For the Quarter Ending December 2022
North America
Consumer sentiment has declined in the US market in the last few months, which has been vindicated by the drop in US Manufacturing Purchasing Index (PMI), which dipped below 50 (i.e., 49.7) in November, signifying contraction in manufacturing and industrial activity. The holiday season further contributed to the weak demand dynamics of several commodities, including Butyl Acetate. Furthermore, Acetic acid (Feedstock) remained sluggish throughout the last quarter, which eased cost pressure over Butyl Acetate. Additionally, demand from paints & coatings and other industries has reported a sharp drop owing to off-season dullness while the material availability has been ample, further easing the prices. Hence, as of December 2022, Butyl Acetate prices were assessed at USD 1950 per MT FOB Texas.
Asia Pacific
In the Chinese market, Butyl Acetate prices have rebounded marginally towards the end of the last quarter of 2022 despite weak demand dynamics. The operating rates of several capacities, including those in Shandong, have been reported at 55-60% hence availing ample material in the market. Domestic players have reported stable level of inventory levels in the market. However, constrained logistics and more than expected drop in the past weeks has contributed towards the bullish turn in the Butyl Acetate prices in the latter stages of the quarter. Thus, as of December 2022, Butyl Acetate prices were assessed at USD 1060 per MT on a FOB basis. Meanwhile, throughout the fourth quarter, Butyl acetate prices dropped continually from October till Mid-December owing to weak demand dynamics amid soft sentiment caused by the sluggish performance of the construction industry and covid lockdowns.
Europe
In Europe, Butyl Acetate prices dropped continuously throughout the last quarter owing to weak demand dynamics, which resulted in sluggish offtakes from downstream industries, including the construction industry, due to off-season dullness. Though, Butyl Acetate prices increased marginally as the prices trend witnessed some light in the Asia Pacific, which also prompted market participants in Germany to improve their margins in the later stages of Q4. Thus, as of December 2022, Butyl Acetate prices were assessed at USD 1780 per MT. Furthermore, IFO has reported that Germany may avert the recession, whose threat loomed large in the previous months.
For the Quarter Ending September 2022
North America
In the North American region, Butyl acetate prices constantly dropped throughout the third quarter owing to weak cost support from the feedstock and sluggish demand from the downstream industries. Meanwhile, supply dynamics remained under pressure as the key exporting port of Houston witnessed port congestion that curtailed the material available in the international market. However, weak demand from the European nations and Asian countries resulted in the limited impact of curtailed supply on the overall prices of Butyl Acetate. Thus, after the conclusion of Q3, Butyl Acetate prices were assessed at USD 2380 per MT on a FOB basis.
Europe
In the European region, Butyl Acetate prices dropped sharply during the third quarter owing to a high inflow of cheap imports from Asian countries, i.e., Malaysia, China, Singapore, and others. Meanwhile, in Europe, domestic production remained under pressure due to the high cost of production as the energy prices drive the operating costs while weak demand ensured limited interest of domestic producers in maintaining operation rates. Furthermore, the supply chain remained under pressure as Europe faced turmoil from port congestions and labor strikes. Thus, after the conclusion of Q3, Butyl Acetate prices were assessed at USD 1991 per MT on an FD basis.
Asia Pacific
Butyl Acetate prices in the Asia Pacific region dropped consistently as the cost pressure remained weak while the demand dynamics from downstream industries deteriorated. China’s battle with Covid continued in Q3 2022 as the market activities remained under constant threat of covid related disruptions. Furthermore, Port activities were also halted due to the rise in covid cases. Meanwhile, Japan and South Korea witnessed supply disruptions as typhoons disrupted trading activities and halted port activities. However, the inventory levels remained stable for the firm owing to weak consumption rates from downstream industries. Thus, Butyl Acetate prices were assessed at USD 1135 per MT CFR Busan.
For the Quarter Ending June 2022
North America
Butyl Acetate prices fluctuated in the North American region during the second quarter of 2022. The prices first inclined till May, then declined in June because of the changing supply and demand dynamics. Flickering energy prices and freight charges supported the situation. The prime factor behind the price surge was inclining upstream cost and strong downstream demand. As the market value of feedstock Acetic Acid inclined in the domestic market, the manufacturing cost escalated, which eventually caused the price of Butyl Acetate to propel upwards. Furthermore, the skyrocketing energy costs and high logistic costs amid Russia-Ukraine war tensions added to its already augmented price value. Moreover, several Acetic Acid producers announced force majeures in the country, which eventually impacted the Butyl Acetate market. In June, as energy costs substantially settled and freight charges reduced, so is the price value of Butyl Acetate. Thus, the evaluated price value of Butyl Acetate was USD 3140/MT FOB Texas in June.
APAC
India and China showcased different market scenarios for Butyl Acetate in the Asia-Pacific region. On the one hand, where prices of Butyl Acetate were continuously declining in China, they fluctuated during the entire quarter in India. In China, the value of Butyl Acetate was slumping due to reduced feedstock Acetic Acid prices, overflowing inventories, and weak demand from downstream industries. Furthermore, the relaxation of congested ports and the ease in freight charges supported the price plunge of Butyl Acetate in China. The assessed price value of Butyl Acetate was USD 1460/MT in June. In comparison, the Butyl Acetate prices declined till May and started increasing in June due to fluctuating dynamics between supply and demand. Conclusively, the evaluated price value of Butyl Acetate was USD 1578/MT Ex-Kandla in June.
Europe
In Europe, the Butyl Acetate market showcased a continuous rise in quarter two of 2022, backed by energy crisis and supply shortages. Due to the feedstock unavailability, the supply of Butyl Acetate became constrained, leading to its price surge. Furthermore, the incremented energy costs and logistic issues amid Russia-Ukraine war tensions contributed readily to the price hike of petrochemicals in the European market. Besides, the demand from the paints and lacquer industries was robust, propelling its prices upward. The prices of Butyl Acetate got assembled at USD 2273/MT in April, which increased to USD 2460/MT in June and showcased a hike of 8.23%.
For the Quarter Ending March 2022
North America
In Q1 2022, the cost of Butyl Acetate slipped because of feeble downstream interest sufficient availability of the product in the domestic market. In the USA, the cost of Butyl Acetate towards the beginning of the quarter was assessed at USD 1388/ton FOB Texas. The declining pattern was observed because frail Acetic acid costs adequate mid stock from the producers. Volatile raw material costs tested the industrial productivity, influencing the butyl acetate derivation market. Significant Ethyl Acetate makers in the USA had expanded Butyl Acetate costs for abroad providers. Exports to Canada and Mexico was reduced in this quarter due to oversupplies in those regions and stable downstream market.
Asia Pacific
In this quarter, the cost of Butyl Acetate in India was hindered by deteriorating demand and feeble market sentiments. The steep cost fall was provoked by a week-on-week plunge in upstream Acetic Acid and Butanol combined with a persistent bearish demand trend. In India, the cost of Butyl Acetate towards the quarter-end was seen to be USD 1347/ton CFR Kandla. Exports from Southeast Asia were likewise reduced with the drooped market environment. In Southeast Asia, spot cargoes at the fundamental ports were muted as the market had adequate stock and deterred demand influencing the trading market. Major downstream paint ventures stayed feeble with lower industrial volume offtakes and product stockpiling in the local market.
Europe
In Q1 2022, the price of Butyl Acetate in Germany towards the end of the quarter was observed to be USD 2363/ton FOB Bremen. The prices slipped continuously in succeeding months due to weak demand its downstream industries and high inventories. Feedstock Methanol market stayed deterred because of a drop in spot interest from Gasoline blending. Acidic acid remained crumbling because of frail interest from its subsidiary market, including Ethyl Acetate. Local producers had likewise decreased the costs for the local market, and the purchasers had kept a watch out for conditions and are anticipated that the prices should slip further. Inventories among the endeavours began to increase, which squeezed the makers to clear their current inventories.
For the Quarter Ending December 2021
North America
In Q4, the prices of Butyl Acetate in North America surged compared to Q2 and Q3 with increase in demand and insufficient supply. Due to plant interruptions in the US Gulf, limited availability of feedstock acetic acid and butanol reduced operating rates and total output of Butyl Acetate. The broader supply chain was also hampered by transportation issues. Throughout the quarter, demand for paints, lacquers, and coatings remained strong, keeping prices on the rise. Butyl acetate is priced at USD 2255 per MT FOB Texas for December and the prices observed to be hovering around $2185/ton-$2320/ton. Freight issue, domestic production problem due to increase in demand from downstream enterprises and tight acetic acid market were the major factor that drive up the Butyl acetate market in US.
Asia Pacific
In Q4, the prices of butyl Acetate remained on the upper end with subsequently decreasing demand with the succeeding months of Q4. In, India, the price of Butyl acetate were $2099/ton Ex-Kandla. The price rose in October with surge in feedstock prices and tightened supply of Butyl Acetate in the domestic market due to scheduled maintenance of various plants have put forth price pressure on the domestic and international manufacturers. However, due to improvement in the production activities in the region the prices dropped gradually. In China, the prices dropped drastically with the lowest hit of $1650/ton FOB Qingdao on 17th December with declining raw material butanol and acetic acid prices. Manufacturers observed oversupply of n-butanol and traders had enough inventories. Consequently, given the weak consumption trend in China, the average operating rates have also observed a decline. Easing fuel prices have stabilized the production costs for the local producers.
Europe
In Q4, the prices surged in the first half and were maxed out with $3880/ton FOB Bremen as the natural gas prices throughout the European region increase due to high electricity surcharge. The supply throughout the region was interrupted due to logistics issues with shortages of truck drivers and port and warehouse workers which impacted the Butyl Acetate market. However, towards December, the prices started to decline due to Sufficient supply and weak market demand which pushed the price trend downwards. In the last week of December, the prices of Butyl Acetate slipped to $3089/ton FOB Bremen.
For the Quarter Ending September 2021
North America
In Q3 2021, Butyl Acetate market experienced an upward trajectory backed by the tightened supply of feedstock Acetic Acid and n-Butanol during this period. Constant surge in the prices of Butyl Acetate was seen in US owing to the constraint availability and firm demand pattern. Shortage in the supply of feedstock was caused as the industrial infrastructure in the US Gulf Coast remained shut due to the severe climate crisis in the region. The inflation in the pricing trend of Butyl Acetate was further supported by high-end demand from paints and coatings, textile and plastics industries. However, with the resumption of industrial operations after the hurricane effects, an improvement in the supplies is anticipated in the coming months.
Asia Pacific
During Q3 2021, an exponential rise in demand for Butyl Acetate was observed in the Asian Market which aided the soaring prices of feedstock Acetic Acid amidst low production rates. In China, due to the shut down of the Ningbo-Zhoushan port for around 12-14 days in August following the zero-tolerance corona virus policy, caused the supply chain disruption that consequently influenced the prices of Butyl Acetate in the region. In addition, scarcity of feedstock Acetic Acid due to the plant outages also contributed to hike the prices of Butyl Acetate. In India, majority of the Butyl Acetate was imported from China hence, congestion on several ports of China along with soaring freight charges fueled the prices of Butyl Acetate in the Indian market. Ex Kandla Butyl Acetate prices were assessed at USD 2178.12/MT in September.
Europe
In Europe, an exponential rise in the prices of Butyl Acetate was witnessed in the third quarter. Moreover, lower imports from US because of Ida hurricane led to the tight supply of upstream n-Butanol and Acetic acid which consequently fumed Butyl Acetate prices. Buoyant freight charges and extreme shortage of shipping containers further sent ripples to the prices of Butyl Acetate. However, the demand from the downstream industries remained firm throughout the quarter.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, Butyl Acetate supplies were hindered as spot buyers faced volume allocations and extended lead times of upstream Acetic Acid and Butanol which altered the operational rates and affected the overall production of Butyl Acetate. The upward price trend was further supported by robust demand, as the enquiries from paints & coatings and adhesives industries surged to meet the traditional seasonal requirement from the construction and automotive sectors. However, the supplies gradually improved by the quarter ending, consequently taking the FOB Texas prices to USD 1790 per tonne in June, showing an improvement of USD 211 per tonne from the prices seen in March.
Asia Pacific
During Q2 2021, spot buyers in China were reluctant to procure the high-cost Butyl Acetate. The prices of raw materials Acetic Acid and Butanol maintained an uptrend due to reduced operating rates of several plants located in Southeast Asia and China, further supported the price trend of Butyl Acetate. Ex-Works Zhengzhou Butyl Acetate prices settled at USD 2141 per tonne in June, up by the USD 350 per tonne in the April 2021. Offtakes were majorly on spot demandas the enquiries were lesser in South Asian market as the second COVID wave wreaked havoc in several countries.
Europe
Butyl Acetate supplies in the European region were tight-to-balanced during the second quarter as BASF ended its force majeure on one of its facilities along with ease in the availability of the upstream butanol. Some supply hinderance was witnessed due to limited availability of the feedstock Acetic Acid as the key players were more focused on replenishing their inventories. Demand from the downstream sectors surged as offtakes were improved from the automotive sector for paints and coatings applications.
For the Quarter Ending March 2021
North America
Butyl Acetate supplies in the region remained tight, due to the limited availability of upstream products and key feedstock n-butanol, followed by unplanned plant outages as the US Gulf region which faced an unprecedented extreme weather condition in mid-February. As the offtakes of Butyl Acetate surged from the automotive, paints and coatings sector, the demand took an upward push. Several producers reported limited feedstock availability as the key factor restraining the market movement. Translating the raw material price increases, OQ chemicals surged the prices of n-Butyl Acetate by USD 110 USD/MT in February for the March delivery, its 120 KTPA Butyl Acetate site in Texas was shut for nearly two weeks in Feb.
Asia-Pacific (APAC)
The supplies of Butyl Acetate were short in Q1 2021, due to the limited availability of the feedstock n-Butanol, followed by the plant shutdowns amid the Chinese Lunar New Year holidays and decline in overseas supplies. However, the demand remained healthy as buyers sought for restocking activity post holidays and improved consumption from the recovering downstream automotive, and paints & coatings sector. Many Indian suppliers ran out of stock stating that they are ordering the material only on need-to basis as the supply has been constrained due to limited imports. Higher shipping containers moving across Asia have affected the import volumes in addition to increasing their cost.
Europe
Butyl Acetate supplies to the European region remained tight during the first quarter of 2021, as the regional producer BASF declared force majeure at its production facility. The tightness was further instigated by reduced imports from the US. Strong offtakes from the downstream automotive market contributed to strong consumption which surged the demand of Butyl Acetate in the European region.
For the Quarter Ending December 2020
Asia
A combination of factors pushed up the Butyl Acetate pricing curve during the second half of Q4 2020. The Asian Butyl Acetate (butac) markets witnessed extended delays in the import supply during the quarter with producers complaining about low inventory levels amidst bolstered market sentiments. Players reported shortage of the feedstock n-butanol, triggering an undue rise in the domestic offers. Supply constraints impacted the overall market sentiments while several butac plants were running below their full capacities. Malaysia’s PETRONAS Chemicals was heard operating its 50,000 tpy in Kerteh, Trengganu at nearly 90% of its installed capacity. Butyl Acetate CFR southeast Asia prices were averaged around USD 1110 per tonne in October, showing a rise of about USD 25 per tonne on month-on-month basis.
North America
Butyl Acetate demand in the America’s remained well-supported throughout Q4 2020 with the outlook turning favorable towards the end of the quarter due to pent-up demand from the downstream architectural coatings and packaging inks sector. Strong gains in feedstock Acetic Acid and n-butanol (NBA) values were transferred to end-customers, thereby fueling market discussions throughout the quarter. Regional traders ended up reporting restocking activity for the early-2021 with rising optimism post the roll-out of coronavirus vaccines. Demand continued to rise as the consumer spending over the do-it-yourself (DIY) paint and coatings sector remained strong. Imported volumes remained affected due to prolonged port congestion, causing delayed delivery times in the US ports.
Europe
Butyl Acetate supply across the Europe remained tight throughout the fourth quarter after the major producer BASF declared force majeure at one of its upstream n-Butanol (NBA) facilities due to unspecified technical problems at its production unit in Ludwigshafen, Germany. Strong pull from the downstream markets and tight production levels spurred the regional offers during Q4, which are anticipated to extend further gains even in the upcoming quarter. Demand outlook seemed buoyant for a larger part of Q4 as offtakes improved in tandem with raised sentiments across the automotive sector compared to the levels observed in Q2 and Q3. Price of Butac was assessed around USD 1400-1600 per tonne in the northwest Europe, showing a marked uptrend compared to levels seen in Q3.
