Prices of China Polybutylene Terephthalate (PBT) Nosedive as Market Enters Off Season

Polybutylene Terephthalate (PBT) prices are continuing their journey on a downward slope as 3rd week of May observed further decrease in the price trend. Ex-Works Liaoning price of PBT was measured at USD 2462 per tonne for Injection Moulding grade with Interim Viscosity (IV) 1.2.

Several suppliers pointed out that there is a decline in enquiries for the material and more possibilities for negotiations on bulk offers. Steep decline in demand has been categorized as the key factor behind the continuous slump where some producers have shut their facilities for maintenance while others have curtailed the operating rates in order to counter prolonged dullness.

Sinopec Yizheng, Meizhouwan, and Meiyuan increased their plant turnaround periods with many operating at below 70% of their capacities to combat the dullness. Higher inventory levels and little supply bottlenecks have streamlined the spot material availability of PBT and the latest dip in prices of Butanediol (BDO), key feedstock, also supports the softening trend of PBT.

As per ChemAnalyst, PBT price in China is likely to ease further with downstream demand negatively impacted and continuously falling feedstock BDO. Producers fear lesser export potential as resurgence of the coronavirus across some Asian economies dent supply chains and downstream manufacturing.

PBT is a thermoplastic polyester resin generally produced by the polycondensation of 1,4-butanediol (BDO) with terephthalic acid. It is an amazing material with some outstanding qualities like high thermal resistivity, chemical resistivity, and dimensional stability. It is widely used in the automotive industry for mirror housings, fans, fuse boxes, connectors, switches, and in several other electrical and electronic products.