In February 2025, polybutylene terephthalate (PBT) prices exhibited mixed regional trends. German and American markets remained stable but were highly volatile in China based on cost and seasonal factors. Feedstock factors, energy prices, and downstream demand all influenced each other to drive pricing scenarios across the world, with a focus on differences in market sentiment and economic health at key locations.

In China, PBT prices began February in subdued fashion with the Lunar New Year holiday suppressing industrial activity and resulting in a fleeting reduction in demand. A mid-month recovery did, however, occur as manufacturers got back to work and feedstock prices, including purified terephthalic acid (PTA), rose. A rebound in market activity following the holiday introduced this upside adjustment, though producers were most concerned about replenishing inventories rather than fresh orders.

However, by the end of the month, prices retreated slightly as PTA costs eased and downstream sectors, including automotive, displayed muted procurement interest. Carmakers were conservative, prioritizing existing stockpiles rather than expanding orders amid a slower-than-expected post-festival recovery, mirroring overall caution in a shifting PBT market.

Whereas in European region, PBT prices were firm in February, reflecting a balance between supply and demand across Europe. Although PTA prices were high, lower natural gas prices offset the impact on production costs. Supply stability was further reinforced by continuous operations and consistent raw material availability.

Nevertheless, on the demand front, the automobile industry showed guarded buying behaviour with customers following need basis procurement plans in the midst of persistent economic uncertainty. Such a conservative approach, combined with adequate inventory balances, avoided PBT price fluctuations in spite of conflicting cost pressures.

Similarly, constant production levels and firm feedstock PTA prices allowed the U.S. PBT market to follow Germany's stability. However, downstream procurement of PBT remained sluggish as purchasers lowered their commitments to inventory due to growing economic concerns. Demand-side pessimism was exacerbated, particularly in the industrial and automotive markets, by a sharp decline in the Consumer Sentiment Index and rising long-term inflation forecasts. Despite lower order quantities, producers-maintained supply chain operations by remaining steady during the windfalls.

The PBT market is expected to remain relatively stable in the near future, depending on sector-specific trends and regional economic conditions. Energy cost stability and a cautious auto industry could keep stable prices in Germany.  In case of U.S. more economic downturns could reduce demand; therefore, the direction of the market will probably depend on inflation and consumer confidence. It is anticipated that feedstock price volatility and post-holiday market normalization will affect PBT prices in China.