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Anticipated Improvements in Butyl Acetate Price in Q1 2024 for Both US and Germany
Anticipated Improvements in Butyl Acetate Price in Q1 2024 for Both US and Germany

Anticipated Improvements in Butyl Acetate Price in Q1 2024 for Both US and Germany

  • 17-Jan-2024 2:35 PM
  • Journalist: Stella Fernandes

Texas (US): Throughout the current week, Butyl Acetate prices in the US market have remained stable, largely influenced by the absence of strong cost support from its primary feedstock, Acetic Acid, which has maintained consistent pricing. The presence of a 5.5% high-interest rate has contributed to a decline in the purchasing power of consumers in downstream industries. Furthermore, production costs have remained at lower levels due to a decrease in Natural Gas prices, reflecting sluggish market transactions. International demand has stayed subdued, leading to lower prices due to ample inventories. Fortunately, no significant disruptions in the supply chain have been reported this week. Predictions suggest that Butyl Acetate prices in the US market are poised to increase, driven by the upward movement in Butyl Acetate’s Feedstock Acetic Acid costs. Expectations also point towards robust demand from the downstream industry, particularly in the construction sector, fuelled by an improved economic outlook. Additionally, the anticipation includes restocking activities that are expected to contribute to a boost in Butyl Acetate’s inventory prices in the domestic market.

In the German market, the pricing of Butyl Acetate throughout the current week has remained stable, mainly influenced by reduced demand from downstream industries, especially those associated with Butyl Acetate, widely used in the construction sector. Import prices from China have also held steady, increasing cost pressures and leading to lower prices for Chinese imports. Importantly, there have been no significant disruptions in the supply chain reported this week. Future projections indicate sustained and robust demand from downstream industries, particularly in the construction sector, where Butyl Acetate and Ethyl Acetate play a significant role, driven by an improved economic outlook. Additionally, expectations include restocking activities contributing to an increase in inventory prices in the domestic market. Furthermore, the prevailing high-interest rate, set at 4.5%, continues to limit the purchasing power of consumers in Butyl Acetate’s downstream industry. Anticipations suggest that, with improved economic conditions, demand from the downstream industry, especially the construction sector, is likely to experience an increase.

Regarding supply dynamics, the Butyl Acetate plants have maintained a consistent operational rate, fuelled by ongoing demand from downstream industries. Additionally, the Purchasing Managers' Index (PMI) value has remained below 50, indicating a contraction in the manufacturing sector. In terms of demand, there is a significant decrease in interest from downstream industries, particularly construction. Moreover, there is an expectation of a robust upswing in the Butyl Acetate downstream construction industry, anticipated to begin in Q1 2024.

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