For the Quarter Ending June 2022
North America
PBAT resin prices soared to USD 4005/tonne CFR Los Angles this quarter, Due to rising demand and limited supply. While PBAT production in the United States gradually improved, the amount of PBAT available for import from Vietnam and China remained limited. Low production rates resulted from a paucity of raw materials such as BPO and Adipic Acid, as well as routine maintenance. As PBAT demand in the domestic market of the United States increased, this pricing pattern emerged. The paper and coating sectors were hampered by a lack of supply and low stocks among downstream firms, resulting in rising production costs in the region.
APAC
PBAT resin prices have fallen in the Asia Pacific market since May 2022, owing to lower demand fundamentals and a lack of market activity. "An Phat Holdings" in Vietnam is the major player in the PBAT market, which has increased the operating rates. Due to availability and a minor decrease in downstream demand, the price of feedstock BDO decreased, placing upward pressure on the price of PBAT in China. With the resurgence of Covid 19 and lockdowns in some parts of the country, domestic production and international trade activities have been hampered. The supply-demand imbalance and the constantly altering upstream crude oil value chain are largely to blame for this pricing volatility.
Europe
Back to lower production rates, PBAT prices in the German market climbed in June. Production and operating rates were restricted as upstream fuel prices skyrocketed. Logistical issues and a scarcity of suppliers drove higher PBAT costs in the German domestic market. Furthermore, rising demand and favorable buying sentiments in the downstream biodegradable plastics and packaging sectors have maintained an upward trend. The price of Polybutylene Adipate Terephthalate FOB Hamburg averaged during June was assessed at USD 4033/MT, maintaining the upward trend. Furthermore, PBAT prices are mainly hampered by the increase in feedstock BDO, PBAT, and Adipic Acid prices.
For the Quarter Ending March 2022
North America
Prices for Polybutylene Adipate Terephthalate resin (PBAT) in the United States increased in the quarter ending March 2022. As a result of higher demand and limited supply, the market's sentiments have shifted slightly. Trade activities have been hampered in recent weeks due to Covid in Asian countries, causing PBAT shortage in the US market. The price of PBAT in the United States CFR Los Angeles was predicted to be around USD 4050/MT towards quarter end. Furthermore, increased demand and strong purchasing sentiments in the downstream biodegradable polymer and packaging industries have maintained the higher pricing trend.
APAC
The rise in crude oil and feedstock prices drove up PBAT prices in the first quarter of 2022. The price of feedstock BDO rose due to limited supply and a modest rise in downstream demand, putting upward pressure on the price of PBAT in China. Domestic manufacturing and international commerce operations have been impeded by the reappearance of Covid 19 and lockdowns in various sections of the country. This pricing volatility is primarily due to a supply-demand mismatch and a continually changing upstream crude oil value chain. Since February's outages in China, traders have been worried, which caused a scarcity of PBAT Resin in the local market. Furthermore, because to restricted availability and a minor rise in downstream demand, feedstock BDO prices increased. Polybutylene Adipate Terephthalate FOB- Qingdao prices were last assessed in March at USD 3545/MT.
Europe
The price of PBAT Resin in the European region increased during Q1 2022 due to strong demand and a tighter supply. According to pricing announcements made by certain industries in February and March, the price in the quarter climbed significantly as compared to the previous quarter. Because the feedstock BDO (Butanediol) was in short supply, dealers increased their manufacturing rates. As a result, higher bids are passed on to end customers. In Germany, logistical issues and a shortage of supply drove up PBAT prices. Furthermore, increased demand and purchasing emotions in the downstream biodegradable polymer and packaging sectors have kept the price trend upward. Polybutylene Adipate Terephthalate FOB Hamburg prices during the last month of the quarter were assessed at USD 3923/MT.
For the Quarter Ending December 2021
North America
In comparison to Q3, PBAT fell to its lowest level in Q4. The price reduction was compounded by a sharp dip in October as a result of ample supply and a harsh trading sentiment. The market was also impacted by the supply contraction brought on by China's capacity expansion. On the other side, sluggish demand in North America had an impact on trade from Asia, resulting in an oversupply in Asian economic sectors. The downstream have shown a shaky interest. This, too, had a negative influence on PBAT prices in the United States.
APAC
Prices of Polybutylene Adipate Terephthalate (PBAT) seesawed in the Asian market during Q4 2021. Prices fell at the start of the quarter due to surplus production in many south Asian countries as well as a constrained demand pattern. In November, however, numerous Asian nations saw a significant increase in PBAT prices as a result of China's hindered trade activity and halts during the festive seas in the Indian market. PBAT resin producers in South Korea and China have also been heard boosting their production capabilities and collaborating on the creation of greenfield manufacturing sites to meet global demand. As a result, in the coming six months, PBAT resin prices are projected to stabilize. Polybutylene Adipate Terephthalate CFR- Chennai INR 235000/MT during December in India.
Europe
PBAT prices fell in Q4 compared to Q2 and Q3 due to ample supply and a sluggish trade environment. The European market is dominated by adverse sentiment for Feedstock BDO, as weakening demand affects manufacturers. Because of excessive inventories among dealers and a lack of interest among consumers, local manufacturers reduced the price of PBAT to the lower end. Due to sluggish sales and income from the big firms, the downstream markets also decreased in this quarter. The increased limits implemented across Europe to prevent the spread of the Omicron strain, as well as concerns about the demand forecast for downstream Tetrahydrofuran had a detrimental influence on the sectors in December.
For the Quarter Ending September 2021
North America
During Q3 2021, PBAT resin prices surged significantly across North American region, backed by the steep climb in prices of major feedstocks Adipic Acid and Butanediol (BDO) amidst the modest demand from the downstream sectors. Disrupted supply chain and halted production activities, as a repercussion of Ida Hurricane in US were few of the factors which contributed to the significant surge in PBAT prices. As US imports PBAT primarily from China, due to port congestion in China during August, the overall supply chain remained adversely affected which consequently influenced the price of PBAT in other regions. Thus, limited availability of raw materials and robust demand from the downstream packaging, consumer goods segments intensified the overall pricing trend of PBAT.
Asia
In Q3 2021, prices of Polybutylene Adipate Terephthalate (PBAT) showcased mixed sentiments in the Asian market. At the beginning of the quarter, prices traced downward trajectory due to surplus production in China, Taiwan and South Korea amidst the constricted demand pattern. However, a prominent surge in the prices of PBAT was witnessed in September in several Asian countries, due to the disrupted trade activities from China. Besides, PBAT manufacturers in South Korea and China were heard expanding their production capacities as well as joining hands for the development of greenfield manufacturing facilities to fulfil the global demand for PBAT resin. Thus, moving ahead, prices of PBAT resin are likely to trace stability in the next six months.
Europe
In the European market, a significant rise in prices of PBAT resin was observed in the third quarter due to raw material scarcity and lower imports from US. Additional factors such as surging demand for biodegradable materials for the manufacturing of downstream products along with the elevated prices of the feedstock led to the hike in PBAT prices. Besides, exponential surge in the freight cost across Europe-USA and Europe-Asia trade route due to container shortage also contributed to put forth an upward pressure upon PBAT across the region.
