For the Quarter Ending March 2022
North America
Prices of Polybutylene Terephthalate (PBT) remained in the narrow range during the first quarter in the North American region. The demand from the downstream automotive and electronics sector remained depressed throughout the quarter, due to which PBT prices dropped by 7%, especially in February. Feed Purified Terephthalic Acid (PTA) prices increased during first half and diminished in the second half of the first quarter. However, feed Butanediol prices increased continuously in the US market. Prices were accessed at USD 2340 per tonne on FOB basis at New York in North America by the end of February, witnessing a decrement of 10% in the values from the last quarter of 2021.
Asia Pacific
Prices of Polybutylene Terephthalate dropped initially during Q1 and recovered during March in China, following the price trend of feed Butanediol. PBT prices settled at USD 2405 per tonne at the end of the quarter in the Chinese market. The feed PTA values increased in the Chinese market during Q1. Prices remained firm in the Indian market during the first two months amidst the stable demand from the automotive sector. The demand dropped in March after disrupted supply chain due to the war between Ukraine and Russia. However, feed Butanediol and PTA prices steadily increased during Q1.
Europe
Prices of Polybutylene Terephthalate were stable to firm till first half of the quarter. The feed PTA prices dropped in January and rose in March. PBT prices in Europe fluctuated in the range between USD 2600-2900 per MT in Q1-2022. The demand from the downstream automotive and electronics sector remained stable throughout the period. Limited supply of feedstock impacted the production rates towards the end of Q1. Shortage of crude oil during the second half of Q1 due to war in the East European region caused limited supplies of raw material which increased the production cost of PBT in the market towards the end of the quarter.
For the Quarter Ending December 2021
North America
Limited imports of PTA from Mexico along with consistently rising costs of 1,4 butanediol curtailed production rates while keeping downstream PBT prices on an incessant uptrend throughout the last quarter. On demand side, volume intakes from electrical and electronics sector remained robust while consumption intakes from automotive sector were sluggish due to hampered vehicle production. Snug supply amid healthy demand from downstream industries increased prices of the available material in the last quarter of 2021.
APAC
Increased prices and limited availability of feedstock butanediol and Purified terephthalic Acid (PTA) resulted in curtailed production rates of Polybutylene terephthalate during H1 of Q4. Demand of PBT remained strong throughout the quarter as PBT forms staple for electrical and electronic goods. China has one of the largest consumer electronics markets and consequently, consumption of PBT remained robust throughout the quarter. Snug supply amid healthy demand from downstream industries kept an upward pressure on the available materials. Therefore, prices rose during first two months. Indian PBT market depends heavily on exports from China and other Asian nations and production disruptions in China resulted in tightened supply fundamentals in Indian domestic and hence prices rose consistently from INR 301000 per MT in October to INR 314850 per MT in November on Ex-location basis. China PBT market eased towards H2 of Q4 as feedstock prices eased which translated into cheaper exports and consequently, PBT prices dropped in India to INR 280450 per MT on Ex-location basis in December.
Europe
In Q4, European PBT prices remained on an uptrend owing to healthy demand from downstream industries, rising cost of production and snug supply of feedstocks. Demand fundamentals were robust stemming from improved consumption from electronics sector. Skyrocketing energy cost culminated in increased cost of production along with rising cost of feedstocks. PBT faced competition from PET for PTA availability as both polymers require PTA in hefty quantitates for production. Butanediol availability also remained short due to limited production and curtailed imports.
For the Quarter Ending September 2021
North America
The overall market outlook of PBT strengthened during the third quarter in the North American region backed by the firm demand from the downstream electronic and automotive industries. Increased construction activities across the US propelled the demand for PBT throughout the quarter. After the occurrence of Hurricane Ida in September that made landfall in Louisiana, a large number of manufacturing units went offline which disrupted the production of PBT on a large scale. Plunge in raw material prices remained a key concern of the regional producers during the quarter.
Asia Pacific
Prices of PBT rose effectively in the Asia Pacific region in the third quarter of 2021. Since PBT is majorly imported from China, its prices observed a consistent increment throughout the quarter due to soaring freight rates and disrupted supply caused by the Delta variant related port restrictions. As the demand from the downstream automotive industry actively rebounded after the resumption in market activities, it further supported the hike in PBT prices during the last week of August. In India, prices of PBT Injection Moulding grade escalated from USD 3690/MT to USD 3832/MT from July to September.
Europe
The European PBT prices noted an upward trajectory during the third quarter of 2021. Increased prices of upstream butanediol (BDO) in the region led to the increment in the prices of PBT in Q3 of 2021. The demand remained bullish throughout the quarter from the downstream automotive industry and electronics sector. Increase in construction activities further supported the demand for PBT across the region.
For the Quarter Ending June 2021
North America
During the second quarter in 2021 PBT supplies in the North Americas region were balanced due to the pickup in the industrial manufacturing after the petrochemical industry faced a major operational setback due to winter storm disruptions in Q1. As the North American region increased the construction activities amid the peak demand season, PBT demand proportionally surged in Q2. Offtakes were also constant from the automotive and electronics industry as the buying sentiments rose with vaccine optimism. As a repercussion of high demand in the downstream market, PBT prices continuously rallied upwards with FOB Texas offers trading at USD 5240 per tonne in June.
Asia Pacific
Polybutylene Terephthalate (PBT) market outlook varied in different parts of the Asia Pacific in the second quarter of 2021. Despite several turnarounds at major producing facilities in China, supplies remained balanced owing to ample availability of feedstock BDO in Q2 2021. However, demand slumped in India in the first half of the quarter as the demand was severely impacted by the second COVID wave which pressured the production rates along with restricted market movement. Hence traders were reluctant to keep the inventory levels high. As a ripple effect, PBT pricing trend in the Indian market stabilized with Ex-Works Kandla offers in June assessing at USD 4144 per tonne. The ease in semiconductors shortages helped in pushing the automotive manufacturing, thereby supporting demand from the automotive sector.
Europe
PBT supplies in the European region witnessed a gradual improvement, but the overall market outlook remained tight in the second quarter in 2021. The shortages of the upstream BDO restricted the production by certain margins. Furthermore, the situation was exacerbated due to the declaration of force majeure by several manufacturers and delayed imports. PBT demand was exceptional in the second quarter due to seasonal hike in the construction activities further supported by spike in the automotive production.
For the Quarter Ending March 2021
North America
The US PBT production stood restrained due to low availability of feedstock BDO during Q1 2021. LyondellBasell declared force majeure at its propylene oxide (PO) plant at Texas, that curtailed the production of its derivative BDO across the region. This force majeure tightened the supply of feedstock BDO which ultimately affected the production of PBT. Meanwhile, price increase in BDO and its derivatives by BASF during December 2020 which became effective from 1st January prompted consumers to pay more. In addition, BASF further announced positive revision in its BDO prices of its derivatives PBT.
Asia
The Asian market saw upward trend in demand for PBT during Q1 2021. Consistent rise in the Indian demand enhanced the market sentiments that pushed up the prices of PBT during the quarter. CFR JNPT price of PBT rose to around USD 1353 per MT in March 2021. Container shortage and congestion at several Europe-Asia routes forced the prices to shoot up consistently in the past few months. Lunar New Year holidays in China created low availability for PBT, firm demand from the domestic market supported the price curve.
Europe
Europe had to face low PBT availability during Q1 2021. Feedstock BDO supply remained tight in the European countries that supported its prices. LyondellBasell’s PO manufacturing unit at Rotterdam faced forced majeure due to some technical issues, that reduced the availability of feedstock PO which ultimately restrained the PBT supply. Demand remained robust, with rise in automotive manufacturing across the region.
