Deterred Feedstock Acetic Acid Prices Slumped the Market of Butyl Acetate in Germany
- 03-Mar-2022 2:40 PM
- Journalist: Harold Finch
In this week, the prices of Butyl Acetate slipped to $2185/ton FD Hamburg and $2455/ton FOB Bremen with a week-on-week declination of 3.4% and 3.2% respectively. Despite the supply disruption of Natural Gas, feedstock Acetic Acid costs in Germany was also affected and the prices were observed to be hovering around $618/ton FD Hamburg- $660/ton FD Hamburg.
European Methanol market was observed to be debilitated after its utilization was disrupted in gasoline destined for Nigeria, restricting Methanol purchasing by gas blenders in Germany. Acetic Acid prices were also deterred by weak market sentiments and sufficient product availability keeping its derivative market weak including Ethyl and Butyl Acetate in the regional market of Germany. Natural Gas supply however remained constrained, and it was also heard that Nord Stream 2 AG, a subsidiary of Russian state-owned gas company Gazprom had terminated contracts with employees following the recent international development promoting the burden of US endorse on the organization. On 2nd March, Wintershall Dea, a German oil and Gas company write off its $1.1 billion investment in Nord Stream 2 pipeline citing Russian aggression in Ukraine. Downstream Paint and Lacquer industries in Germany are heard to operate moderately with the increase in consumption of products according to the consumer’s demand.
According to ChemAnalyst, “the prices of Butyl Acetate in Germany is expected to increase with low inventories and surging demand. However, the vessel delays will remain a significant problem in Asia-Northwest Europe and the rates will continue to increase in the upcoming weeks. Feedstock Acetic acid and Methanol prices are also expected to increase with strong market sentiments and surging demand. The crippling availability of Butyl Acetate will more likely to observe in the regional market of Germany. Downstream Paint industries will also grow with the increase in production costs among the enterprises.