Ethyl Acetate Market Slumps in Germany and USA as Construction Sector Declines
- 23-Aug-2023 4:42 PM
- Journalist: Patrick Knight
Ethyl Acetate prices in the US market have entered a decline since the beginning of Q3. This shift in the market is primarily driven by diminished demand from the construction sector. Similarly, within the German market, Ethyl Acetate prices are steadily decreasing, attributed to the sluggish performance of the downstream construction industry, exacerbated by a weakened economic outlook. However, a contrasting trend is observed in the Chinese market, where prices are experiencing a sharp upward surge. This escalation results from a significant increase in the cost of the feedstock Acetic Acid in the Chinese market, compounded due to the limited supply of the Acetic Acid feedstock material. These distinct supply and demand patterns generate divergent price trends between the Western and Asia-Pacific markets.
The US Ethyl Acetate market is declining due to the construction industry's underperformance. Dow, a major player in the downstream construction sector, reported lackluster results in its Construction Chemical business compared to the previous year. Methanex noted that upstream Methanol prices dropped in Q3, reducing Acetic Acid prices and lowering production costs for Ethyl Acetate. Stable natural gas prices also kept energy-related production costs steady, dampening the Ethyl Acetate market. Furthermore, procurement of new orders was on need on-demand basis.
Throughout Q3, the German Ethyl Acetate market witnessed a consistent price decline. This drop was influenced by the decreased prices of upstream Methanol and reduced demand from the downstream industry. According to Methanex's report, Ethyl Acetate prices remained stable in Germany during Q3, resulting in limited market expansion. Additionally, Huntsman, a significant industrial player in Europe, reported a sales decline in Q2, which was primarily attributed to the ongoing slowdown in construction activity across the European region. This trend persisted into Q3. The deceleration in the construction sector was fuelled by a high-interest rate of 4.25%, which continued to hamper the purchasing power of consumers in the downstream industry.
According to the ChemAnalyst Database, the Ethyl Acetate prices in the US market are anticipated to rise due to increased demand from the downstream industry. Additionally, the feedstock Acetic Acid prices are expected to increase further, leading to improvements in Ethyl Acetate prices. A similar pattern is projected for the German market, driven by an improved economic situation that is likely to boost demand from the downstream construction industry, causing import prices to rise. This, in turn, is expected to contribute to price increases in the German Ethyl Acetate market.