PBAT prices advanced in Europe and Asia for the week ending July 25, 2025, but held firm in the USA. In China, regulatory demand was strong, and supply tightness backed the uptrend, while project news announcements fuelled the rise. Europe experienced price hikes spurred by EU packaging regulations and freight delays. The US market was balanced, with firm domestic production and consistent imports countering freight fluctuations. With increasing regulation and logistics pressure, PBAT prices are likely to remain tight across the world, especially in Europe and Asia.
PBAT (Polybutylene Adipate Terephthalate), one of the largest biodegradable plastics, posted higher prices in Asia and Europe but stability in the United States during the week through July 25, 2025. The shift in the market is an indication of region-specific drivers like policy compliance, sectoral development in demand, and supply pressures that are redefining the global biodegradable plastic market.
Asia and China's PBAT prices recorded a strong upswing after a phase of equilibrium. Policy-led demand for packaging, agrochemicals, and consumer products supported this surge. Plastic labelling and regulations regarding biodegradability continued to spur overall take-up among industries. China's booming internet business sector and increasing use of biodegradable mulch films supported downstream demand.
Recent events also affirm positive PBAT sentiment. During early July, Shandong Siyuan New Materials issued its first environmental disclosure on a new 35,000-ton PBAT/PBS production project. In Shandong Province, the project will utilize bio-based feedstocks such as starch, cellulose, and adipic acid and is set to facilitate China's green transition. At the same time, China's recently released Green Finance Catalogue (2025 Edition), taking effect on October 1, covers PBAT-related manufacturing under environmental protection and recycling categories, making it easier to access financing.
On the supply side, environmental audits, spot output cuts, and feedstock delivery delays respectively added to tighter availability. While some softening was seen in one large feedstock (PTA), rising trends in others such as BDO and Adipic Acid, in addition to strategic restocking by converters and strengthening export activity, imposed upward pressure on PBAT prices. In Japan, PBAT market movement closely tracked regional dynamics, capturing China's influence and its own eco-compliance momentum.
In Europe, PBAT prices—particularly in Germany—also recorded an increase after months of relative stability. The rise was largely demand-led since companies moved swiftly to get ready to meet European Union legislation like the Packaging and Packaging Waste Regulation (PPWR) and the Single-Use Plastics Directive. Demand rebounded from food packaging, retail, and sustainable agriculture markets. Imports from Asia topped up domestic supply but did not entirely neutralize demand increase, enabling prices to drift higher.
PBAT prices in the U.S. were steady as the market recovered after past softness in Q2. Compostable packaging, agricultural film, and municipal waste program demand remained firm. Stable supply was provided by continuity of domestic manufacturing and steady import streams. Major customers continued to cover volumes under contract arrangements, which insulated near-term market volatility.
With policy enforcement increasing in Asia and Europe and market adoption accelerating, PBAT prices will remain in an upward direction in these two regions. The US market, currently balanced as of today, can also anticipate upward revisions if international supply tightens or domestic green regulations become stricter soon.
