PBT Prices Gain Upward Trend in Asia and USA Amidst Challenging Supply
- 16-May-2023 11:43 AM
- Journalist: Robert Hume
The Polybutylene Terephthalate (PBT) prices surged in the week ending May 12, 2023, due to crippled supplies from the major PBT exporting countries. As per the ChemAnalyst database, the price for feedstock Butanediol elevation currently impacts PBT pricing dynamics across the globe.
Since the Q1 of the year, the production margin for PBT has been deteriorating, with an inadequate increase in demand from the automotive and other household segments. Presently, the margin has been severely increased, and the operating rates improved in the Chinese market after the Labour Day Holiday. Some stockpiles have already been sold at high prices, so manufacturers have no sales pressure for the time being. Meanwhile, the feedstock Butanediol prices increased this week due to tight supply, and hence, the PBT market is anticipated to gain an upward movement in May due to the slow recovery of the Chinese economy and reviving trading atmosphere in the country.
In the USA, the PBT sellers were nervous about gaining market share over imports this week and opted for a rise in the product prices amidst domestic supply tightness, keeping an eye on the external factors fluctuations and recovering automotive industry sales. On the supply side, the producers faced supply-related challenges amidst increasing production costs and volatility in the crude oil values in mid-may 2023.
As per the ChemAnalyst, PBT prices are projected to surge in the US market owing to climate change and uncertainty in the supply chain during May 2023. Moreover, producers and traders may increase the price for feedstock Butanediol due to the expected increase in the sales of material affecting PBT price momentum in the regional market. On the other hand, the lower feedstock PTA prices in China may also lead to a decline in the prices of the PBT further in May 2023. However, PBT prices are anticipated to be impacted by the slow-recovering Chinese trading environment and tight supply for the short term.