[PBT Weekly Review] No Positive Fundamentals Released for PBT, Dragging Market Decline Continues

1. Weekly Market Review

The East China PBT market continued its downward trend this period, with mainstream prices for medium and low viscosity PBT resins closing at 7,900-8,300 RMB/ton in the East China region. On the supply side, Nantong Xingchen's PBT unit is under maintenance, while other units previously under maintenance have resumed operation, resulting in an overall increase in supply. On the raw material side, the BDO market continued to decline this week, while the PTA market showed a weak rebound. The overall cost support weakened this week, with consecutive drops in BDO having a significant impact on market sentiment for PBT. From feedback from downstream and end users, the main downstream sectors of PBT are greatly affected by the off-season demand, with a noticeable decline in overall operating rates and a continuous reduction in raw material consumption. The PBT market fundamentals show no positive signals, and market participants' sentiment is bearish, dragging the market focus to continue its downward trend.

2. Analysis of Market Influencing Factors

① Most PBT maintenance units on the supply side have started operation, resulting in an increase in supply volume.

The demand side continues to be affected by the off-season, leading to a decline in downstream and end-user operating rates.

The continued weakness in raw material prices has significantly impacted market sentiment for PBT.

3. Market Forecast for Next Week

The PBT market price is expected to be weak and declining in the next period, with insufficient cost support and increased production on the supply side. In the short term, the PBT market lacks positive incentives, and market prices may continue to be weak. Key focus: 1. Supply side. The PBT facilities have not changed much, and the supply continues to accumulate. 2. Demand side. The demand side continues to be affected by the off-season, with downstream and terminal replenishments mainly driven by just-in-time needs, and there may be opportunistic purchasing at low prices. 3. Cost side. The PTA market continues its weak and volatile pattern; the imbalance in BDO supply and demand is intensifying, which is expected to shift the market focus downward, further weakening support for PBT market prices.