What is Causing PBAT Prices to Tumble in the Asian Market
What is Causing PBAT Prices to Tumble in the Asian Market

What is Causing PBAT Prices to Tumble in the Asian Market

  • 09-Jun-2022 4:21 PM
  • Journalist: Xiang Hong

Shanghai, China: Polybutylene Terephthalate-Adipate resin prices have been falling in the global market since the beginning of May 2022, owing to lower demand fundamentals and a lack of market activity. "An Phat Holdings" in Vietnam is the most significant player in the Polybutylene Terephthalate-Adipate market. When queried, a firm insider told ChemAnalyst that Polybutylene Terephthalate-Adipate production had come to a halt due to lower market demand. Because polymers such as Ethylene, rather than Polybutylene Terephthalate-Adipate, are in higher demand, they have moved their production to those goods. As a result, the market is at a standstill, with big firms moving their focus away from Polybutylene Terephthalate-Adipate resin.

In terms of supply, the most prevalent biodegradable plastic preferred over Polybutylene Terephthalate-Adipate is PLA (Polylactic Acid). In recent years, China's degradable plastics sector has boomed. According to preliminary data, China's degradable plastics industry, which comprises Polybutylene Terephthalate-Adipate, PLA, and more generates more than 1 million tonnes per year. With a total production capacity of around 800,000 tonnes per year, the Polybutylene Terephthalate-Adipate industry is the largest in terms of product scale, followed by PLA, which has a total production capacity of over 200,000 tonnes per year. Furthermore, China is expected to produce roughly 800,000 tonnes of biodegradable plastic, adequately balancing supply, and demand.

Polybutylene Adipate Terephthalate prices for FOB Qingdao is down by 6.4%, while Polybutylene Adipate Terephthalate FOB Quang Ninh is down by 6.8%. The true competitiveness of the PBAT sector in the future will be determined by having low-cost integrated BDO resources. one is to gain stable butane resources based on PDH devices; the other is to obtain supporting calcium carbide resources. We can only achieve sufficient market competitiveness by developing Polybutylene Terephthalate-Adipate based on resource advantages.

According to ChemAnalyst, "Prices for Polybutylene Terephthalate-Adipate resin are projected to rebound in the next weeks as demand rises and settle at a stable level. In the following weeks, shipping and freight costs are expected to rise, causing prices to go up in both the domestic and international markets. Furthermore, the price of BDO raw material is at an all-time low, and it is projected to climb in the coming weeks. As soon as the market conditions alter, the demand-supply gaps are anticipated to fill."

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