The global polycarbonate market showed a firm performance during the first quarter of 2026 as prices continued to move upward across many major regions. Compared to the previous quarter, average prices increased by around 4.5%, supported mainly by supply limitations and higher production costs. While demand remained moderate in several markets, the shortage of available material and increasing raw material expenses encouraged suppliers to gradually raise their selling prices throughout the quarter.
One of the biggest factors influencing the market was the uncertainty in global trade. Ongoing geopolitical tensions in the Middle East created disruptions in important shipping routes, affecting the movement of petrochemical products and raw materials. These transportation issues reduced the availability of aromatic chemicals used in manufacturing Bisphenol A (BPA), one of the key feedstocks required for polycarbonate production. As BPA became more expensive, manufacturers experienced higher production costs, which eventually pushed finished product prices higher.
At the same time, supply remained tight because several major manufacturing facilities operated at lower production rates or temporarily reduced output. Some producers also experienced plant shutdowns and maintenance activities that limited the availability of material in the spot market. With fewer cargoes available and export offers becoming stronger, buyers had limited options, which further supported higher prices across global markets.
Although downstream demand from industries such as electronics, automotive, packaging, and consumer products was not exceptionally strong, buyers continued purchasing material to maintain production schedules. Since replacement costs were rising steadily, many companies preferred securing inventories before prices increased further. This cautious but consistent buying activity helped maintain positive market momentum during the quarter.
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South Korea remained one of the key export markets influencing global price movements. During Q1 2026, the country's polycarbonate market recorded an increase of approximately 4.5% compared with the previous quarter. Rising BPA production costs, tighter feedstock availability, and reduced operating rates at major producers all contributed to the upward movement. Several manufacturing facilities experienced operational disruptions, while government measures affecting naphtha exports also tightened domestic supply. By March 2026, export prices had increased by nearly 16% compared with February, reflecting stronger export demand and limited product availability.
China also witnessed firm market conditions during the first quarter. Since the country imports significant quantities of polycarbonate from South Korea, higher export offers directly influenced domestic import prices. Increased production costs for BPA and reduced export availability from South Korean suppliers kept landed costs elevated. Although demand from downstream industries remained moderate, buyers continued purchasing because supply remained limited. During March 2026, prices in China increased by around 16% over the previous month, reflecting continued cost pressure and restricted supply across the regional market.
India experienced one of the strongest market performances during Q1 2026. Domestic prices increased by approximately 19% over the previous quarter as limited material availability and higher import prices created strong upward pressure. Import offers from South Korea remained firm throughout the period, increasing replacement costs for Indian traders and manufacturers. As a result, suppliers revised their domestic offers several times during the quarter. The Polycarbonate Price Trend in India remained strongly positive because restricted imports and limited spot availability outweighed moderate buying activity. In March 2026 alone, prices increased by more than 40% compared with February, reflecting one of the sharpest monthly gains among major global markets.
Indonesia also recorded higher prices during the quarter due to its dependence on imported material from South Korea. Rising FOB export prices, increasing BPA costs, and reduced production rates at Korean manufacturing plants all contributed to higher import costs. Demand from packaging and electronics industries remained stable, but limited supply continued to support price increases. During March 2026, import prices rose by approximately 16% compared with the previous month as regional supply constraints became more severe.
Mexico followed a similar pattern throughout the first quarter. Import prices increased by approximately 3.4% over the previous quarter, mainly because of higher export quotations from South Korea and increasing production costs. Although demand from the automotive and electronics sectors remained moderate, buyers faced higher landed costs due to rising freight expenses and tighter global supply. By March 2026, prices had increased by around 21% compared with February, highlighting the continued impact of supply-side challenges on the North American import market.
Across the global market, the main driver of higher prices was not exceptionally strong consumption but rather the shortage of available supply. Production interruptions, reduced operating rates, feedstock shortages, and shipping disruptions all combined to limit material availability. Even where demand remained steady instead of rapidly growing, buyers were willing to accept higher prices because alternative sources were limited.
Higher crude oil prices also contributed indirectly to the market. Since many petrochemical feedstocks depend on crude oil and related products, increases in energy prices added further pressure to manufacturing costs. Transportation expenses also increased because of longer shipping routes and higher freight rates, making imported material more expensive across many regions.
Looking ahead, the market is expected to remain firm if supply limitations continue and geopolitical uncertainties persist. Manufacturers will continue monitoring BPA availability, crude oil movements, and international shipping conditions because these factors are likely to influence future pricing. If production improves and global logistics stabilize, price growth could become more moderate. However, continued supply disruptions may keep the market under upward pressure during the coming months.
Overall, the first quarter of 2026 reflected a positive global market supported primarily by limited supply, higher feedstock costs, and ongoing logistics challenges. While demand varied between regions, supply constraints remained the dominant factor behind rising Polycarbonate Prices, helping maintain a firm pricing environment across major producing and importing countries.
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