German Polybutylene Terephthalate Prices continued to Plummet due to Sluggish Feedstock Costs
- 11-Oct-2022 6:37 PM
- Journalist: Patrick Knight
The Polybutylene Terephthalate price has continued to drop in the European region, bolstered by the low feedstock prices and weak demand from the downstream industries.
According to the data, the Polybutylene Terephthalate price plunged by around 1.63% in September 2022. In the last week price of Polybutylene Terephthalate declined, attributed to a price decrease from feedstock Butanediol (-2.6%) on a DDP Frankfurt basis during the week ending 07th October 2022 in the German market.
In terms of production, the domestic cost to produce Polybutylene Terephthalate continues to remain high due to lofting energy and operating costs, resulting in low output rates, furthermore, an excessive slowdown in manufacturing output across Europe amid the energy crisis in the region. Despite the rise in natural gas prices, Polybutylene Terephthalate followed a downward trend in the last week. The manufacturing index PMI declined in Eurozone from 49.60 to 48.40 points in September 2022.
The stagnant demand from the European downstream automotive and construction industries further decreases the price of Polybutylene Terephthalate. There is a slowdown in the European economy, the orders from purchasers are decreased, and the product's availability is sufficient in the market. The source said Germany's construction PMI plummeted to 41.8 points in September 2022 from 42.6 points in August 2022.
As per the Analyst, the cost of Polybutylene Terephthalate hovered around USD 4800/MT on a FOB Hamburg basis with a weekly depreciation of 1.8% during the week ending 07th October 2022.
According to ChemAnalyst, it is estimated that the price of Polybutylene Terephthalate is likely to decrease in the German market. It is expected that the stagnant market trend in the upcoming months by an expected slowdown economy in Eurozone. Also, the downstream industries are anticipated to have stable demand from domestic merchants.