Firm Downstream Demand Improves European Polybutylene Adipate Terephthalate (PBAT) Prices

In the European market, the price dynamics of Polybutylene Adipate Terephthalate (PBAT) witnessed a northward trend amidst rising concern over the degrading environment and increased end-user demand. According to buyers, countries like Italy and France have increased PBAT production and its derivatives in the domestic market due to their biodegradable and ductile behavior. The European PBAT prices strengthened from the previous month, varying between USD 4140 to 4450 per MT, FD Marseille in France.

Rethink Plastic Alliance is led by joint junctions of profound European NGOs having supporting members in many European countries. According to the market participants, countries like France, Sweden, and Portugal have laid down laws such as a ban on serving food items in plastic cutlery and packing fruits and vegetables in supermarkets. With the increase in demand from end users, the production rate of PBAT in European countries has increased. Facets such as an increase in feedstock, adipic acid prices in the European market, and high energy prices have proportionally raised the productional cost, directly impacting the final PBAT prices in the region. The cut of natural gas supply from Russia to European countries has led to energy shortage and skyrocketed the energy prices in the regional market.

Another face of the report showcased how many countries have still not implemented any strict rules and regulations regarding the plastic ban and adapting PBAT and its derivatives in daily life. Countries such as Finland, Romania, and Poland are still blaming the packaging manufacturers and the consumers and not taking any measures to ban non-biodegradable plastics in their respective markets. According to the official statements from NGOs, the government must stand up and implement strict rules and regulations regarding plastic consumption. 

As per ChemAnalyst, awareness among society, school students, and implementation of stricter rules in European countries will contribute significantly to increasing the demand for PBAT in the European market. Increased feedstock prices and government actions will govern the European PBAT prices.