Why PBT Raw Material Prices for Brush Filaments Increased Sharply in 2021
Why Did PBT Raw Material Prices Increase for Brush Filament Production?
The year 2020 was marked by global disruption due to the COVID-19 pandemic. While 2021 brought economic recovery, it also introduced new complexities. After the Chinese Spring Festival in early 2021, manufacturers across the brush filament industry experienced a sudden and sharp rise in the cost of PBT and PET raw materials.
After consulting with our raw material suppliers, we identified the following key reasons for the significant price hike:
Shortage of Butylene Glycol (BDO)
One of the core components of PBT is butylene glycol. A severe shortage in this chemical directly impacted PBT production.
Production Limits in Western China
BDO is primarily produced in Western China. Due to environmental regulations and ongoing equipment maintenance, output has been severely restricted.
Rising Demand from Degradable Plastics
In response to China’s increased regulations on traditional plastics, the demand for degradable plastics has surged. Since butylene glycol is a major raw material for degradable plastics, this shift has intensified competition for limited supply.
Crude Oil Price Surge
PBT is a downstream product of petroleum. As global oil prices increased, the cost of PBT naturally followed.
Limited Output from Overseas Petrochemical Plants
Many petroleum plants outside of China have not resumed full operations post-pandemic, contributing to a tighter global supply chain and reduced PBT availability.
Post-Pandemic Market Adjustments
In 2020, BDO producers operated at a loss. In 2021, many have raised prices under the justification of equipment maintenance and to recover previous financial losses.
When Will PBT Prices Return to Normal?
According to our suppliers, it is unlikely that PBT prices will return to 2020 levels. However, there is cautious optimism that prices may stabilize to near-2019 levels by September 2021, depending on how the supply and demand dynamics evolve. Like global freight rates, the recovery process will take time due to disrupted supply chains and capacity constraints.
Additional Note
Major global chemical manufacturers have also issued statements explaining the situation, further confirming the above market trends.
