For the Quarter Ending December 2024
North America
In Q4 2024, Ethyl Acetate prices in the USA remained range bound, holding around USD 1438-1638 per metric ton DEL Texas, despite sluggish downstream demand from the paints, coatings, and personal care sectors.
Ample supply levels balanced the market, even as end-user purchasing power remained constrained. While attempts to reduce prices had minimal impact, upstream methanol prices showed upward momentum due to anticipated increases in Methanex's monthly contract pricing. However, weak methanol demand and elevated shipping costs limited significant price hikes for the feedstock. Manufacturing activity faced pressure as key downstream industries, including construction and automotive, exhibited subdued performance. Chemical producers, such as Celanese, implemented cost-cutting measures and temporary shutdowns to align with reduced demand.
Despite stable supply conditions, the U.S. construction sector, a major consumer of Ethyl Acetate in coatings, remained slow, with residential activity facing ongoing challenges from high interest rates and affordability issues. While builder optimism improved slightly, reflecting regulatory relief expectations post-election, overall construction activity stayed below prior-year levels. Looking ahead, market participants express cautious optimism for a potential recovery in 2025, driven by regulatory shifts and improved sentiment in downstream industries. However, persistent supply-demand imbalances and subdued global economic conditions are likely to keep price growth moderate in the near term.
APAC
In Q4 2024, the Ethyl Acetate market in China experienced rangebound trends, with overall declines driven by weak downstream demand, high inventory levels, and reduced production capacity due to shutdowns and lower utilization rates. Prices briefly rebounded in late November, supported by production halts in Shandong and modest improvements in demand, before stabilizing in December at around USD 810-920 per MT FOB Jiangsu. Manufacturing activity remained steady, with stable plant operations and government stimulus measures supporting output, although oversupply and subdued foreign sales limited market recovery. Downstream demand from the paints, coatings, and construction sectors stayed weak, reflecting cautious purchasing behaviour and sluggish real estate activity despite ongoing stimulus measures. While higher upstream acetic acid costs could create some upward price pressure, weak trading activity and a cautious market sentiment are expected to keep the Ethyl Acetate market in a state of consolidation, with supply-demand imbalances persisting into 2025. Looking ahead, the market faces potential upward price pressure from higher upstream acetic acid costs, but weak downstream demand and cautious trading sentiment will likely limit significant price growth.
Europe
In Q4 2024, Ethyl Acetate prices in Germany showed a consistent declining trend, primarily driven by lower feedstock acetic acid prices, oversupply, and weak demand from the construction sector. Prices were further pressured by subdued downstream activity in applications like paints and coatings, exacerbated by a significant contraction in the construction industry. Residential construction saw persistent weakness, while commercial activity faced its sharpest decline in months, and civil engineering posted moderate reductions. Rising costs, logistical challenges, and high interest rates continued to weigh heavily on market sentiment. Manufacturing activity in Germany and the broader Eurozone remained under pressure, with the Manufacturing PMI indicating ongoing contraction. Stable plant operations and steady import flows ensured sufficient supply, but oversupply and weak new orders reflected the broader economic slowdown. Business confidence showed some improvement late in the quarter, though supply-side constraints and reduced purchasing activity limited recovery. Looking ahead, the construction sector's challenges, including high material costs and geopolitical uncertainties, are expected to persist, delaying significant recovery until 2025. Although higher upstream methanol prices may create upward pressure on production costs, weak downstream demand and cautious market activity are likely to keep Ethyl Acetate prices subdued in the short term.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American region experienced a significant decline in Ethyl Acetate prices, with the USA showing the most pronounced changes. This downward trend was influenced by weakened demand from downstream industries, especially in the construction sector, along with ample supply in the market.
The interplay between low demand and oversupply resulted in continuous price reductions throughout the quarter. Additionally, feedstock Acetic Acid prices fluctuated due to a major production halt; however, Celanese's resumption of operations led to lower production costs and a decline in Acetic Acid prices. The USA recorded a -4% change from the previous quarter, indicating a sustained negative trajectory, while a -1% price difference was noted between the first and second halves of the quarter, reflecting consistent price deterioration.
By the end of Q3, Ethyl Acetate was priced at USD 1,580/MT DEL Chicago, highlighting the prevailing bearish sentiment in the market. Overall, the pricing environment for Ethyl Acetate in Q3 2024 was distinctly negative, driven by subdued demand, high supply levels, and ongoing market challenges.
APAC
In Q3 2024, the Ethyl Acetate market in the APAC region faced significant challenges, marked by persistent price declines despite slight increases at the beginning of the quarter. Weak demand from downstream industries, particularly in paints and coatings used in the construction sector, along with stable to falling feedstock prices, contributed to a bearish market outlook. Japan experienced the most notable price shifts this quarter, with a -14% change from the same quarter last year and a -7% decline from the previous quarter. Additionally, lower energy prices and reduced activity in the downstream construction industry further exacerbated the declining market trends throughout Q3. Japan's total manufacturing activity also declined, reflecting weaker demand and lower production levels leading to overall pessimistic market view. Price comparisons between the first and second halves of the quarter indicated a -3% decrease, reinforcing the continuous downward trend. By the end of the quarter, Ethyl Acetate prices in Japan were USD 905/MT CFR Osaka, underscoring the prevailing negative pricing environment.
Europe
In Q3 2024, The European Ethyl Acetate market in Q3 2024 exhibited bearish trends, with prices declining in the first half but stabilized in the second half, though the overall trend remained bearish. This fluctuation was largely driven by lower feedstock acetic acid prices, which reduced production costs. Key factors influencing this trend included lower upstream methanol prices, decreased import costs from China, and weak demand from downstream sectors like plastics and polyester. An oversupply of PTA due to resumed plant operations, coupled with a drop in crude oil prices, further dampened market sentiment. The Germanys saw notable price changes, with Ethyl Acetate prices increasing by 18% compared to the same quarter last year but decreasing by 9.8% from the previous quarter in 2024. Prices between the first and second halves of the quarter dropped by 1%. The quarter-ending price for Ethyl Acetate FD Karlsruhe in the Germany was USD 1,155 per MT, reflecting the overall downward pricing environment in the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Ethyl Acetate market saw a notable rise in prices in first month of quarter due to market activity and inadequate supply, leading traders to offer stocks at premium rates.
Despite robust manufacturing activity and growth in new orders from Europe and Asia, the market faced price declines driven by ample inventories, weak downstream demand, and rising production costs from higher natural gas prices. Economic uncertainties and fluctuating interest rates in the construction sector, a major consumer, further impacted prices. While in the second of half of quarter in the prices of Ethyl Acetate has shown declining market trends.
In the USA, the most significant price changes occurred. Steady demand from the construction industry couldn't counteract the declining trend from excess inventories. Seasonal factors and cautious buyer behaviour also contributed to the decrease. Prices dropped compared to the same quarter last year and the previous quarter, with a further decline within Q2. The quarter ended with Ethyl Acetate at USD 1655 per MT DEL Chicago, reflecting the market's struggle to balance inventories with demand and production costs, painting a pessimistic outlook for the region.
APAC
Initially, at the beginning of the quarter, the price of Ethyl Acetate showed increasing market trends due to restocking of inventories in the market. However, Q2 2024 witnessed a downward spiral in Ethyl Acetate pricing across the APAC region, primarily driven by reduced import costs from China, elevated inventory levels, and subdued demand from downstream industries such as construction. This quarter has been characterized by consistent price reductions by traders, who found themselves disadvantaged amid lower inventory turnover and heightened competitive pressures. Furthermore, fluctuating upstream methanol market dynamics and a general sentiment of cautious procurement among buyers have compounded the price decline. The construction sector's tepid recovery, coupled with seasonal factors like intensified rainfall, failed to sufficiently bolster demand, contributing to the persistent downtrend. Focusing on Japan, which experienced the most significant price changes, the Ethyl Acetate market reflected an overall negative pricing environment. Market trends were notably influenced by seasonal fluctuations, labour shortages, and stringent regulatory conditions in the construction industry, leading to a price decrease of 7% compared to the same quarter last year. From the previous quarter in 2024, prices saw a 3% decline, further indicating a sustained bearish trend. The price comparison between the first and second half of the quarter showed a marginal 2% decrease, underscoring the lack of demand impetus throughout the period. Concluding Q2 2024, the price of Ethyl Acetate in Japan settled at USD 970/MT CFR Osaka, reflecting a negative sentiment in the pricing environment driven by ongoing market challenges.
Europe
Throughout Q2 2024, the European Ethyl Acetate market experienced mixed pricing trends due to various economic and supply chain factors. Upward price trends were primarily driven by heightened production costs for feedstock Acetic Acid and sustained high Methanol prices. Geopolitical tensions in the Red Sea extended shipment routes and increased freight costs, while elevated energy prices, especially for Natural Gas, further added to production expenses. Despite these challenges, robust demand from the construction sector, buoyed by increased foreign direct investment and positive economic sentiment, sustained high market activity. Germany saw the most notable price changes. Ethyl Acetate prices in Germany increased compared to the same quarter last year and from the previous quarter in 2024, reflecting broader regional trends. Warmer weather led to consistent construction activity, maintaining strong demand. Prices also increased from the first to the second half of the quarter, underscoring persistent demand and constrained supply dynamics. However, ending Q2 2024, prices began to decline due to destocking market activity somewhat stabilizing supply dynamics. Ethyl Acetate prices in Germany stood at USD 1281 per MT FD Karlsruhe, highlighting a positive pricing environment characterized by sustained demand pressures and ongoing supply chain challenges. Despite the strained supply, the overall sentiment in the pricing environment remained robustly positive, driven by enduring market demand and escalating production costs.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American region experienced an overall decline in Ethyl Acetate prices, influenced by various factors including supply and demand dynamics, feedstock costs, and downstream industry performance. The USA, in particular, witnessed notable price fluctuations.
Throughout the quarter, Ethyl Acetate prices exhibited a slight decline despite robust demand from sectors like construction and increasing feedstock expenses. Although there was a 1% increase in the first half of the quarter compared to the previous one, indicating an initial upward trend, prices eventually trended downwards. Year-on-year comparisons suggest substantial growth in Ethyl Acetate prices, though the specific percentage is unspecified, pointing to significant price escalation over the past year.
The latest quarter-ending price for Ethyl Acetate in the USA was recorded at USD 1722 per metric ton DEL Chicago, underscoring the positive pricing environment in the region. In Q1 2024 portrayed a positive pricing environment for Ethyl Acetate in North America, particularly in the USA, fuelled by factors such as robust demand, escalating feedstock costs, and seasonal patterns, indicating a continued upward trajectory for prices in the region.
APAC
The Q1 2024 has been marked by decreasing prices for Ethyl Acetate in the APAC region. Several factors have influenced the market prices, including weak demand from the construction industry, high inventories, and low import costs from China. These factors have resulted in a bearish market sentiment, with prices declining throughout the quarter. In Japan, the price of Ethyl Acetate has seen significant changes. The overall trend has been negative, with a 12% decrease compared to the same quarter last year. The price decline from the previous quarter in 2024 was recorded at 9%. Within the quarter, there was a further decline of 9% in prices, indicating a consistent downward trend. Seasonality and correlation in price changes have played a role in shaping the market. The first half of the quarter saw higher prices compared to the second half, reflecting weaker demand and increased inventories. The latest quarter-ending price in Japan was recorded at USD 960/MT of Ethyl Acetate CFR Osaka. Overall, the pricing environment for Ethyl Acetate in Japan has been negative, with a consistent decrease in prices throughout the quarter. The market has been influenced by factors such as weak demand, high inventories, and low import costs. These trends are expected to continue in the near term, with further price declines anticipated.
Europe
In the Europe region, the first quarter of 2024 witnessed a notable trend of increasing prices for Ethyl Acetate, driven by several contributing factors. Heightened demand from the construction sector, coupled with dwindling inventories and elevated import prices from China, played significant roles in this upward price movement. Despite facing challenges such as reduced demand and bankruptcies across various sectors, the construction industry in Belgium demonstrated resilience, achieving a growth rate of 1.9% in 2023. However, a decline in manufacturing activity, as indicated by the Euro Area PMI in March, mirrored domestic supply trends for Ethyl Acetate. Looking ahead to 2024, the construction sector may encounter obstacles due to the high prices of energy-intensive building materials. Nevertheless, initiatives aimed at improving home energy efficiency and pent-up demand are expected to drive growth. While LNG prices in Europe increased during the heating season, projections suggest a subsequent decrease. Moreover, bankruptcy rates in the Netherlands are anticipated to rise, particularly within sectors such as hospitality, transport, retail, and construction. As of March 22nd, Ethyl Acetate prices in Belgium were reported at USD 1150 per metric ton FD Antwerp. Overall, the pricing environment for Ethyl Acetate in the Europe region has been favourable, characterized by steadily increasing prices driven by strong demand, limited supply, and rising import costs.
