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.
For the Quarter Ending June 2024
North America
In Q2 2024, the Polybutylene Adipate Terephthalate (PBAT) market in North America exhibited mixed trends. During the first half of the quarter, PBAT prices in the USA remained stable, reflecting balanced market conditions. Demand from downstream industries such as packaging and textiles was steady, while the agricultural sector saw moderate demand due to seasonal factors. Domestic production levels were consistent, meeting demand without significant supply shortages. Imports from China and Europe also remained steady, helping to maintain sufficient supply. Despite a 5% increase in freight charges on the China to North America route, there was no notable impact on PBAT prices. Stable raw material costs and a slight easing in inflation further supported price stability during this period.
Towards the end of Q2, there was a marked increase in prices, driven primarily by robust demand and supply-side constraints. Significant factors influencing this bullish trend included heightened environmental awareness, leading to increased demand for bioplastics in packaging and automotive sectors. The region's restricted domestic production capacity, coupled with ongoing global supply chain disruptions, exacerbated the supply-demand imbalance. Elevated freight charges, stemming from logistical hurdles such as port congestion and rerouting due to canal restrictions, further propelled prices upward.
The USA market saw the most pronounced price changes. The quarter was characterized by strong seasonal demand, particularly in agricultural and food packaging applications, which typically peak during warmer months. Quarter-on-quarter, prices rose by 3%, underscoring the current upward momentum. The latest quarter-ending price stood at USD 1891/MT, CFR Los Angeles, reflecting a mixed pricing environment fueled by strong demand and constrained supply.
Overall, Q2 2024 for the PBAT market in North America demonstrated a mixed trend. While the first half of the quarter saw stable prices supported by balanced market conditions and consistent supply, the latter half experienced price increases driven by robust demand, supply-side constraints, and elevated freight charges. The USA's reliance on imports and the willingness of downstream industries to absorb higher costs for bio-based materials intensified upward pressure, sustaining the bullish sentiment through the end of the quarter.
APAC
During Q2 2024, the Polybutylene Adipate Terephthalate (PBAT) market in the APAC region experienced a consistent downward pricing trend, influenced by a constellation of factors. The quarter saw considerable price decreases primarily due to an oversupply in the market, driven by increased production capacities that outpaced demand growth. Additionally, stable raw material costs, particularly for adipic acid and butanediol, allowed producers to lower their selling prices. Seasonal demand fluctuations also played a crucial role; the off-peak demand periods in key industries such as agriculture and packaging contributed to downward price pressures. Moreover, fluctuating global economic conditions and subdued consumer demand across downstream sectors further exacerbated the declining price environment.
Focusing on China, which experienced the most significant price changes, the overall market sentiment was decidedly negative. The country saw a stark contrast to the 1% increase noted in the previous quarter of 2024. Seasonality and overproduction led to a -3% price drop between the first and second halves of the quarter. These trends reveal a strong correlation between the supply glut and reduced seasonal demand, which collectively pressured prices downward. The latest quarter-ending price stood at USD 1564/MT FOB Qingdao in China, reflecting the ongoing bearish market conditions. This quarter has clearly underscored a negative pricing environment for PBAT, driven by an overabundance of supply and tepid demand growth.
Europe
In Q2 2024, the European Polybutylene Adipate Terephthalate (PBAT) market witnessed fluctuating pricing trend with a notable increase in prices initially, driven predominantly by amplified demand from downstream sectors such as automotive, electronics, and sustainable packaging industries. This surge in demand, coupled with limited production capacity and logistical challenges, created substantial supply constraints. Additionally, regulatory shifts aligned with the European Green Deal, promoting the circular economy and sustainable packaging, further amplified demand pressures. Fluctuations in raw material costs, particularly a significant increase in 1.4-Butanediol (BDO) prices, contributed to heightened production expenses, thus elevating overall PBAT prices.
However, towards the end of Q2, PBAT prices showed a declining trend, decreasing by 3%. In Germany, PBAT prices declined due to a lull in demand from downstream industries, especially bioplastics. Seasonal production cycles and prior inventory fulfillment contributed to this drop in fresh demand. Increased domestic PBAT production and higher imports led to a temporary surplus, putting downward pressure on prices. Additionally, a 7% decrease in the price of 1,4-Butanediol (BDO) reduced production costs, allowing German manufacturers to offer more competitive PBAT prices.
Focusing exclusively on Germany, the market experienced significant price increases at the start of the quarter, with a declining trend later, reflecting broader European trends. In Q2 2024, PBAT prices in Germany surged by 11% from the previous quarter. The quarter ended on a high note, with PBAT prices closing at USD 2050/MT, FOB Hamburg.
The PBAT market in Germany and Europe in Q2 2024 has been characterized by a mixed pricing environment. This period exemplifies the dynamic nature of the PBAT market, shaped by various economic and regulatory factors.
