The US 1,4-Butanediol (BDO) market is experiencing a great deal of downward pressure because of continued oversupply; weak global fundamentals and sagging downstream consumption consequently. While domestic production levels are steady; and Gulf Coast cracker and feedstock system operations maintain a steady state of efficiency and functionality; US BDO is under intense price competition from lower cost international producers. Converters have backed off from restocking due to fears of an impending holiday slowdown, which has resulted in an additional decline in demand, as well as driving sellers into a highly competitive buyer driven market. Several analysts have observed that this is reflective of the increasing stress on the wider petrochemical sector due to growing global overcapacity as well as restructuring pressures. DS Segments (PBT, THF, PTMEG, and spandex) also report limited activity; further weighing on BDO fundamentals. Thus, in the absence of any rebound in these segments of the market, the US BDO market is likely to remain highly volatile and with very limited near-term recovery.
Selenis has effectively manufactured recycled PET chips using terephthalic acid sourced from Circ®, a textile-to-textile recycler based in Virginia. The chip production took place through a series of batches at Selenis' pilot plant in San-Giorgio, Italy. By utilizing inputs recovered from polycotton textile waste, Selenis has created high-quality PET chip, which has been further processed into DTY yarn. This yarn will play a crucial role in product development as Circ prepares for additional capsule launches. Selenis is leveraging the success of this initial collaboration phase and is committed to advancing towards an offtake partnership to support Circ's inaugural industrial facility.
Eduardo Santos, Head of Corporate Strategy at Selenis, remarked that the monomer synthesis showed a performance comparable to virgin terephthalic acid. He expressed optimism about the consistent quality of Circ's monomer output and anticipated future commercial success. Santos pointed out that the Circ partnership complements Selenis's existing mission and goals for a more sustainable textile industry. He further stated their anticipation of expanding upon this collaboration and providing support for Circ's forthcoming commercial production trials.
