For the Quarter Ending June 2025
North America
• The U.S. Polybutylene Adipate Terephthalate (PBAT)Price Index averaged USD 1530/MT, CFR Los Angeles during Q2 2025, down by 6% from Q1 2025, as early-quarter price falls were followed by stabilization and minor recovery in June with demand resilience.
• PBAT Price fell first in April as import demand weakened, inventories remained high, and Chinese-origin offers were softer, but rose in June when worldwide supply contracted and freight volatility influenced landed costs.
• The Demand Scenario for PBAT remained consistent, fueled by continued food-packaging, agriculture, and compost bag segments' consumption, despite general macroeconomic volatility and trade-related caution.
• PBAT Production Cost Trend remained mixed; while PTA saw upward movement in June, BDO and Adipic Acid were largely stable or softened, allowing U.S. producers and importers to manage margins without major price shocks.
• Imports from Asia remained reliable despite shifts in transpacific freight rates and tariff-related scheduling changes. Domestic producers like BASF and TotalEnergies Corbion maintained consistent output, helping support market balance.
• Trade tensions and reduced de minimis eligibility led to cautious procurement behavior in Q2, particularly for smaller converters, though this was offset by large buyers engaging in structured, forward-contract purchasing.
• Why will the price increase in July 2025? The PBAT Price Forecast suggests a likely increase in July due to rising feedstock costs (especially PTA), restocking momentum, and reduced buffer inventories at converters after Q2’s controlled offtake.
• Overall, the North American PBAT Price Index reflected a mixed Q2 trend, with cost management, policy-driven demand, and trade dynamics jointly shaping a gradual recovery from early-quarter price pressure.
APAC
• The Polybutylene Adipate Terephthalate (PBAT) Price Index in China averaged USD 1435/MT, FOB Qingdao in Q2 2025, reflecting a 0.5% increase from Q1 2025, driven by firm domestic demand, seasonal restocking, and rising feedstock costs.
• PBAT Price trended upward during Q2 amid strong pull-through from sustainable packaging and agricultural film sectors, bolstered by regulatory enforcement of plastic bans and green procurement standards.
• The PBAT Demand Outlook remained robust, supported by China’s biodegradable mandates, a surge in e-commerce packaging needs, and broader adoption in compostable consumer goods and agri-inputs.
• PBAT Production Cost Trend showed mixed movement—while PTA and BDO prices rose, Adipic Acid saw intermittent declines; net impact raised production costs, prompting price increases to protect margins.
• Despite intermittent port congestion at Shanghai, Ningbo, and Qingdao due to fog and US-bound export spikes, PBAT supply remained steady with strong inland logistics and strategic inventory buffers.
• Environmental audits and temporary output adjustments added to domestic supply tightness, while rising global demand from Southeast Asia and Europe added export pressure, amplifying the Q2 upward price push.
• Why will the price increase in July 2025? The PBAT Price Forecast anticipates further increases in July due to sustained demand from biodegradable e-commerce packaging and agriculture, rising PTA input costs, and delayed feedstock arrivals from port disruptions.
• Overall, the China PBAT Price Index in Q2 2025 reflected a cautiously bullish market, backed by regulatory-driven demand growth, modest cost inflation, and firm supply-demand alignment.
Europe
• Polybutylene Adipate Terephthalate (PBAT) Price Index in Germany declined 1.5% from Q1 2025 but showed an overall incline through Q2, with the quarterly average assessed at USD 1855/MT, FOB Hamburg, indicating a recovery in late May and June after early weakness.
• The PBAT Price experienced an initial dip in April due to subdued PBAT Demand Outlook in biodegradable packaging and agriculture, combined with logistical disruptions at Hamburg port and weak converter activity.
• As May progressed, restocking activity, supportive EU sustainability mandates, and seasonal demand from the food and agricultural sectors improved offtake, lifting the PBAT Price Index.
• A spike in PBAT Production Cost Trend—particularly due to rising prices of 1,4-Butanediol (BDO) and transport bottlenecks—led producers to pass through higher costs in mid-to-late Q2.
• By late June, despite summer procurement softness and rail closures, PBAT supply was managed efficiently through inventory planning, helping maintain pricing stability and prevent sharp declines.
• Competitive pressure from cheaper Asian PBAT imports was offset by local regulatory pull and structural support from Germany’s recycling infrastructure and compostability mandates.
• The PBAT Demand Outlook remained stable, driven by EU directives, compostable food packaging, and mulch film adoption, while innovations in recyclable bioplastics continued to support medium-term interest.
• PBAT Price Forecast for July 2025 suggests a further increase in the Price Index, driven by higher logistics costs from Hamburg rail outages, tight domestic delivery schedules, and expected procurement by converters ahead of potential holiday-linked disruptions in August.
• Rising feedstock costs and tighter freight availability are expected to raise prices further, reinforcing upward momentum into early Q3.
For the Quarter Ending March 2025
North America
In Q1 2025, the U.S. PBAT market experienced varied price movements shaped by demand shifts, supply dynamics, and broader economic factors. Prices began the quarter with a decline in early January due to slow post-holiday demand, increased production, and competition from conventional plastics.
By mid-January, prices rebounded as industrial activity resumed, raw material costs edged up, and sustainability-focused sectors boosted demand. Late January saw relative price stability, supported by improved logistics and steady inventory levels. February started with another dip in prices driven by oversupply, weak downstream consumption, and rising imports from lower-cost regions. A brief mid-month recovery reflected balanced supply and demand, although market sentiment remained cautious amid ongoing trade and economic uncertainty.
Toward month-end, prices softened further as seasonal slowdown and competitive pressures from imports weighed on the market. March brought stabilization as lower feedstock costs were offset by elevated energy and labor expenses. Despite weather-related supply chain disruptions, overall inventories were well-managed, and consistent demand from eco-conscious packaging sectors provided support. By the end of March, prices held steady at around USD 1550/MT, CFR Los Angeles, with market fundamentals indicating cautious optimism moving into the second quarter. Also, the prices of Q1 2025 declined by 0.5% as compared to previous quarter.
APAC
Polybutylene Adipate Terephthalate (PBAT) prices in the APAC region showed a mixed trend during Q1 2025. At the beginning of the quarter, prices in China remained stable due to balanced supply-demand dynamics and sufficient production capacity. However, by mid-January, prices began to decline slightly, influenced by seasonal demand slowdowns and increased supply from domestic producers. The Chinese New Year further disrupted supply chains, leading to cautious purchasing behavior and temporary price dips. In February, prices initially dropped due to weak foreign demand and trade uncertainties but rebounded later in the month, supported by post-holiday industrial recovery and rising demand from sustainable packaging sectors. The upward momentum was reinforced by tightening regional supply, particularly after LG Chem suspended its PBAT operations in South Korea. In March, prices stabilized as consistent demand from key sectors like compostable packaging and agricultural films balanced supply levels. Overall, despite some fluctuations, the market-maintained equilibrium by the end of the quarter, supported by stable raw material costs and government policies promoting biodegradable plastics. Thus, the quarter reflected both downward and upward pressures, ending with moderately firm pricing. Compared to previous quarter the prices declined by 2.6% in this quarter.
Europe
During Q1 2025, PBAT (Polybutylene Adipate Terephthalate) prices in Europe witnessed an overall declining trend. At the start of January, prices remained relatively stable, supported by consistent demand for sustainable packaging and steady raw material costs. Regulatory backing, particularly the EU’s Packaging and Packaging Waste Regulation (PPWR), continued to drive long-term interest in biodegradable alternatives like PBAT. However, from mid-January onwards, market dynamics began to shift. Seasonal demand fluctuations and economic uncertainty led to a softening in procurement from key sectors such as packaging and agriculture. Despite stable production and raw material availability, cautious buying behavior and sufficient inventories among end-users weighed on prices. As the quarter progressed, logistical challenges at major ports like Hamburg created inefficiencies, but did not cause major supply shortages. By March, weakening demand and reduced feedstock costs—especially for BDO and adipic acid—contributed to a notable price drop. Increased availability of imports further pressured the market. Overall, while long-term prospects for PBAT remain positive due to sustainability regulations, Q1 2025 was marked by declining prices driven by weak short-term demand and ample supply. Also, the prices of Q1 2025 declined by 1.3% as compared to previous quarter.
For the Quarter Ending December 2024
North America
In Q4 2024, the price trend of PBAT in North America saw a mixed performance. In the first half of the quarter, prices experienced a decline, primarily due to several factors impacting on the market. A seasonal slowdown in demand from downstream industries, such as sustainable packaging, textiles, and consumer goods, resulted in decreased consumption of PBAT.
Additionally, economic indicators pointed to a slight deceleration in the overall economy, further dampening demand. Increased imports, driven by enhanced production capacities in key producing countries like China and Vietnam, contributed to an oversupply, putting downward pressure on prices. Inventory adjustments by producers and distributors added to the surplus, exacerbating the price decline.
In contrast, the second half of the quarter saw a stabilization in PBAT prices, with the market maintaining steadier conditions. Despite ongoing economic pressures and global shipping disruptions, consistent demand for eco-friendly packaging solutions, driven by consumer preference and regulatory support, helped stabilize prices. The stabilization was also supported by steady production and supply of key raw materials like adipic acid and 1,4-butanediol (BDO). By the end of December 2024, PBAT prices in the U.S. closed at USD 1630/MT, CFR Los Angeles, reflecting a balanced market despite earlier volatility. Notably, the quarter recorded a 13% increase from the previous quarter in 2024.
APAC
In Q4 2024, the PBAT market in the APAC region exhibited a mixed price trend, with prices experiencing a decline in the first half and a gradual increase in the second half.
The initial part of the quarter saw a bearish market, primarily driven by reduced demand from downstream industries, including the sustainable packaging sector, which faced a temporary slowdown. Additionally, an increase in domestic production in China led to a market surplus, further exacerbating the price decline. The economic slowdown in China and challenges in manufacturing activity, coupled with low demand from key sectors such as textiles and agriculture, also contributed to the downtrend. Moreover, reduced raw material costs helped lower production costs, which further pressured prices downward.
The latter part of the quarter, however, saw some recovery, with demand for PBAT rising, driven by the growing focus on sustainability and environmental protection. The packaging industry, along with government regulations encouraging eco-friendly materials, spurred increased PBAT consumption. This demand, along with stable raw material supply and improvements in production efficiency, contributed to a modest price increase by December 2024. Despite these challenges, a slight incline of 7% from the previous quarter indicated a minor adjustment in pricing. The price of PBAT in China closed the quarter at USD 1410/MT, FOB Qingdao.
Europe
In Q4 2024, the PBAT market in Europe, specifically in Germany, experienced a mixed price trend. The first half of the quarter witnessed a decline in prices, driven by a combination of factors. Seasonal slowdowns and a minor economic downturn dampened demand from downstream industries, including sustainable packaging. At the same time, increased domestic production, aided by enhanced plant efficiencies, led to a surplus in the market, further exerting downward pressure on prices. Lower raw material costs, such as a drop in adipic acid and terephthalic acid prices, also allowed manufacturers to reduce production costs, contributing to the price decrease.
However, in the latter half of the quarter, prices stabilized as demand remained steady. The focus on sustainable packaging, spurred by both consumer awareness and regulatory support, helped maintain consistent consumption of PBAT. With production capacity and raw material supply steady, prices were able to hold firm despite some logistical challenges, including port congestion during the holiday season. Overall, the quarter maintained a volatile pricing trend, with an incline of 10% compared to the previous quarter. The quarter ended with PBAT prices in Germany closing at USD 1870/MT, FOB Hamburg, reflecting a stable market despite earlier declines.
For the Quarter Ending September 2024
North America
In Q3 2024, Polybutylene Adipate Terephthalate (PBAT) prices in the North America region experienced a significant decline, influenced by several key factors. Market conditions were primarily shaped by a seasonal slowdown in demand from various industries, leading to reduced consumption of PBAT.
Additionally, an oversupply situation emerged due to increased domestic production efficiency and inventory adjustments by producers and distributors. Stable prices of essential raw materials, mainly Butanediol, Purified Terephthalic Acid and Adipic Acid further contributed to lowering production costs, allowing for price adjustments downwards. The USA witnessed the most substantial price changes within the region.
The overall trend in the USA market reflected a consistent decrease in PBAT prices. Notably, the quarter recorded a 2% decrease from the previous quarter in 2024, with a more significant price disparity between the first and second halves, noted at -7%. The latest quarter-ending price for PBAT in the USA stood at USD 1670/MT CFR Los Angeles, signaling a negative pricing environment characterized by declining prices.
APAC
The Q3 2024 PBAT market in the APAC region exhibited a varied pricing environment. In the first half of the quarter, the Polybutylene Adipate Terephthalate (PBAT) market maintained stable prices, supported by a balance between demand and supply, alongside consistent raw material costs. However, during the second half of Q3, PBAT prices in China declined due to several factors. A seasonal slowdown in demand from downstream industries, particularly sustainable packaging, contributed to this decrease, while the weakening Chinese economy saw new manufacturing orders decline at the fastest rate in two years, further impacting PBAT demand. Increased domestic production from improved plant efficiency and new capacities created a market surplus, exerting downward pressure on prices. Despite these challenges, a slight decline of 4% from the previous quarter indicated a minor adjustment in pricing. Notably, China experienced the most significant price changes, influenced by seasonal shifts, production capacities, and import-export dynamics. Overall, the quarter maintained a stable pricing trend, with no significant fluctuations observed between the first and second halves. The quarter-ending price stood at USD 1,470/MT for PBAT, FOB Qingdao, reflecting the overall hybrid pricing environment.
Europe
The fluctuating pricing dynamics was observed in the Q3 for PBAT in the European region. During the first half of Q3 2024, PBAT prices in Germany remained stable. Steady downstream demand from the sustainable packaging sector, along with balanced consumption from agriculture, textiles, and consumer goods, prevented significant price fluctuations. Consistent domestic production matched demand, and effective inventory management helped maintain market stability. Although some raw material prices fluctuated, overall production costs remained controlled, supporting stable pricing amid broader European economic challenges, including ongoing issues with recycling targets, which highlighted the market's resilience. In the second half of Q3 2024, PBAT prices in Germany declined. This drop was driven by a seasonal slowdown in demand from downstream industries and a slight economic downturn, exacerbated by increased domestic production that created a market surplus. Inventory adjustments by producers further contributed to the oversupply, while falling feedstock prices for adipic acid and PTA reduced production costs. Despite a temporary boost from the Olympic Games, underlying demand remained weak, and Eurozone inflation dropped. Ongoing port congestion and shipping disruptions added to the challenges, impacting market stability. Overall, the quarter maintained a volatile pricing trend, with a slight incline of 1% as compared to the previous quarter, along with a -5% fluctuation observed between the first and second halves. The quarter-ending price of USD 1,920/MT for PBAT, FOB Hamburg, reflects this mixed pricing environment.
FAQs
What was the average PBAT Price Index in Germany during Q2 2025?
The PBAT Price Index averaged USD 1855/MT, FOB Hamburg, showing a late-quarter recovery despite a 1.5% decline from Q1.
Why did PBAT prices increase in July 2025 across key regions?
Prices are rising due to higher feedstock costs, restocking activity, and logistical constraints in major markets like Germany, the U.S., and China.
What is the current PBAT Demand Outlook in major regions?
The PBAT Demand Outlook remains stable and resilient, supported by regulatory mandates, eco-packaging, and agricultural applications.
How did PBAT Production Cost Trend influence prices in Q2 2025?
Mixed input cost movements—especially rising PTA and BDO—pushed production costs higher, prompting price adjustments by suppliers.
