Polybutylene terephthalate (PBT) prices fell steadily between February and mid-May in northeast Asia and India, falling from more than $2.10/kg CIF to below $1.98/kg CIF NE Asia/India over the period, tracking subdued demand in downstream user markets.
Although an upswing in feedstock butanediol (BDO) and purified terephthalic acid (PTA) spot prices and restocking by buyers in January lent support to an increase in PBT prices in early 2013, PBT demand and outlook are likely to remain weak because of the global economic uncertainty and bearish market outlook.
A number of facilities in Asia, mainly China, which commenced operations in early 2013 or are scheduled to start up later in the year, are expected to weigh further on market sentiment amid dull demand.
Market participants continued to point out that the bigger market was in the compounded segment. The natural-grade PBT is usually compounded with ingredients such as glass fibre to create electrical end-products that are allocated for exports.
Updated to mid-May 2013