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.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American PBAT market experienced a series of price fluctuations, reflecting the complex interplay of market forces. January saw a notable 5% surge in prices due to increased reliance on imports from Asia, highlighting supply chain vulnerabilities.
However, February witnessed a 3% decline in prices as demand softened amidst economic uncertainties. Lower component prices helped alleviate production costs, exerting downward pressure on PBAT prices.
In March, prices rebounded by 6%, buoyed by growing demand from sectors like biodegradable packaging and automotive applications. Stockpiling activities and import dependence further contributed to the price uptick.
Overall, Q1 showcased dynamic price movements influenced by shifting supply-demand dynamics and economic conditions. Strong demand from various industries, driven by environmental concerns, strained by limited domestic production capacity and supply chain disruptions, led to price increases.
Seasonality also played a role in the price changes in Q1. The quarter saw a 9% decrease in prices compared to the same quarter last year. However, there was a 4% increase in prices compared to the previous quarter in 2024. This indicates a positive trend in pricing, with prices gradually increasing over time.
Furthermore, there was a notable price difference between the first and second half of the quarter, with prices increasing by 9%. This suggests that the pricing environment in the USA was becoming more favorable towards the end of the quarter.
In conclusion, the pricing environment for PBAT in the North America region in Q1 2024 was positive. The latest quarter-ending price for PBAT in the USA was recorded at USD 1796/MT CFR Los Angeles.
APAC
In the APAC region, Polybutylene Adipate Terephthalate (PBAT) prices exhibited a mixed trend during the first quarter of 2024. In January, prices increased by 1% due to a combination of factors including supply scarcity, rising feedstock costs, logistical challenges, and strong demand driven by environmental awareness and government support.
However, in February, PBAT prices experienced a notable 4% decline. This decrease was attributed to increased production rates, ample availability of Butanediol (BDO), and stable supply conditions, particularly in China, despite ongoing global shipping delays and production issues.
In March, PBAT prices rebounded, showing a 4% increase. This upward trajectory was fueled by growing demand stemming from environmental concerns, limited production capacity, and scheduled maintenance shutdowns at manufacturing plants. Additionally, rising export demand to the USA and Europe contributed to the price hike, reflecting the dynamic and multifaceted nature of the APAC PBAT market.
China has experienced significant price changes for PBAT. Overall trends in the Chinese market have shown a positive pricing environment, with prices increasing by 13% from the previous quarter and 7% from the first half of the quarter. Compared to the same quarter last year, prices have decreased by 2%.
The latest quarter-ending price for PBAT in China is USD 1603/MT, FOB Qingdao. This price reflects the overall increasing sentiment in the market and suggests a positive pricing environment for PBAT in the APAC region.
Europe
In Q1 2024, Polybutylene Adipate Terephthalate (PBAT) prices in the Europe region exhibited an overall increasing trend, although they initially declined. In January, PBAT prices in Germany experienced a 2% decline. This drop was attributed to increased production in Asia, particularly in China, which resulted in a surplus in global supply, surpassing demand in Europe. Additionally, lower feedstock prices and logistical challenges, compounded by reduced consumer goods demand, contributed to the downward trend.
However, in February and March, PBAT prices in Germany surged by 4% each month. This increase was driven by heightened demand and exports, coupled with regulatory initiatives such as the European Green Deal, which aimed to promote packaging circularity. Despite stable raw material costs, manufacturers faced challenges due to supply constraints, underscoring the importance of vigilance and adaptability for sustained growth.
Throughout the quarter, several significant factors influenced market prices. The tightening global supply of PBAT, alongside increasing demand from sectors like packaging and automotive, contributed to the price rise. Limited production capacity, disruptions in the supply chain, and fluctuations in key raw material prices, such as adipic acid and butanediol, also played a role in driving prices higher.
Among the European countries, Germany has witnessed the maximum price changes. The price of PBAT in Germany has shown a significant increase from the same quarter last year, with a percentage change of -1%. The price change from the previous quarter in 2024 is recorded at 4%. There has been a notable price difference between the first and second half of the quarter, with a percentage change of 9%. The latest quarter-ending price of PBAT in Germany is USD 1926/MT, FOB Hamburg.
Overall, the pricing environment for PBAT in Europe during Q1 2024 has been positive, with prices showing an increasing trend. The strong demand from various sectors, coupled with supply constraints and fluctuations in raw material prices, has contributed to the upward pressure on prices."
For the Quarter Ending December 2023
North America
Polybutylene Adipate Terephthalate (PBAT) prices in the North American market exhibited a mixed trend in Q4 2023. The quarter commenced on a bullish note, characterized by moderate supply and high demand from downstream industries. However, the market sentiments turned bearish due to lower demand in downstream packaging markets and destocking storage in Asian markets post-festive season.
Additionally, the strengthening of the US dollar and economic uncertainty led to a decrease in overseas orders for packaging markets, further impacting the PBAT industry. The ongoing conflict in West Asia and escalating energy prices added to the market's uncertainty. Nevertheless, a decrease in upstream petrochemical production and stock, along with lower freight charges, supported a price drop. The US government's allocation of USD 1668 billion to the National Advanced Packaging Manufacturing Program (NAPMP) created opportunities for PBAT manufacturers in downstream packaging industries.
The price of Polybutylene Adipate Terephthalate CFR Los Angeles in the USA for Q4 2023 assessed at USD 1668/MT.
APAC
Polybutylene Adipate Terephthalate (PBAT) prices in the APAC region have experienced a mixed performance in Q4 2023. The market situation has remained stable as upstream prices for PTA, adipic acid, and butane diol have stayed consistent amid sluggish growth in petrochemical capacity due to uncertainty in the crude oil market. Despite the stability in upstream prices, the beginning of the quarter saw subdued downstream demand, and a decrease in overseas orders exerted pressure on prices. The decline in freight rates also contributed to the overall price drop. The West-Asia conflict escalation posed a risk of energy price hikes, while China's recovering economy may support a PBAT price increase. In China, the market has been bearish with moderate supply, especially in the packaging industry, which witnessed low demand post-festive season. An increase in upstream petrochemical production and stock was expected to facilitate a price drop, further supported by a decrease in freight charges. The correlation price percentage in Q4 2023 was -34%, compared to the same quarter of the previous year. The percentage change from the current to the previous quarter was 0%. The price percentage comparison of the first and second halves of the quarter in China was -5%. The latest price of PBAT FOB Qingdao in China in Q4 2023 is USD 1589/MT.
Europe
The Polybutylene Adipate Terephthalate (PBAT) market in the European region during Q4 2023 has been impacted by several factors. The market situation has been bearish due to subdued demand from the downstream food packaging industry after the festive season. The decrease in the strength of the dollar compared to the Euro has also impacted prices. The escalation of the West-Asia conflict might cause a price hike in energy prices. However, there has been an increase in downstream industry demand amid China's recovering economy, which might support a PBAT price hike. Germany has been a significant player in maintaining the sustainability of the packaging industry and reducing plastic waste. German manufacturers have been diverting from single-use packaging production lines to biodegradable packaging material production, such as PBAT. The price percentage change in Germany from the previous year's same quarter is -33%, and the price percentage change from the current to the previous quarter is -9%. The price percentage comparison of the first and second halves of the quarter in Germany is -3%. The latest/quarter-ending price of PBAT FOB Hamburg in Germany in Q4 2023 is USD 1825/MT.
