Amid declining feedstock Prices Butyl Acetate Prices Take Downward hit
Amid declining feedstock Prices Butyl Acetate Prices Take Downward hit

Amid declining feedstock Prices Butyl Acetate Prices Take Downward hit

  • 27-May-2024 5:47 PM
  • Journalist: Sasha Fernandes

Texas (USA): The fall in US Butyl Acetate prices is associated with lower pricing of its feedstock, acetic acid, and stable upstream methanol prices, while high inventory levels lead to discounted offers Buoyed by reduced backlogs, Butyl Acetate production is up despite a slowdown in US overall manufacturing. However, lower acetic acid feedstock costs and high existing inventory are driving down Butyl Acetate prices, with manufacturers offering discounts to clear excess stock. This price decline reflects a cautious sentiment in the manufacturing sector, as evidenced by the recent drop in the US Manufacturing PMI and reduced purchasing activity due to fewer new orders.

Demand for capacity remained largely unchanged as staffing levels decreased slightly, while purchasing activity increased. Input costs rose sharply due to higher crude oil and metals prices. Looking ahead, Butyl Acetate factories maintained broad optimism about output levels for the coming year, with strong demand from the Butyl Acetate downstream construction industry expected to remain robust. Domestic Butyl Acetate production plants are running at full capacity to keep up with the strong demand from both domestic and international customers downstream. This high level of activity suggests a thriving market for Butyl Acetate, with both local and global applications driving production. 

Domestic plants are running at full capacity to meet strong demand from both domestic and international customers. This surge is likely due to the construction industry's continued strength, despite some challenges. However, the cost of producing Butyl Acetate has remained stable this month. While methanol prices initially fluctuated, they've settled down, thanks in part to Methanex's reported stability. This cost stability has kept a lid on Butyl Acetate production costs in the US. However, it's worth noting that obtaining vendor quotes for Butyl Acetate has become more complex, with some vendors now adding extra fees.

The single-family housing market may be softening, but overall construction demand for Butyl Acetate remains steady, driven by inquiries from various sectors. Government spending in Boston and Houston (potentially due to infrastructure and election activity), alongside a booming US process industry, is offsetting weaknesses in other areas. However, the industry faces headwinds too, including credit market issues, concerns about digital currency and federal spending, unforeseen delays in Jacksonville's projects, and dwindling public funds in Murrieta. Despite these challenges, Philadelphia's report of a strong US market with stable interest rates suggests some overall stability for Butyl Acetate demand.

In the next couple of weeks, Butyl Acetate prices in the US are expected to decline further in the coming weeks amidst stable demand decreasing feedstock costs.

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