Global PBT Market Adopts Cautious Approach Amid Soft Demand in November 2023

The Polybutylene Terephthalate (PBT) prices followed a relatively stable trajectory, influenced by a slowed momentum of demand in the downstream automotive and electrical industry and a reduced production rates situation that has been limiting price movements in the PBT industry globally in November 2023. Recent insights indicated that regional consumers scaled back purchasing and manufacturing production activities, which has added challenges for the PBT market. Consequently, these market difficulties have delayed the price momentum of the commodity in November 2023. The global PBT market dynamics highlighted the dominance of excess supplies surpassing demand in the downstream sectors. Despite the oversupply, some traders remain optimistic and opted to sustain their margins by reducing the production run rates in the line of international offtakes.

Toward the conclusion of November 2023, the Chinese PBT market continued its downward trajectory, along with a decrease in spot prices across Asian countries. Market participants in the PBT sector have maintained their initial operational stage, resulting in high supply pressure. On the demand front, consumption remains subdued, with merchants often holding a pessimistic outlook for future market demand. Furthermore, the price stability in the week ending November 24, 2023, imposed by the high input cost pressure and reduced production rates across the regional market, is in line with unchanged demand fundamentals.

In the European and US markets, the PBT prices continued stagnancy in the week ending November 24, 2023, due to high input costs and unchanged demand. The continual elevation of input costs has subdued production rates throughout the entire month. The reduced costs of feedstock, particularly PTA (Terephthalic Acid), and stagnant BDO (Butanediol) prices have additionally played a role in the current trend of PBT prices, prompting producers to consider short-term measures for the sustainability of margins. Additionally, new orders in the Eurozone declined in November 2023 amidst a fall in business activities and a lowered rate of manufacturing activities in the downstream sectors of the European economy.

According to ChemAnalyst, a slight increase in the PBT prices is anticipated globally, in the line of uncertainties in the downstream automotive industry and decreased inventory procurement. The analysis indicates elevated stock volumes, prompting market participants to adopt a traditionally cautious approach. A rebound in the PBT downstream sector is unlikely during the initial quarter of 2024. Furthermore, price fluctuations in upstream PTA and BDO are expected to impact the PBT price momentum in the upcoming weeks, along with anticipated volatility in crude oil futures prices.