Polybutylene Terephthalate (PBT) prices exhibited mixed trends across major markets in December, driven by region-specific dynamics. In Asia, PBT prices rose slightly, supported by higher feedstock costs and a recovering automotive sector. In contrast, Germany saw a modest decline as demand from the automotive industry remained weak. Meanwhile, prices in the United States held steady, underpinned by balanced supply-demand conditions.

In Germany, PBT prices experienced downward pressure due to persistent weakness in the automotive sector, further exacerbated by declining feedstock costs. The German automotive industry continues to face significant challenges, reflected in a declining Business Climate Index and a sharp drop in domestic electric vehicle (EV) sales. Despite relatively stable supply conditions, the overall economic downturn weighed heavily on PBT market sentiment and contributed to the downward price trend. The automotive sector's struggles, including pricing pressures, market share losses to Chinese competitors, and regulatory hurdles, contributed to the overall negative outlook.

In contrast, the Asian PBT market witnessed price increases, primarily driven by rising feedstock costs and a sustained recovery in the automotive sector. Ample inventories and steady production levels ensured sufficient supply. However, year-end destocking activities and discounted pricing strategies employed by some producers tempered more substantial price gains. The supply of PBT in the Chinese market remained sufficient to meet domestic demand due to improvements in operating conditions. Additionally, the addition of more vessels in late November alleviated some capacity constraints on ocean freight. However, as the countdown to Chinese New Year continued, freight rates remained elevated due to robust demand and ongoing capacity constraints. Carriers implemented blank sailings throughout December to optimize capacity on Asia-Europe routes.

In the United States, PBT prices remained relatively stable during the first half of December, supported by balanced supply and demand dynamics and stable feedstock costs. While November vehicle sales showed modest year-over-year and month-on-month increases, this growth did not translate into significant upward price momentum for PBT. Market participants remained cautious, closely monitoring potential policy shifts under the new administration and their potential impact on trade flows. Despite ongoing logistical challenges at West Coast ports, including equipment shortages and elevated transpacific freight rates, supply remained adequate to meet demand, preventing significant price fluctuations.

As per ChemAnalyst, regional dynamics will continue to shape PBT market trends. Europe faces headwinds from regulatory costs and weak automotive demand, which may suppress price increases in early 2025. In China, elevated freight activity ahead of the Lunar New Year could add temporary constraints, while stronger demand from the automotive sector is expected to lend moderate support. In the U.S., market participants remain cautious about potential trade policy changes, with PBT price movements likely to depend on the broader economic outlook and downstream activity.