Polybutylene Terephthalate (PBT) prices in China and the U.S. remained subdued in July 2025, with supply-demand imbalances and cautious downstream activity limiting price movements, while trade uncertainties cloud near-term market direction.
PBT markets in the United States and China exhibited modest fluctuations in July 2025, influenced by local supply-demand conditions and global trade influences. In China, PBT prices fell in early July because of surplus inventory and poor downstream demand but stabilized later in the month. Similarly, the American market, witnessed a marginal price reduction in the early weeks, before stabilizing into a horizontal trend towards the close of July.
In China, PBT softened during the first half of July 2025, indicating lingering downstream sluggishness, and deteriorating upstream fundamentals. While PTA and BDO feedstock supply was steady, the precipitous drop in PTA spot prices put downward pressure on cost of production, dampening any supply-side optimism. Players kept cautious operating levels to prevent inventory accumulation amid a cautious buying community.
Even though NEV sales increased year-on-year in June, the supporting pull in the corresponding segments of component and engineering plastics wasn't enough to trigger substantial consumption of PBT. Seasonal lulls in electronics and appliances, combined with subdued export orders from Southeast Asia, also subdued demand. However, as the month progressed, PBT prices found a temporary floor, not due to demand revival, but as production costs stabilized and sellers avoided further discounts.
Similarly, the U.S. PBT market saw a slight price fall in the beginning, fuelled by an oversupplied but stable supply scenario. Domestic output did not stop, with firm PTA and BDO prices guaranteeing flat production levels. Nevertheless, inventories accumulation, compounded by muted exports to Canada, Mexico, and Southeast Asia, stressed the gap between supply levels and downstream offtake.
Automotive and electronics industries remained weak on demand, with OEMs shelling out to clear inventory rather than new purchasing. However, with the third week came a slight push higher in PTA feedstock costs to offer some cost support as market dynamics returned to normal without any significant supply surprises or cost increases, which left PBT prices unchanged and sentiment cautiously neutral.
In the coming times, China's PBT prices may remain under mild pressure unless end-use industry demand begins to see solid indications of revival. In the United States, the PBT prices will most probably remain in a range-bound configuration with even production economics countering weak consumption patterns. Both markets will probably go cautiously, paying close attention to downstream order flows and events in world trade, particularly the chances of tariff pause expiries in August that can affect subsequent price direction.
