Global Butyl Acetate Prices Show Mixed Trends as Variable Market Fundamentals Prevail
- 05-Jul-2023 5:41 PM
- Journalist: Emilia Jackson
The prices of Butyl Acetate in the US market have increased this week due to economic stability, controlled inflation, normalized crude oil prices, and increased demand from the downstream construction industry due to strengthening the US housing market. Meanwhile, prices in the European market were showing a bearish market trend because of the continued high inflation rate in the European market, curbing the purchasing power of downstream industries consumers. Additionally, the prices in the Chinese market decremented as China faced a slow economic recovery due to the slowing down manufacturing sector with the deflation problem. Therefore, these variable market fundamentals are causing flexible price trends worldwide.
In the US market, there have been bullish trends in the Butyl Acetate market this week due to the low inventory level to meet demand from the downstream industry in the US spot market. Furthermore, a significant increase in input production cost as Natural gas prices incremented. Additionally, demand from the downstream industry, like pharmaceuticals, increases due to strong market fundamentals. However, lowering the inflation rate continue to create optimistic market trends.
In the German market, the prices of Butyl Acetate continue to show bearish market sentiments due to a decline in feedstock Acetic Acid prices amid high inflation, which curbed the purchasing power of downstream industry consumers. Furthermore, there was an overflow of Cheap imports from the Asian market. Thus, sellers were bound to offer discounts to increase market transactions.
In China, the Butyl Acetate market showed a stable price trend this week, and this was due to continued weak demand from the downstream industry. Additionally, declining export in the Chinese market and weak economic recovery amid declining international demand has created a pessimistic market sentiment for Butyl Acetate.
According to the ChemAnalyst database, ‘The price of Butyl Acetate in the US market is likely to decrease in upcoming months. This was due to the likely increase in interest rate, which will negatively affect purchasing power of downstream industries consumers. Furthermore, in Europe Butyl Acetate market is likely to expect bullish market trends on the backdrop of improvement in economic fundamentals, declining inflation, and an increase in demand from the downstream industry. Moreover, Natural gas prices are likely to increase, causing an increment in production costs. Similarly, the Chinese Butyl Acetate market is likely to witness positive sentiments on the backdrop of improved economic recovery, and demand from the downstream industry is likely to increase. Furthermore, demand for Butyl Acetate from the international market will also likely increase. Additionally, the input production cost is likely to increment as Coal prices are likely to witness an upward trend.’