 2007. The country imported approximately 460,000 tons of BPA that year, with about 400,000 tons used for epoxy resin production.
Among the four domestic manufacturers, Tianjin Shuangfu has been idle for a long time, while Jianye Chemical Co., Ltd. has yet to start operations. The primary suppliers are Bayer Shanghai and Wuxi Resin, both of which have downstream facilities for polycarbonate and epoxy resins, some of which are self-sustaining. This supply structure limits the influence of local manufacturers. Experts suggest that the market's understanding of production costs is insufficient, leading to weaker stability and more external interference. Any sign of trouble can quickly trigger market volatility.
Meanwhile, new players are entering the BPA market, creating fierce competition. By 2006, China had become the world’s largest producer and consumer of epoxy resins, with output reaching 700,000 tons in the previous year—a 35% increase. For every ton of epoxy resin produced, approximately 750 kg of BPA is required, highlighting a large market potential. BPA’s long storage life, ease of transport, and low operational threshold have attracted many new businesses to enter the sector.
However, some of these "new generation" traders lack a deep understanding of the BPA industry and aim for quick profits, which negatively impacts market stability. First, it becomes difficult for mainstream traders to maintain control or lead the market. Second, during bullish periods, they tend to follow the trend, but when the market turns bearish, they flood the market with cheap products, causing a sharp decline. Third, their short-term mindset and lack of long-term vision make it hard for them to support the industry’s sustainable growth. Speculation and lack of responsibility have caused serious damage to the market.
Another factor contributing to BPA price fluctuations is the limited range of applications. Most domestic BPA is used in epoxy resin production, while demand for polycarbonate has not yet significantly increased. This over-reliance on a single application makes the market vulnerable and hinders price stability.
In recent years, the domestic epoxy resin industry has grown rapidly. However, the two key raw materials—epichlorohydrin and BPA—have shown contrasting trends. While domestic epichlorohydrin production is oversupplied and manufacturers hold strong pricing power, BPA faces downward pressure. This has created a price-reversal dynamic: when epichlorohydrin prices rise, BPA prices often fall or stagnate. As a result, any upward movement in BPA prices is frequently offset by the rise in epichlorohydrin.
From the perspective of the downstream epoxy resin industry, approximately 150,000 tons/year of new capacity came online at the end of 2007. Total domestic production capacity now exceeds 1 million tons/year, and there is still room for growth in BPA demand. Additionally, new polycarbonate capacity emerged in Asia during this period. Facing this evolving landscape, the BPA industry needs to implement multiple strategies to overcome existing challenges. Key measures include improving market concentration, expanding application areas, and increasing domestic supply. With greater supply control, the industry can achieve healthy and sustainable growth through diversified consumption.
Fiber Braided Hydraulic Hose,Hydraulic Braided Hose,Braided Hydraulic Lines,Double Wire Braided Hydraulic Hose
Hebei no one but god energy equipment co.,ltd , https://www.p-harcourtbrothers.com