Supply continued to increase in Europe in December as demand remained soft. The increases in imports from Asia added even more pressure on produces.
A deeper slowdown in demand at the end of the year due to players running down stocks worsened the oversupply.
However, while an end to destocking will help take some of the surplus out of the market in January, the market is unlikely to become balanced any time soon.
This is because trends that have given rise to the current oversupply will likely continue to worsen, certainly in the case of economic slowdowns.
And in the case of imports, a rebound in China is also not expected, and with infections rising and threatening to slowdown the economic activity, volumes should continue to flow from the region.
Meanwhile, gas prices have fallen below €100/MWh but remain volatile and seem to be sensitive to weather conditions.
This means another cold snap could bring about another spike in energy costs. This will be disastrous for households and businesses, and indeed players in the chemical industry.
The market update is an exerpt fromt the monthly report.
The GC Intelligence™ Polybutylene Terephthalate (PBT) Market Prices, Forecasts, and Analysis report is published during the first month of every quarter. The report contains market analysis, prices and forecasts of several grades, namely GF30 FR, GF30 and Unfilled PBT.
- GF30 FR