After experiencing a series of shocks in 2007, the bisphenol A (BPA) market in China saw its price drop below 16,000 yuan per ton. Despite rising international oil prices and increasing costs for raw materials like phenolic ketone, BPA prices failed to return to a more reasonable range. Although the price has significantly increased compared to the low of less than 11,000 yuan per ton at the start of 2006, it remains unsatisfactory from a cost-benefit perspective due to higher input costs. Looking ahead, the domestic BPA industry is facing multiple challenges, and collaborative efforts among various stakeholders are urgently needed to overcome these bottlenecks.
Bisphenol A is an essential derivative of phenol, primarily used in the production of epoxy resins and polycarbonate. Internationally, polycarbonate use is slightly higher, but in China, the majority of BPA is directed toward epoxy resin manufacturing. There are four 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 major domestic BPA manufacturers, Tianjin Shuangfu has been offline for a long time, while Jianye Chemical Co., Ltd. has yet to start operations. Most supply comes from Bayer Shanghai and Wuxi Resin, which have downstream polycarbonate and epoxy resin facilities and some self-sufficiency. This supply structure limits the influence of local manufacturers. Industry experts note that the market's recognition of production costs appears insufficient, leading to weaker stability and greater vulnerability to external factors. Any sign of instability can trigger sharp market fluctuations.
Meanwhile, new players are entering the BPA market, intensifying competition. China became the world’s largest producer and consumer of epoxy resins as early as 2006, with output reaching 700,000 tons in 2007—an increase of 35%. Each ton of epoxy resin requires about 750 kg of BPA, indicating strong market potential. BPA's long shelf life, ease of transportation, and low operational barriers have attracted many new businesses.
However, some of these "new generation" traders lack deep understanding of the BPA industry and aim for quick profits, which negatively impacts market stability. First, market coordination becomes difficult, making it hard for established players to lead. Second, during bullish periods, they follow the trend, but when prices fall, they flood the market with cheap products, causing overall price declines. Third, their short-term mindset and lack of long-term vision hinder the industry’s sustainable development. Speculation and short-term gains have caused serious damage to the market.
Another factor contributing to BPA price volatility is the limited application areas. Most domestic BPA is used in epoxy resin production, while demand for polycarbonate-related materials has not yet grown significantly. This over-reliance on one sector makes the BPA market vulnerable and hampers price stability.
In recent years, the epoxy resin industry has expanded rapidly. However, the two main raw materials—epichlorohydrin and BPA—have seen contrasting trends. While epichlorohydrin faces oversupply, domestic producers maintain control and have largely pushed out imports. They often manage prices through capacity adjustments. This dynamic has created a price-reversal relationship: when epichlorohydrin prices rise, BPA prices tend to fall or stagnate. As a result, BPA’s upward potential is often constrained by epichlorohydrin.
Looking at the downstream epoxy resin industry, about 150,000 tons/year of new capacity was added by the end of 2007, bringing total domestic production capacity above 1 million tons/year. There is still room for growth in BPA demand. Additionally, new polycarbonate production capacity emerged in Asia around the same period.
Currently, the BPA industry faces a new landscape, but overcoming existing challenges will require comprehensive measures. Key strategies include enhancing market concentration, expanding application fields, and gradually increasing domestic supply. With improved supply control, the industry can achieve healthy and sustainable growth through diversified consumption.
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