Butyl Acetate Prices Show Stability in US and German Markets Amid Fluctuating Economic Conditions
- 12-Sep-2023 3:58 PM
- Journalist: Gabreilla Figueroa
The prices of Butyl Acetate in the US market have been stable as of this week. This development was instigated through limited cost support from the primary raw material, Acetic Acid. Additionally, the Construction industry's demand for Butyl Acetate has weakened due to the prevailing high-interest rates, which have surged to 5.5%. These elevated interest rates have resulted in a loss of market confidence and reduced demand from downstream consumers in the construction sector, further leading to a decline in demand from the Butyl Acetate market. As a result, these factors have combined to maintain consistent prices for Butyl Acetate throughout the week. Additionally, on the production front, Natural Gas prices have remained steady, contributing to a constant production cost.
The prices of Butyl Acetate in the German market have shown a consistent trend over the current week. This stability can primarily be attributed to a decline in the prices of its key raw material, Acetic Acid. Moreover, there has been a decrease in market activity, influenced by high inflation, which has surged to a rate of 6.1%. Additionally, demand from the construction industry has remained subdued, contributing to the overall stagnation in the Butyl Acetate market. Notably, BASF, a significant player with an annual operating capacity of 90,000 MT, was undergoing maintenance turnaround procedures during this period in Ludwigshafen, Germany. Furthermore, in response to government inquiries, major building firms have indicated plans to reduce sales prices, further underscoring the weak demand in the construction sector and the efforts of building firms to stimulate market transactions in Germany.
According to the ChemAnalyst database, there is an anticipation of rising prices for Butyl Acetate in the US market. This potential increase in the prices of Butyl Acetate is likely to be driven by the upward trend in the prices of the essential raw material, Acetic Acid. Furthermore, the demand from international markets such as Mexico and Canada is expected to remain strong, exerting continuous demand pressure on the international market. In the German market, Butyl Acetate prices are also expected to climb. This expected price increase can be attributed to several factors, including the rising import prices and increased market activity associated with the festival season in the European market. Additionally, there is an expectation of increased costs for Natural Gas, which will likely lead to higher prices for LNG (Liquefied Natural Gas), resulting in higher production costs for Butyl Acetate.