In the first half of May 2025, the international Polybutylene Terephthalate (PBT) market shared conflicting trends, with pricing behaviours in China and the United States influenced by different regional aspects.

While China witnessed a modest price increase, fuelled by constricting supply and positive sentiment, the US PBT market was relatively flat amidst sluggish demand and constant levels of supply. The divergence also represented more fundamental structural differences in supply-demand imbalance, feedstock cost pressures, and downstream industrial activity in both economies.

In China, PBT prices started the month on a firm footing, supported by balanced market situation. The supply remained stable due to consistent operating rates and restarts post-holidays whereas demand from major downstream markets, especially automotive, was weak in early part of the month, which restricted any price increase.

However, as the month progressed a combination of tightening supply and strengthening demand spurred PBT pricing gains. A consistent decline in availability was prompted by plant maintenance and production reductions at major producers such as Zhejiang Petrochemical and Shenghong Refining and Chemical while upstream feedstock PTA experienced lower availability due to diminished operating levels. These supply-side pressures pushed costs up in production, leading producers to lift PBT prices to cover margins.

At the same time, modest terminal demand and restocking activity provided additional support. Improved trade sentiment following fresh Sino-U.S. negotiations added to market-wide optimism, adding to the positive price momentum.

On the other hand, the US PBT market was balanced during the same time. Demand was severely curbed since the US automotive industry still had high vehicle inventories and poor consumer confidence. The OEMs retaliated by scaling down assembly activities, thus restraining raw material purchases. Export business continued to be lacklustre, with slackening import buying interest from international markets like Mexico.

On the supply side, Local manufacturers-maintained production in check, closely tracking the soft demand in order to prevent inventory build-up. Feedstock prices, led by PTA, were stable, leading to balanced production costs and minimal price-incentive reason. Minor supply bottlenecks were reported, but these did not largely impact PBT supply availability, leading to a muted and even-handed market situation.

In the future, PBT market conditions in both markets are likely to diverge further. In China, ongoing supply constraints— from planned maintenance and a slow recovery in downstream markets— could maintain price support through late May, particularly if polyester chain activity picks up. In the US, however, without rebound in automotive demand or export volumes, prices will be flat or face minimal pressure. Market players will keep a close eye on feedstock direction, production scheduling, and macroeconomics to assess the direction for PBT pricing for the rest of Q2 2025.