Polybutylene Terephthalate Prices Plummet Due to Sluggish Feedstock and Stagnant Downstream Demand
- 17-Nov-2022 1:44 PM
- Journalist: Francis Stokes
The price of Polybutylene Terephthalate (PBT) has witnessed a downward trajectory persistently for the past few months in the European market. The stagnant demand from the downstream automotive and construction industries has decreased the cost of Polybutylene Terephthalate in Europe.
The feedstock Butanediol price dropped continuously in Europe, which led to support for the downstream derivative industries, including Polybutylene Terephthalate in the European market and this price drop from the product due to the weak market sentiments from the consumers because of increasing fear of recession in the Eurozone.
In terms of production, the production cost of Polybutylene Terephthalate has decreased due to the decrease in natural gas prices in the European market. Germany has stored more than 90% of its natural gas, followed by other European countries like Austria and Slovakia, while the UK has full of natural gas storage.
Overall, Polybutylene Terephthalate price was weak since July 2022 owing to the high inventories from the manufacturers; at the same time, the demand from the downstream automotive sector was low in the European market. Customers were reluctant to make purchases due to the potential recession, which resulted in a decline in orders from the region's end-use industries. The product's widespread availability also exacerbated a negative trend in the Euro market. According to the source, in October, German manufacturing PMI fell from 47.8 points to 45.1 points compared to the previous month.
In addition, Europe's supply chain has seen a recovery in port waiting times and an improvement in the material available on the market. As per ChemAnalyst, the price of Polybutylene Terephthalate declined by 0.4% during the weekend of 11th November 2022.
According to the expert, the price of Polybutylene Terephthalate may fluctuate in Europe due to uncertainty in the global market. The Europe economy is at a slow pace, and purchasers are ordering only on a need basis.