During the first half of March 2025, the global Polybutylene Terephthalate (PBT) market experienced a divergent trend driven by varying cost pressures, demand conditions, and economic factors. German PBT market remain volatile due to fluctuating production cost and weak industrial demand, whereas balanced supply demand situation kept US market stable amid macroeconomic risks. Despite some indications of recovery in key end-use industries, the overall market outlook remained uncertain, with price movements largely dependent on cost absorption capacity and external economic conditions.

In Germany, the prices of PBT began declining 1.1% against a lacklustre demand from the downstream automobile sector where falling new car registrations and production reductions played a significant role.

On the supply side, stable production levels supported by lower feedstock PTA cost ensured sufficient inventory levels but failed to offset demand slump. However, PBT prices rebounded by 1% later in the month because of rising feedstock prices, particularly PTA and natural gas, which forced producers to raise prices.

Despite this, industrial activity remained weak because of persistently elevated borrowing costs that were continuing to stifle PBT consumption in key downstream sectors. The tentative recovery in automotive sentiment and export expectations offered a glimmer of hope, but sustained price increases hinge on buyers’ willingness to absorb higher costs in a still-weak market.

Meanwhile, the U.S. PBT market remained stable in the first half of March with prices supported by balanced supply and stable demand. Local manufacturing was supported by stable raw material prices and inventory management. The automotive sector’s improved performance provided demand-side stability, though weakening export orders and macroeconomic concerns—including fears of stagflation and recession risks under Trump-era policies—kept buyers cautious.

Supply chain concerns were reduced by the proposed levies' interim suspension, which avoided any problems right away.  There was little opportunity for PBT's price to move significantly either way, though, as market euphoria was dampened by broader trade policy uncertainty and waning consumer confidence.

According to ChemAnalyst, in the near future, the trend of PBT prices in both nations will be influenced by the equilibrium between cost pressure, revival of industrial demand, and general economic conditions. For Germany, whether recent price increases can be maintained is doubtful as raised costs are not sufficient to drive sustained uptrend without strong demand support.

On the other hand, as long as market participants practice disciplined restraint, the US PBT market is anticipated to remain stable in spite of persistent economic headwinds.  This methodical approach by suppliers and buyers manages downside risk and acts as a buffer against large price swings.