Butyl Acetate Prices to Roll Over in China
- 07-Jun-2022 4:26 PM
- Journalist: Nina Jiang
Tianjin, China: The Butyl Acetate market has been mirroring last week's trend in the first week of June and is not showcasing any significant fluctuations in its price value. Though feedstock acetic acid prices have been soaring in China's domestic market due to supply tightness and the ongoing shut down of major manufacturing plants, it has not been impacting the Butyl Acetate market notably. Like Butyl Acetate, another Acetic Acid derivative Polyvinyl Alcohol has also been demonstrating a stable pricing trend with insignificant fluctuations. Since the feedstock has been surging in the considered period, considering upstream as the contributing factor is out of the question for now. Then, what?
As the covid-19 related conditions are finally being settled in China, followed by easing lockdown restrictions, several ports that were earlier halted have finally opened. The congestion in important ports has also been reduced, leading to more trading activities in the country. Amidst rising market and trading activities, the demand for Butyl Acetate is also recovering day by day. Currently, the downstream demand for Butyl Acetate from end-user industries is somewhat okay, and the supply also corresponds with the demand.
The primary factor keeping the price value of Butyl Acetate steady is a sufficient level of inventories. The manufacturers already have adequate stocks to cater to the overall generated demand. Hence, the ongoing supply hamper has not impacted the Butyl Acetate market. Likewise, the Acetic Acid price hike has not been influencing as well because the inventories are already full, so there is no need for new productions lately.
As per ChemAnalayst anticipations, "The Butyl Acetate market would showcase positive market sentiments in the upcoming weeks owing to strong downstream demand and escalating feedstock prices. Since the estimations suggest that the feedstock Acetic Acid would be surging in the forthcoming weeks, it would augment the manufacturing cost, and eventually cause the increment in price value of Butyl Acetate."