European Polybutylene Terephthalate Prices Fall Due to Low Demand

The price of Polybutylene Terephthalate has witnessed a downward trend due to the weak demand from the Automotive and Construction sectors in Europe. Construction industry demand has decreased as a result of Europe's economic downturn. Rising interest rates have impacted construction activity, households, and the economy as a whole. Additionally, improvements to the supply chain are lowering demand for some materials. As a result, customers are altering their inventory policies, resulting in slower purchases and anticipated demand drops in the coming months.

The orders from domestic buyers are reduced, and product availability is abundant in the market. Gas storage levels have remained roughly constant over the past few weeks as mild weather has eased pressure on the region's gas reserves. As the region's energy system is less stressed due to persistently warmer-than-usual winters, natural gas prices in Europe have decreased. This decline in natural gas also contributes to the price drop in Polybutylene Terephthalate in the European market.

In addition, the weak cost pressure from feedstock Butanediol further supports the cost of Polybutylene Terephthalate in the European market. The freight charges have also declined in price trend for the past few months due to weak global trading activities. Additionally, low Asian import prices and ease in freight charges from Asia to Europe have been the primary factors for the imported Polybutylene Terephthalate price decrease.

As per the ChemAnalyst, the cost of Polybutylene Terephthalate hovered around USD 4500/MT on a FOB Hamburg basis with a week-on-week depreciation of 1.5% during the week ending 06th January 2023.

According to the expert, the cost of Polybutylene Terephthalate is expected to decline in Europe due to importing from Asian nations at low prices. Further decline in the price of Polybutylene Terephthalate owing to the weak demand from downstream sectors such as automotive, construction, and households are likely to remain weak in the short term, as concluded by several experts.