European polybutylene terephthalate (Q4) contract prices are under upward pressure due to rising raw material prices and Asian prices.
One producer said that prices of p-xylene (PX) and purified terephthalic acid (PTA) in Europe have risen, which may lead to a rise in PBT prices in the fourth quarter of this year.
Due to the rising price of PX and PTA, the cost increases, and the spot price of PBT in Europe rises, which may also bring upward pressure on European prices.
Sources expect that the price of unfilled PBT is expected to be slightly higher than the price of filled PBT due to the higher proportion of unfilled PBT resin.
The settlement price of raw material butanediol (BDO) in the fourth quarter will also have an impact on PBT prices. It is expected that BDO price negotiations will begin soon.
According to sources, the supply of PBT continues to be tight, and imports from Asia are limited. On the other hand, demand for PBT remains strong, with one producer saying that demand has not decreased in August. For many markets, the market in August is relatively calm.
Earlier Wednesday, the European Automobile Manufacturers Association (ACEA) confirmed that the automotive industry, as the main end market for PBT, had a solid market activity in July and August.
However, German auto Volkswagen (VW) warned at the beginning of the month that the EU's car sales in September may fall sharply compared with August.
According to ACEA, the automotive industry usually has a quiet market in August, but the introduction of the globally unified Light Vehicle Test Program (WLTP) has been applied to all new car registrations since September 1, so sales in August may grow rapidly.
ACEA said: 'Therefore, some car manufacturers offer pre-WLTP cars at attractive prices.'
Due to strong demand and tight supply, the PBT contract price in the third quarter rose by 0.05 Euro/kg.
The price of unfilled PBT is 2.97-3.23 Euro / kg FD (destination delivery price) NWE (Northwest Europe).
The price of filled PBT is 3.23 - 3.34 EUR / kg FD NWE. The price of flame retardant PBT is 4.45 - 4.51 EUR / kg FD NWE.