Polycarbonate is a widely used resin in the electronic/electrical industry across the globe and is now gaining attention across other segments as well.Hence to understand the overall PC market across the North America, Europe and Asia, this report analyses the main drivers of a market.
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Covestro expands sustainable PC films production in ThailandMarch 23, 2023
European PC markets to be highly influenced by high importsFebruary 01, 2023
Demand for PC in Asian markets to remain weak in H1 2023January 05, 2023
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Polycarbonate Industry Benchmarks
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Polycarbonate market frequently asked questions
As per Beroe's analysis, the global capacity of the polycarbonate market stands at 4.95 MMT, while the global demand came around 4.02 MMT.
The global demand of the global polycarbonate market is expected to grow at a rate of 3.4 percent CAGR till 2022 to reach a valuation of $14.83 billion.
As per the polycarbonate market analysis done by Beroe, the major supply markets for polycarbonate include: North America (15 percent) EU (23 percent ) Asia (59 percent ) Others (3 percent )
Following Beroe's report and its insights, it can be said that ' the PC supplier power is the highest in North America, followed by Europe, and Asia has the lowest PC supplier power. On the contrary, the buyer power seems to be lowest in North America while both Europe and Asia fall in the medium category of buyer powers.
As per Beroe, the following five are known to be the global suppliers in the polycarbonate market: Covestro SABIC Teijin Trinseo Mitsubishi
The most preferred engagement model in the polycarbonate model is of direct buying. It's also worth noting that consortium buying isn't a common practice for CPG players.
In the market price contract, the supplier delivers the commodity at the market/benchmark price. However, in a fixed-price contract, the margin of the supplier gets fixed throughout the contract period or a fixed price is locked for the entire contract period. The contracts are generally revised after every quarter.
As per Beroe's analysis, the increasing demand for 'smart' electronics and devices is the primary challenge/opportunity as it will trigger the demand for PC. Again, the presence of different technologies within the medical segment like ' sensors, LED luminaries, etc. too will drive the PC demand.
The price of the polycarbonate is determined based on either of the two parameters: Based on the monomer contract price P (PC) = monthly contract price for feedstock + fixed component + premium Based on the index price P (PC) = Resin price quoted in the index for the month [CMAI/CDI/Platts] +/- margin% Another formula that calculates polycarbonate price is: P (PC) = Resin index price for the month + Conversion cost + Margin
As per Beroe's analysis, producer margin is highest in North America (20 ' 25 percent), followed by Europe (15 ' 18 percent), and is the least in Asia (12 ' 15 percent).
Polycarbonate market report transcript
Global Market Outlook on Polycarbonate
The global demand is expected to grow at 3.4 percent CAGR through 2022–2025
Blends of PC with other polymers, particularly ABS, polyester, and thermoformed PC films are expected to be the demand drivers during the period
Demand Market Outlook
Even though the global PC market is currently oversupplied, the absence of required additions inline with the expected improvement in demand may lead to higher operating rates within the suppliers during the forecast period.
Industry Best Practice : Polycarbonate
Direct buying is the preferred engagement model in the industry
CPG companies outsource its packaging requirements to the converters, as it helps to focus on its core business
Consortium buying is not a common practice for the CPG suppliers in the resin market
Market Price Contract: The supplier supplies the commodity at a market price or benchmark price
Fixed Contract: The margin of a supplier is fixed throughout the contract period or fixed price is locked for the contract period
Contract Revisions: Quarterly contracts are generally preferred in this industry
- Based on Monomer Contract Prices
P (PC) = Monthly contract prices for feedstock + Fixed component + Premium
- Based on Index Prices
P (PC) = Resin prices quoted in the index for the month [CMAI/CDI/Platts] +/- margin%
Producer margins are observed to be the highest in North America (20–25 percent) followed by Europe (15–18 percent) and Asia (12–15 percent)
P (PC) = Resin index prices for the month + Conversion cost + Margins
Global Market Size: PC
The global PC market is forecasted to grow at a CAGR of 3.1 percent over 2022 to 2025 to reach $17.6 billion by 2025
Major drivers, such as applications in automobile, electrical and electronics segment, etc., help in the development
Growth in consumer goods applications is anticipated to remain modest during the period
The COVID-19 pandemic had an impact on the global polycarbonate market in 2020, as the lockdown measures and supply chain disruptions caused a decline in demand. However, the market is expected to recover in 2021 and beyond as the global economy recovers from the pandemic. In 2021, the demand for polycarbonate increased due to the growing demand for lightweight and durable materials in various end-use industries, especially in the automotive and electronics sectors.
Polycarbonate Global Capacity–Demand Analysis
PC demand during the forecast period is projected to witness a CAGR of 3.4 percent, owing to growth in electronics, packaging, and medical applications
The global PC market had a total capacity of 6.58 MMT as of 2021.
There has been a high-capacity rationalization of PC in the US and Europe in the past, which had created some deficit in production, especially in Europe
Recently, China witnessed PC capacity addition of 0.10 MMT.
Capacity additions planned in Asia during FY 2020 are pushed to FY 2021. Capacities of about 0.93MMT is expected to have come online during 2021
European and Asian buyers are recommended to engage in contractual buying.
For imported materials, the buyers may look for imports from the US, South Korea, and Saudi Arabia, as these regions are likely to remain as a net exporter during the forecast period
Cost Structure Analysis : Polycarbonate
Feedstock phenol is the major cost driver in the prices of PC. Any price change in Phenol will have a major impact on the prices of PC.
North America continues to have cost advantage on raw material front
Utility cost includes electricity, steam, water, and fuel/gas. Among these, electricity is the main utility that accounts for most of the cost incurred
Utilities and labor costs were observed to be low across all the geographies
Why You Should Buy This Report
The polycarbonate market research report gives the cost structure breakdown, polycarbonate price trends and forecast analysis. It gives the regional capacity share by suppliers and does a SWOT analysis of major players like Covestro, Sabic IP, Trinseo, etc. It details the polycarbonate industry drivers, constraints and technological innovations.
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