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German Ethyl Acetate Prices Ease in November 2023 Following October Peak
German Ethyl Acetate Prices Ease in November 2023 Following October Peak

German Ethyl Acetate Prices Ease in November 2023 Following October Peak

  • 22-Nov-2023 6:07 PM
  • Journalist: Robert Hume

Hamburg (Germany): This week, Ethyl Acetate prices in the German market have witnessed a declining trend, primarily attributed to subdued demand from downstream industries, notably the construction sector. Germany's Ethyl Acetate downstream construction industry faced significant challenges, with over 22% of surveyed companies reporting the cancellation of residential construction projects in October 2023—an unprecedented record high. Additionally, 48.7% of respondents cited a lack of orders, reflecting an increase from the previous month's 46.6% and 18.7% from the previous year. Expectations for the residential construction industry hit an exceptionally low point, as noted by the ifo Institute. Concerns are further amplified by data such as the latest construction PMI survey for Germany, conducted by the Hamburg Commercial Bank, which recorded its lowest level in three and a half years at 38.3, indicating a decline from the previous month. Chief economist at Hamburg Commercial Bank, Cyrus de la Rubia, expressed a grim outlook, stating, "Things continue to go from bad to worse in Germany's construction sector, with the housing sector experiencing a rapid downturn."

In the realm of domestic supply, Ethyl Acetate plant operations have maintained stability, primarily driven by a decrease in demand from vital downstream sectors, especially the Ethyl Acetate downstream construction industry. Furthermore, there is a noticeable decline in the prices of the crucial feedstock, Acetic Acid. The downward trend in demand from downstream industries, particularly in Ethyl Acetate downstream construction, is exerting additional pressure. Moreover, the Purchasing Managers' Index (PMI) for the Eurozone, standing at 43.10 as of October 2023, signals a contraction in the manufacturing sector. These interconnected factors contribute to a challenging market landscape, highlighting the broader economic challenges affecting the industry.

According to the ChemAnalyst database, there's an anticipation of a decline in Ethyl Acetate prices in both the US and German markets in the upcoming months. This projection is attributed to increased destocking activity and a decrease in the prices of Ethyl Acetate Feedstock Acetic Acid. Additionally, the demand from downstream industries, particularly the Ethyl Acetate downstream construction sector, is not expected to recover in the near term. On the production front, lower prices of Natural Gas are anticipated, contributing to reduced production costs. In the German market, the expectation is for Ethyl Acetate prices to decrease, influenced by lower import prices, especially with a projected decrease in Chinese imports. Consequently, in the upcoming months, Ethyl Acetate prices in the Western market are anticipated to trend lower.

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