For the Quarter Ending September 2024
North America
In Q3 2024, Polybutylene Adipate Terephthalate (PBAT) prices in the North America region experienced a significant decline, influenced by several key factors. Market conditions were primarily shaped by a seasonal slowdown in demand from various industries, leading to reduced consumption of PBAT.
Additionally, an oversupply situation emerged due to increased domestic production efficiency and inventory adjustments by producers and distributors. Stable prices of essential raw materials, mainly Butanediol, Purified Terephthalic Acid and Adipic Acid further contributed to lowering production costs, allowing for price adjustments downwards. The USA witnessed the most substantial price changes within the region.
The overall trend in the USA market reflected a consistent decrease in PBAT prices. Notably, the quarter recorded a 2% decrease from the previous quarter in 2024, with a more significant price disparity between the first and second halves, noted at -7%. The latest quarter-ending price for PBAT in the USA stood at USD 1670/MT CFR Los Angeles, signaling a negative pricing environment characterized by declining prices.
APAC
The Q3 2024 PBAT market in the APAC region exhibited a varied pricing environment. In the first half of the quarter, the Polybutylene Adipate Terephthalate (PBAT) market maintained stable prices, supported by a balance between demand and supply, alongside consistent raw material costs. However, during the second half of Q3, PBAT prices in China declined due to several factors. A seasonal slowdown in demand from downstream industries, particularly sustainable packaging, contributed to this decrease, while the weakening Chinese economy saw new manufacturing orders decline at the fastest rate in two years, further impacting PBAT demand. Increased domestic production from improved plant efficiency and new capacities created a market surplus, exerting downward pressure on prices. Despite these challenges, a slight decline of 4% from the previous quarter indicated a minor adjustment in pricing. Notably, China experienced the most significant price changes, influenced by seasonal shifts, production capacities, and import-export dynamics. Overall, the quarter maintained a stable pricing trend, with no significant fluctuations observed between the first and second halves. The quarter-ending price stood at USD 1,470/MT for PBAT, FOB Qingdao, reflecting the overall hybrid pricing environment.
Europe
The fluctuating pricing dynamics was observed in the Q3 for PBAT in the European region. During the first half of Q3 2024, PBAT prices in Germany remained stable. Steady downstream demand from the sustainable packaging sector, along with balanced consumption from agriculture, textiles, and consumer goods, prevented significant price fluctuations. Consistent domestic production matched demand, and effective inventory management helped maintain market stability. Although some raw material prices fluctuated, overall production costs remained controlled, supporting stable pricing amid broader European economic challenges, including ongoing issues with recycling targets, which highlighted the market's resilience. In the second half of Q3 2024, PBAT prices in Germany declined. This drop was driven by a seasonal slowdown in demand from downstream industries and a slight economic downturn, exacerbated by increased domestic production that created a market surplus. Inventory adjustments by producers further contributed to the oversupply, while falling feedstock prices for adipic acid and PTA reduced production costs. Despite a temporary boost from the Olympic Games, underlying demand remained weak, and Eurozone inflation dropped. Ongoing port congestion and shipping disruptions added to the challenges, impacting market stability. Overall, the quarter maintained a volatile pricing trend, with a slight incline of 1% as compared to the previous quarter, along with a -5% fluctuation observed between the first and second halves. The quarter-ending price of USD 1,920/MT for PBAT, FOB Hamburg, reflects this mixed pricing environment.
For the Quarter Ending June 2024
North America
In Q2 2024, the Polybutylene Adipate Terephthalate (PBAT) market in North America exhibited mixed trends. During the first half of the quarter, PBAT prices in the USA remained stable, reflecting balanced market conditions. Demand from downstream industries such as packaging and textiles was steady, while the agricultural sector saw moderate demand due to seasonal factors. Domestic production levels were consistent, meeting demand without significant supply shortages. Imports from China and Europe also remained steady, helping to maintain sufficient supply. Despite a 5% increase in freight charges on the China to North America route, there was no notable impact on PBAT prices. Stable raw material costs and a slight easing in inflation further supported price stability during this period.
Towards the end of Q2, there was a marked increase in prices, driven primarily by robust demand and supply-side constraints. Significant factors influencing this bullish trend included heightened environmental awareness, leading to increased demand for bioplastics in packaging and automotive sectors. The region's restricted domestic production capacity, coupled with ongoing global supply chain disruptions, exacerbated the supply-demand imbalance. Elevated freight charges, stemming from logistical hurdles such as port congestion and rerouting due to canal restrictions, further propelled prices upward.
The USA market saw the most pronounced price changes. The quarter was characterized by strong seasonal demand, particularly in agricultural and food packaging applications, which typically peak during warmer months. Quarter-on-quarter, prices rose by 3%, underscoring the current upward momentum. The latest quarter-ending price stood at USD 1891/MT, CFR Los Angeles, reflecting a mixed pricing environment fueled by strong demand and constrained supply.
Overall, Q2 2024 for the PBAT market in North America demonstrated a mixed trend. While the first half of the quarter saw stable prices supported by balanced market conditions and consistent supply, the latter half experienced price increases driven by robust demand, supply-side constraints, and elevated freight charges. The USA's reliance on imports and the willingness of downstream industries to absorb higher costs for bio-based materials intensified upward pressure, sustaining the bullish sentiment through the end of the quarter.
APAC
During Q2 2024, the Polybutylene Adipate Terephthalate (PBAT) market in the APAC region experienced a consistent downward pricing trend, influenced by a constellation of factors. The quarter saw considerable price decreases primarily due to an oversupply in the market, driven by increased production capacities that outpaced demand growth. Additionally, stable raw material costs, particularly for adipic acid and butanediol, allowed producers to lower their selling prices. Seasonal demand fluctuations also played a crucial role; the off-peak demand periods in key industries such as agriculture and packaging contributed to downward price pressures. Moreover, fluctuating global economic conditions and subdued consumer demand across downstream sectors further exacerbated the declining price environment.
Focusing on China, which experienced the most significant price changes, the overall market sentiment was decidedly negative. The country saw a stark contrast to the 1% increase noted in the previous quarter of 2024. Seasonality and overproduction led to a -3% price drop between the first and second halves of the quarter. These trends reveal a strong correlation between the supply glut and reduced seasonal demand, which collectively pressured prices downward. The latest quarter-ending price stood at USD 1564/MT FOB Qingdao in China, reflecting the ongoing bearish market conditions. This quarter has clearly underscored a negative pricing environment for PBAT, driven by an overabundance of supply and tepid demand growth.
Europe
In Q2 2024, the European Polybutylene Adipate Terephthalate (PBAT) market witnessed fluctuating pricing trend with a notable increase in prices initially, driven predominantly by amplified demand from downstream sectors such as automotive, electronics, and sustainable packaging industries. This surge in demand, coupled with limited production capacity and logistical challenges, created substantial supply constraints. Additionally, regulatory shifts aligned with the European Green Deal, promoting the circular economy and sustainable packaging, further amplified demand pressures. Fluctuations in raw material costs, particularly a significant increase in 1.4-Butanediol (BDO) prices, contributed to heightened production expenses, thus elevating overall PBAT prices.
However, towards the end of Q2, PBAT prices showed a declining trend, decreasing by 3%. In Germany, PBAT prices declined due to a lull in demand from downstream industries, especially bioplastics. Seasonal production cycles and prior inventory fulfillment contributed to this drop in fresh demand. Increased domestic PBAT production and higher imports led to a temporary surplus, putting downward pressure on prices. Additionally, a 7% decrease in the price of 1,4-Butanediol (BDO) reduced production costs, allowing German manufacturers to offer more competitive PBAT prices.
Focusing exclusively on Germany, the market experienced significant price increases at the start of the quarter, with a declining trend later, reflecting broader European trends. In Q2 2024, PBAT prices in Germany surged by 11% from the previous quarter. The quarter ended on a high note, with PBAT prices closing at USD 2050/MT, FOB Hamburg.
The PBAT market in Germany and Europe in Q2 2024 has been characterized by a mixed pricing environment. This period exemplifies the dynamic nature of the PBAT market, shaped by various economic and regulatory factors.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American PBAT market experienced a series of price fluctuations, reflecting the complex interplay of market forces. January saw a notable 5% surge in prices due to increased reliance on imports from Asia, highlighting supply chain vulnerabilities.
However, February witnessed a 3% decline in prices as demand softened amidst economic uncertainties. Lower component prices helped alleviate production costs, exerting downward pressure on PBAT prices.
In March, prices rebounded by 6%, buoyed by growing demand from sectors like biodegradable packaging and automotive applications. Stockpiling activities and import dependence further contributed to the price uptick.
Overall, Q1 showcased dynamic price movements influenced by shifting supply-demand dynamics and economic conditions. Strong demand from various industries, driven by environmental concerns, strained by limited domestic production capacity and supply chain disruptions, led to price increases.
Seasonality also played a role in the price changes in Q1. The quarter saw a 9% decrease in prices compared to the same quarter last year. However, there was a 4% increase in prices compared to the previous quarter in 2024. This indicates a positive trend in pricing, with prices gradually increasing over time.
Furthermore, there was a notable price difference between the first and second half of the quarter, with prices increasing by 9%. This suggests that the pricing environment in the USA was becoming more favorable towards the end of the quarter.
In conclusion, the pricing environment for PBAT in the North America region in Q1 2024 was positive. The latest quarter-ending price for PBAT in the USA was recorded at USD 1796/MT CFR Los Angeles.
APAC
In the APAC region, Polybutylene Adipate Terephthalate (PBAT) prices exhibited a mixed trend during the first quarter of 2024. In January, prices increased by 1% due to a combination of factors including supply scarcity, rising feedstock costs, logistical challenges, and strong demand driven by environmental awareness and government support.
However, in February, PBAT prices experienced a notable 4% decline. This decrease was attributed to increased production rates, ample availability of Butanediol (BDO), and stable supply conditions, particularly in China, despite ongoing global shipping delays and production issues.
In March, PBAT prices rebounded, showing a 4% increase. This upward trajectory was fueled by growing demand stemming from environmental concerns, limited production capacity, and scheduled maintenance shutdowns at manufacturing plants. Additionally, rising export demand to the USA and Europe contributed to the price hike, reflecting the dynamic and multifaceted nature of the APAC PBAT market.
China has experienced significant price changes for PBAT. Overall trends in the Chinese market have shown a positive pricing environment, with prices increasing by 13% from the previous quarter and 7% from the first half of the quarter. Compared to the same quarter last year, prices have decreased by 2%.
The latest quarter-ending price for PBAT in China is USD 1603/MT, FOB Qingdao. This price reflects the overall increasing sentiment in the market and suggests a positive pricing environment for PBAT in the APAC region.
Europe
In Q1 2024, Polybutylene Adipate Terephthalate (PBAT) prices in the Europe region exhibited an overall increasing trend, although they initially declined. In January, PBAT prices in Germany experienced a 2% decline. This drop was attributed to increased production in Asia, particularly in China, which resulted in a surplus in global supply, surpassing demand in Europe. Additionally, lower feedstock prices and logistical challenges, compounded by reduced consumer goods demand, contributed to the downward trend.
However, in February and March, PBAT prices in Germany surged by 4% each month. This increase was driven by heightened demand and exports, coupled with regulatory initiatives such as the European Green Deal, which aimed to promote packaging circularity. Despite stable raw material costs, manufacturers faced challenges due to supply constraints, underscoring the importance of vigilance and adaptability for sustained growth.
Throughout the quarter, several significant factors influenced market prices. The tightening global supply of PBAT, alongside increasing demand from sectors like packaging and automotive, contributed to the price rise. Limited production capacity, disruptions in the supply chain, and fluctuations in key raw material prices, such as adipic acid and butanediol, also played a role in driving prices higher.
Among the European countries, Germany has witnessed the maximum price changes. The price of PBAT in Germany has shown a significant increase from the same quarter last year, with a percentage change of -1%. The price change from the previous quarter in 2024 is recorded at 4%. There has been a notable price difference between the first and second half of the quarter, with a percentage change of 9%. The latest quarter-ending price of PBAT in Germany is USD 1926/MT, FOB Hamburg.
Overall, the pricing environment for PBAT in Europe during Q1 2024 has been positive, with prices showing an increasing trend. The strong demand from various sectors, coupled with supply constraints and fluctuations in raw material prices, has contributed to the upward pressure on prices."
For the Quarter Ending December 2023
North America
Polybutylene Adipate Terephthalate (PBAT) prices in the North American market exhibited a mixed trend in Q4 2023. The quarter commenced on a bullish note, characterized by moderate supply and high demand from downstream industries. However, the market sentiments turned bearish due to lower demand in downstream packaging markets and destocking storage in Asian markets post-festive season.
Additionally, the strengthening of the US dollar and economic uncertainty led to a decrease in overseas orders for packaging markets, further impacting the PBAT industry. The ongoing conflict in West Asia and escalating energy prices added to the market's uncertainty. Nevertheless, a decrease in upstream petrochemical production and stock, along with lower freight charges, supported a price drop. The US government's allocation of USD 1668 billion to the National Advanced Packaging Manufacturing Program (NAPMP) created opportunities for PBAT manufacturers in downstream packaging industries.
The price of Polybutylene Adipate Terephthalate CFR Los Angeles in the USA for Q4 2023 assessed at USD 1668/MT.
APAC
Polybutylene Adipate Terephthalate (PBAT) prices in the APAC region have experienced a mixed performance in Q4 2023. The market situation has remained stable as upstream prices for PTA, adipic acid, and butane diol have stayed consistent amid sluggish growth in petrochemical capacity due to uncertainty in the crude oil market. Despite the stability in upstream prices, the beginning of the quarter saw subdued downstream demand, and a decrease in overseas orders exerted pressure on prices. The decline in freight rates also contributed to the overall price drop. The West-Asia conflict escalation posed a risk of energy price hikes, while China's recovering economy may support a PBAT price increase. In China, the market has been bearish with moderate supply, especially in the packaging industry, which witnessed low demand post-festive season. An increase in upstream petrochemical production and stock was expected to facilitate a price drop, further supported by a decrease in freight charges. The correlation price percentage in Q4 2023 was -34%, compared to the same quarter of the previous year. The percentage change from the current to the previous quarter was 0%. The price percentage comparison of the first and second halves of the quarter in China was -5%. The latest price of PBAT FOB Qingdao in China in Q4 2023 is USD 1589/MT.
Europe
The Polybutylene Adipate Terephthalate (PBAT) market in the European region during Q4 2023 has been impacted by several factors. The market situation has been bearish due to subdued demand from the downstream food packaging industry after the festive season. The decrease in the strength of the dollar compared to the Euro has also impacted prices. The escalation of the West-Asia conflict might cause a price hike in energy prices. However, there has been an increase in downstream industry demand amid China's recovering economy, which might support a PBAT price hike. Germany has been a significant player in maintaining the sustainability of the packaging industry and reducing plastic waste. German manufacturers have been diverting from single-use packaging production lines to biodegradable packaging material production, such as PBAT. The price percentage change in Germany from the previous year's same quarter is -33%, and the price percentage change from the current to the previous quarter is -9%. The price percentage comparison of the first and second halves of the quarter in Germany is -3%. The latest/quarter-ending price of PBAT FOB Hamburg in Germany in Q4 2023 is USD 1825/MT.
For the Quarter Ending September 2023
North America
Polybutylene Adipate Terephthalate (PBAT) prices throughout the third quarter have continued to follow the bearish trend that started in June in North American territories. In the first half, adequate availability of upstream inventory, declining demand from the downstream electronics industry, and a moderate manufacturing rate have suppressed demand strength overall. The competitive market of PLA and PHAs has also provoked traders to reduce their margins on PBAT. Lower prices of upstream Adipic Acid, Butanediol, and fuel Natural Gas due to poor consumption and lengthy supply have supported the production cost of PBAT to hold a competitive lower position. Moreover, high domestic inventory levels and a stronger US dollar have forced import price quotations to be lower. Furthermore, overseas purchases have seen no growth due to declined demand in the downstream packaging industry. In the second half, though unplanned plant stoppages in overseas Asian countries have been putting pressure on supply operations, underwhelming downstream industry demand has limited long-term pressure on pricing. Sluggish manufacturing industry, declining new orders, work backlogs, and low output expectations have all put the U.S. market in uncertainty. As data reported, U.S. PMI registered a decrease, falling from 48.8 in July to 47.3 in August, indicating a shrinking manufacturing industry. Reduction in the number of new orders has affected production lines. According to the latest data revealed from retailers, U.S. consumer spending has been under stress in September, indicating a gloomy outlook for the holiday season. Moreover, markets have been watching the upcoming Federal Reserve meeting amidst oil market volatility. Thus, PBAT prices as of Sept. 29 have closed at USD 1665 per metric tonne, CFR Los Angeles.
APAC
Polybutylene Adipate Terephthalate (PBAT) prices in India’s market have continued the bearish tail of the last quarter. In the first half, due to the strong supply of upstream raw materials throughout the Asian market and moderate demand from the sustainable packaging industry, PBAT prices have not received enough support. The PMI of India was 57.7 in July, which gave a sign of stable manufacturing units' operating rates throughout the month of July. In August, however, PBAT prices in Vietnam have shown little improvements. The inflation rate in Vietnam has been reported under control, valued at 2.06%. However, a surging rate has been forecasted. The growing demand in the downstream food packaging industry and price hikes of upstream raw materials have maintained a stable market. In Vietnam, furthermore, the producers of synthetic polymers have been under pressure provided by the government to use biodegradable materials for the sustainability of the world. However, in terms of international trade, rising tension between China and The West has hampered trade reliance with China and hence China’s export demand. As reported, China has been in a state of deflation- Consumer prices have sunk by 0.3%. Moreover, due to geopolitical conflicts and several China-diversifying policies, many companies have been looking to move their China manufacturing hub to Southeast Asia. Moreover, a downturn in the downstream polyester market of China has been revealed, which has been linked to China’s sluggish economic growth and global supply disruptions. However, the August prices in India have maintained their stability because of a wait-and-see attitude amongst suppliers. The upstream crude oil market volatility and steady downstream sustainable packaging demand from the FMCG industry have kept the PBAT market stable. Several maintenance shutdowns of Southeast Asian manufacturing plants have revealed a sluggish demand from downstream industries.
Europe
Following the second quarter, the third quarter in the European economy has witnessed a continuous drop in Polybutylene Adipate Terephthalate (PBAT) prices. In the first half, declining frequency of quotations from downstream electronics and packaging industries have indicated a significant decline in PBAT demand both internationally and domestically. Market rivalry with its alternatives such as PLA or PHA has also supported the price drop. Adequate availability of inventory and a moderate manufacturing rate have suppressed demand strength overall. Italy’s inflation rate in July was reported to be on a downtrend, at 5.9 % lower than the previous month's inflation of 6.4%, as data provided by the National Statistical Institute. A registered slowdown in prices of transport services of non-regulated energy products (decline from +8.4% to 7.0%) and process-food products (a drop from 11.5% to 10.5%) has been reported. Moreover, overseas purchases have decreased due to a huge deficiency in trade reliance with major trading countries like China. Moreover, lower traded prices of upstream Acetic acid and stable paraxylene prices have contributed their respective percentages to the production cost. In the second half, the demand for petroleum products has also been losing ground after Hurricane Idalia made its landfall. The polyester markets have reported a drop in one of the major overseas markets, China. Other recycled products markets such as PET and chip market remained relatively stable, signifying a slowdown in the polyester PBAT market. Furthermore, a key source of weakness in the European economy has been Germany, whose manufacturing and export-oriented economy has been hit by higher energy prices and slowing demand in China, as reported by a key trade partner. Regional investors have been preferring to invest in China rather than its domestic market due to the foggy economy and low demand in the downstream packaging industry.
For the Quarter Ending June 2023
North America
Throughout the second quarter of 2023, PBAT prices inclined in the North American regional market owing to the moderate demand outlook from end-use manufacturing units and inclined imported prices. Three major cities in the US (San Diego, Los Angeles, and New York City) followed the ban on single-use plastic consumption, consequently raising the demand. The US Federation also continued to raise the interest rate on a higher edge in the second quarter, impacting the PBAT prices and keeping it on the higher side. Market participants have revealed crumbling stock levels while PBAT accessibility in the domestic market was to a great extent as import flow was likewise weak on the US shores. Moreover, the US Ports of Long Beach and Los Angeles have seen a lack of workers and dockworkers, which at last prompted the closure of the ports. In the US, controllers have closed down and sold three medium size US banks starting from the start of Spring that is Silicon Valley Bank, Signature Bank, and First Republic. Towards the quarter's end, PBAT prices were 2219 per MT, CFR Los Angeles.
Asia Pacific
PBAT market dynamics in the Asia Pacific region showcased mixed market dynamics throughout the second quarter on account of fluctuating demand frequency throughout the quarter. Major facets governing the overall price dynamics of PBAT included the declining feedstock (adipic acid) accompanied by the relaxed energy prices significantly impacting the overall production cost of PBAT in the Asian region. China's economy developed 6.3% in the subsequent quarter, which was quicker than the 4.5% development seen in Q1. The development number was, to a great extent, because of base impacts. The Chinese government centers more on the production and utilization of biodegradable packaging material significantly among online food administrations and agricultural areas. The interest for the item from drug creation units alongside the rising interest for mulching films from the rural area. As per the National Development and Reform Commission and the Ministry of Ecology and Environment of China, the end-use producers confronted a supply lack prompting cost tendency in the country. Container oversupply was seen in the Chinese ports prompting shipping lane disturbance in the worldwide market. Hongqing Jianfeng New Material Co., Ltd. Of China will manufacture more PBAT as the improvement season of the PBAT project in the upcoming quarter. Towards the quarter's end, PBAT prices were 1893 per MT, FOB Qingdao.
Europe
PBAT prices in the European market remained on the upper side on account of the inclined demand outlook amidst the relaxed prices of feedstock (adipic acid and butanediol) in the domestic market. Improved modern tasks alongside better interest viewpoint fundamentally affected the general market elements of PBAT. Tight stock alongside a better interest standpoint had slanted the costs of PABT in the midst of the steady interest viewpoint. Inventories worked on full edge to satisfy the interest from downstream areas. The interest in mulching films represented the general market costs of PBAT as the spring halls are on top of relatively administering the general market elements of PBAT. The steady effect of rising expansion had kept buyers in Germany from submitting bigger requests. Producers kept costs low to draw in additional clients. Inventories were adequate to take care of the homegrown interest. Moreover, market competition with other biodegradable resins raised the prices and the consumption rate inclined in the regional market.
For the Quarter Ending March 2023
North America
North American market witnessed a declining trend in Q1 of 2023 on account of fluctuating feedstock (adipic acid and butanediol) prices in the domestic market. After the New Year holidays and the disruption caused by Storm Elliot in the United States, demand remained slow in the market. The demand for PBAT remained poor throughout the week as consumers sought alternatives, lowering local production and sales. The market freight prices between the United States and Asian countries have reduced because of the weak demand outlook. Following the bank crisis, US chemical and industrial units suffered financially, affecting general market sentiments. Demand from downstream (biodegradable food packaging units) remained consistent, with sufficient stockpiles to meet domestic demand. Towards the quarter's end, PBAT prices were 2087 per MT, CFR Los Angeles.
Asia Pacific
In the Asia-Pacific market, the market prices of PBAT followed the declining trend in the Q1 of 2023. The Asian market was impacted by the Lunar holiday halt in production activity and supply disruption in China. Although the Chinese market resumed production in mid-quarter, the supply chain remained disrupted due to a workforce shortage. The price of the feedstock adipic acid and butanediol declined in the third month of Q1; hence the price of PBAT was significantly impacted as production costs declined. The overall market dynamics were influenced by the declining trend of one of the feedstocks, as well as reduced demand for the product. Towards the quarter's end, PBAT prices were 1716 per MT, FOB Qingdao.
Europe
The market prices of Polybutylene Adipate Terephthalate (PBAT) continued to follow the southward momentum throughout the first quarter of 2023. The looming economic downturn had put pressure on manufacturers to keep prices stable. Domestic vendors did not receive many inquiries. The European PBAT market declined due to a weak downstream (biodegradable packaging) sector and a drop in new order placement with manufacturers. Feedstock prices (adipic acid and butanediol) have remained low, affecting the production costs of PBAT. The supply chain was drastically impacted by the series of protests by union members in European countries. Inventories were adequate, but capacity was reduced due to a weaker demand projection. Towards the quarter's end, PBAT prices were 2035 per MT, FOB Hamburg.
For the Quarter Ending December 2022
North America
In the North American market, Polybutylene Adipate Terephthalate (PBAT) prices witnessed a declining trend throughout the fourth quarter of 2022. The International Longshore and Warehouse Union member stopped the vessel from operating on the shore, lengthening the product's travel time. As feedstock (adipic acid and butanediol) prices dropped in the regional market, the overall prices of PBAT also declined. As a result of the railway union member's planned strike, the region's supply chain was impacted. Low industrial output was caused by declining demand, which affected inventories. Demand conditions on both domestic and foreign markets had weakened as new export orders declined. In the domestic market, employment growth slowed as demand on available capacity declined, and work backlogs lessened. Prices of PBAT were similarly impacted by the decline in the dollar rate. Towards the quarter's end, festive holidays led to a temporary halt in the operational activity of PBAT in the regional market, proportionally impacting the final prices.
Asia Pacific
In the Asia-Pacific market, the market prices of PBAT followed the declining trend in the Q4 of 2022. China and Vietnam are the major manufacturers of PBAT. The feedstock (adipic acid) prices had declined in the regional market, proportionally impacting the final prices of PBAT. As operating activities in the regional market have slowed, the tight limits that the government authorities have once more imposed have impacted the Chinese manufacturing sector. Even if the Chinese market's industrial operational rate has improved, manufacturers still struggle with a staffing shortage due to the COVID infection backlog. Despite the product's sluggish demand, the Vietnam PMI fell, impacting the operational pace in the domestic market. Manufacturers were reluctant to sell their available stock, which restricted supply; at the same time, spot auctions and competitive purchases impacted the final prices of PBAT. The demand for the product from the biodegradable food packaging sector remained slow throughout the quarter in the regional market.
Europe
The market prices of Polybutylene Adipate Terephthalate (PBAT) continued to follow the southward momentum throughout the fourth quarter. In the German market, PBAT prices continued to decline as a result of weak demand and fewer inquiries. The downstream polymer and packaging sector showcased a slight interest in buying the product, and the fundamentals of demand for the product on the European market have been weak. The country's inflation rate caused a slowdown in PBAT production for the German market. The suppliers faced low inquiries as fear of economic recession in the upcoming quarter, and higher energy prices restrained the end users from making more inquiries about the product.
For the Quarter Ending September 2022
North America
In the North American market, the Polybutylene Adipate Terephthalate (PBAT) prices witnessed mixed sentiments as the operational rate of the product also remained low. The fluctuations in the global petrochemicals market significantly impacted the freight charges. In August and September, speculation about a US recession gained traction as consumer demand fell and inflation rates for several commodities continued to rise unabatedly. Sluggish demand from downstream businesses, such as the Biodegradable polymer chain, tipped the scales in favor of the US economy's slower growth rates. Although PBAT production in the United States gradually improved, the amount of PBAT available for import from Vietnam and China remained limited. The domestic market's declining feedstock (butanediol) prices significantly influence PBAT market prices. Inflation in the country was proportional, affecting PBAT demand and production rates. Furthermore, due to piled-up cargo at the port, the supply of the product from the major exporting nation, China, remained uncertain. As a ripple effect, the Polybutylene Adipate Terephthalate prices for CFR Los Angeles (USA) settled at USD 4150/MT.
Asia Pacific
In India, the PBAT prices witnessed a stagnancy price trend because of lower production rates. Production and operational rates were constrained due to the astronomical rise in upstream fuel prices. Higher PBAT costs were caused by logistical issues and a lack of domestic suppliers. Furthermore, rising demand and a positive buyer mood in the downstream biodegradable plastics and packaging sectors have kept the upward trend. The PBAT market's declining trend has been exacerbated by weak demand from end-use industries. Furthermore, the Southern region of China saw decreased purchasing activities due to the local market shutdown rather than the power crisis. Imports of the feedstock, maleic anhydride, from the Chinese market have remained limited due to the country's narrow vessels, resulting in a delayed transit time of the product in the domestic market. Furthermore, feedstock and maleic anhydride imports from the Chinese market have remained limited due to the country's limited vessel capacity, resulting in a delayed transit time of the product in the domestic market. As a ripple effect, the Polybutylene Adipate Terephthalate prices for FOB Qingdao (China) settled at USD 2940/MT.
Europe
In the European market, the PBAT prices showcased a fluctuating price movement in the third quarter of 2022 as the production and operating rates were restricted amidst skyrocketing fuel costs. Higher PBAT prices in the German domestic market were driven by logistical issues and a scarcity of supply. The lack of inquiries from the downstream packaging sector dampened market sentiments for PBAT resin in the domestic market during August. According to market sources, traders are ready to bargain over spot purchases as the fear of recession looms over the heads of the country's major players. The termination of natural gas prices from Russia has harmed the production rate and cost of PBAT. Domestic PBAT production has also remained low due to lower demand for the product and limited energy for PBAT production. Nonetheless, the country's energy crisis remains a significant concern among market participants, which may disrupt pricing dynamics in the coming months. As a ripple effect, the Polybutylene Adipate Terephthalate prices for FOB Hamburg (Germany) settled at USD 4100/MT.
For the Quarter Ending June 2022
North America
PBAT resin prices soared to USD 4005/tonne CFR Los Angles this quarter, Due to rising demand and limited supply. While PBAT production in the United States gradually improved, the amount of PBAT available for import from Vietnam and China remained limited. Low production rates resulted from a paucity of raw materials such as BPO and Adipic Acid, as well as routine maintenance. As PBAT demand in the domestic market of the United States increased, this pricing pattern emerged. The paper and coating sectors were hampered by a lack of supply and low stocks among downstream firms, resulting in rising production costs in the region.
APAC
PBAT resin prices have fallen in the Asia Pacific market since May 2022, owing to lower demand fundamentals and a lack of market activity. "An Phat Holdings" in Vietnam is the major player in the PBAT market, which has increased the operating rates. Due to availability and a minor decrease in downstream demand, the price of feedstock BDO decreased, placing upward pressure on the price of PBAT in China. With the resurgence of Covid 19 and lockdowns in some parts of the country, domestic production and international trade activities have been hampered. The supply-demand imbalance and the constantly altering upstream crude oil value chain are largely to blame for this pricing volatility.
Europe
Back to lower production rates, PBAT prices in the German market climbed in June. Production and operating rates were restricted as upstream fuel prices skyrocketed. Logistical issues and a scarcity of suppliers drove higher PBAT costs in the German domestic market. Furthermore, rising demand and favorable buying sentiments in the downstream biodegradable plastics and packaging sectors have maintained an upward trend. The price of Polybutylene Adipate Terephthalate FOB Hamburg averaged during June was assessed at USD 4033/MT, maintaining the upward trend. Furthermore, PBAT prices are mainly hampered by the increase in feedstock BDO, PBAT, and Adipic Acid prices.
For the Quarter Ending March 2022
North America
Prices for Polybutylene Adipate Terephthalate resin (PBAT) in the United States increased in the quarter ending March 2022. As a result of higher demand and limited supply, the market's sentiments have shifted slightly. Trade activities have been hampered in recent weeks due to Covid in Asian countries, causing PBAT shortage in the US market. The price of PBAT in the United States CFR Los Angeles was predicted to be around USD 4050/MT towards quarter end. Furthermore, increased demand and strong purchasing sentiments in the downstream biodegradable polymer and packaging industries have maintained the higher pricing trend.
APAC
The rise in crude oil and feedstock prices drove up PBAT prices in the first quarter of 2022. The price of feedstock BDO rose due to limited supply and a modest rise in downstream demand, putting upward pressure on the price of PBAT in China. Domestic manufacturing and international commerce operations have been impeded by the reappearance of Covid 19 and lockdowns in various sections of the country. This pricing volatility is primarily due to a supply-demand mismatch and a continually changing upstream crude oil value chain. Since February's outages in China, traders have been worried, which caused a scarcity of PBAT Resin in the local market. Furthermore, because to restricted availability and a minor rise in downstream demand, feedstock BDO prices increased. Polybutylene Adipate Terephthalate FOB- Qingdao prices were last assessed in March at USD 3545/MT.
Europe
The price of PBAT Resin in the European region increased during Q1 2022 due to strong demand and a tighter supply. According to pricing announcements made by certain industries in February and March, the price in the quarter climbed significantly as compared to the previous quarter. Because the feedstock BDO (Butanediol) was in short supply, dealers increased their manufacturing rates. As a result, higher bids are passed on to end customers. In Germany, logistical issues and a shortage of supply drove up PBAT prices. Furthermore, increased demand and purchasing emotions in the downstream biodegradable polymer and packaging sectors have kept the price trend upward. Polybutylene Adipate Terephthalate FOB Hamburg prices during the last month of the quarter were assessed at USD 3923/MT.
For the Quarter Ending December 2021
North America
In comparison to Q3, PBAT fell to its lowest level in Q4. The price reduction was compounded by a sharp dip in October as a result of ample supply and a harsh trading sentiment. The market was also impacted by the supply contraction brought on by China's capacity expansion. On the other side, sluggish demand in North America had an impact on trade from Asia, resulting in an oversupply in Asian economic sectors. The downstream have shown a shaky interest. This, too, had a negative influence on PBAT prices in the United States.
APAC
Prices of Polybutylene Adipate Terephthalate (PBAT) seesawed in the Asian market during Q4 2021. Prices fell at the start of the quarter due to surplus production in many south Asian countries as well as a constrained demand pattern. In November, however, numerous Asian nations saw a significant increase in PBAT prices as a result of China's hindered trade activity and halts during the festive seas in the Indian market. PBAT resin producers in South Korea and China have also been heard boosting their production capabilities and collaborating on the creation of greenfield manufacturing sites to meet global demand. As a result, in the coming six months, PBAT resin prices are projected to stabilize. Polybutylene Adipate Terephthalate CFR- Chennai INR 235000/MT during December in India.
Europe
PBAT prices fell in Q4 compared to Q2 and Q3 due to ample supply and a sluggish trade environment. The European market is dominated by adverse sentiment for Feedstock BDO, as weakening demand affects manufacturers. Because of excessive inventories among dealers and a lack of interest among consumers, local manufacturers reduced the price of PBAT to the lower end. Due to sluggish sales and income from the big firms, the downstream markets also decreased in this quarter. The increased limits implemented across Europe to prevent the spread of the Omicron strain, as well as concerns about the demand forecast for downstream Tetrahydrofuran had a detrimental influence on the sectors in December.
For the Quarter Ending September 2021
North America
During Q3 2021, PBAT resin prices surged significantly across North American region, backed by the steep climb in prices of major feedstocks Adipic Acid and Butanediol (BDO) amidst the modest demand from the downstream sectors. Disrupted supply chain and halted production activities, as a repercussion of Ida Hurricane in US were few of the factors which contributed to the significant surge in PBAT prices. As US imports PBAT primarily from China, due to port congestion in China during August, the overall supply chain remained adversely affected which consequently influenced the price of PBAT in other regions. Thus, limited availability of raw materials and robust demand from the downstream packaging, consumer goods segments intensified the overall pricing trend of PBAT.
Asia
In Q3 2021, prices of Polybutylene Adipate Terephthalate (PBAT) showcased mixed sentiments in the Asian market. At the beginning of the quarter, prices traced downward trajectory due to surplus production in China, Taiwan and South Korea amidst the constricted demand pattern. However, a prominent surge in the prices of PBAT was witnessed in September in several Asian countries, due to the disrupted trade activities from China. Besides, PBAT manufacturers in South Korea and China were heard expanding their production capacities as well as joining hands for the development of greenfield manufacturing facilities to fulfil the global demand for PBAT resin. Thus, moving ahead, prices of PBAT resin are likely to trace stability in the next six months.
Europe
In the European market, a significant rise in prices of PBAT resin was observed in the third quarter due to raw material scarcity and lower imports from US. Additional factors such as surging demand for biodegradable materials for the manufacturing of downstream products along with the elevated prices of the feedstock led to the hike in PBAT prices. Besides, exponential surge in the freight cost across Europe-USA and Europe-Asia trade route due to container shortage also contributed to put forth an upward pressure upon PBAT across the region.
