For the Quarter Ending March 2025
North America
Methoxy Propyl Acetate (MPA) market activity in North America remained largely stable to weak throughout Q1 2025, reflecting modest end-use demand and balanced supply dynamics. The quarter began with sluggish demand in January due to weather disruptions and a seasonal slowdown in construction-related solvent applications.
February saw a moderate improvement as warmer conditions boosted coatings and ink consumption in commercial refurbishing and packaging sectors. However, this momentum tapered by March, weighed down by high labor costs, elevated interest rates, and weakening non-residential construction activity. Feedstock methanol prices saw minor fluctuations, while propylene oxide costs remained largely unchanged, resulting in marginal variations in MPA production economics.
Operating rates at regional facilities were stable, with sufficient inventory levels maintained to meet contract and spot market needs. Logistics normalized by mid-quarter after earlier rail and trucking delays. While demand from paints, coatings, and adhesives showed intermittent spikes, buyers preferred cautious procurement amid ongoing macroeconomic uncertainty. Overall, the North American MPA market closed Q1 with muted expectations, lacking strong catalysts for a near-term rebound.
APAC
In Q1 2025, Methoxy Propyl Acetate (MPA) prices in China averaged USD 1,210/MT FOB Qingdao, down 2.4% from Q4 2024’s average and 7.6% lower year-on-year compared to Q1 2024’s average. Prices declined from January to March, reflecting subdued cost support and a balanced yet cautious demand environment. Production remained stable through the quarter, with only minor reductions in utilization rates. Feedstock acetic acid and methanol prices fluctuated mildly, offering limited cost push. While exports to Southeast Asia, especially Vietnam, provided modest support, domestic stocking activity slowed ahead of the Lunar New Year. Downstream demand held steady, led by coatings, electronics, and solvent applications. The electronics segment remained a key anchor, while paints and coatings procurement aligned with seasonal expectations. Despite sluggish FMCG-linked activity, transactional volumes remained stable, preventing sharp price volatility. With no major supply disruptions and post-holiday industrial recovery underway, MPA prices are expected to hold firm near-term, contingent on feedstock cost dynamics and export-driven demand traction.
Europe
In Q1 2025, Methoxy Propyl Acetate (MPA) market conditions in Europe were largely bearish, impacted by subdued demand and stable-to-weak upstream dynamics. January and March were marked by slow activity, while February saw a slight uplift, primarily due to improved coatings and industrial solvent demand, especially in Southern Europe. However, recovery was limited as persistent weakness in the construction sector, particularly in Germany, continued to dampen sentiment. The industrial and automotive coatings sectors, key consumers of MPA, showed restrained purchasing amid high input costs and uncertain project timelines. Feedstock methanol and propylene oxide costs remained mostly stable through the quarter, offering limited cost support. Operating rates among producers stayed steady, with no major maintenance turnarounds reported. Logistics were smooth, although port congestion in Northern Europe and regulatory challenges related to chemical classification and labeling compliance added to operational inefficiencies. Overall, despite brief mid-quarter resilience, Q1 ended with MPA market fundamentals leaning weak, as limited downstream offtake and cautious inventory management kept recovery prospects in check.
For the Quarter Ending December 2024
North America
In Q4 2024, Methoxy propyl Acetate prices in the USA remained range bound, 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 Methoxy propyl 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.
Asia
In Q4 2024, the Methoxy propyl Acetate market in Asia experienced mixed price 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. 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 Methoxy propyl 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, Methoxy propyl 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 Methoxy propyl Acetate prices subdued in the short term.
For the Quarter Ending September 2024
North America
In Q3 2024, Methoxy propyl Acetate pricing in North America witnessed a mixed trends with declining prices in the first month of Q3 2024 amid weak prices of Feedstock Acetic Acid.
In second month prices of Methoxy propyl Acetate increased amid inadequate supply to meet downstream demand and in the last month of Q3 2024 the prices of Methoxy propyl Acetate declined amid lower demand from the international market and return of Adequate supply to meet downstream demand.
The market in the USA, experiencing the most significant price changes, saw a surge in prices for Methoxy propyl Acetate. Contributing to this trend were factors such as increased demand from the construction sector, firm prices of feedstock acetic acid, and a rebound in construction employment, particularly in the paints and coatings industry. Despite a bearish outlook due to weak performance in the construction industry, there were positive shifts expected with rising methanol prices. The quarter recorded a decrease in the same period last year and a slight dip from the previous quarter. Notably, there was a price increase between the first and second half of the quarter, reflecting an overall positive pricing environment amidst the changing market dynamics.
APAC
The third Quarter of 2024 has been a declined period for Methoxy Propyl Acetate pricing in the Asia Pacific Region. The market maintained a consistent sentiment due to factors such as stable supply levels, moderate demand from downstream industries, and steady input costs. However, China experienced notable price changes during this quarter. The market in China saw fluctuations influenced by factors like varying demand from the construction sector, seasonal trends, and pricing dynamics in the global market. Despite challenges, the overall price change was recorded at -4% from the previous quarter in 2024. The comparison between the first and second half of the quarter showed no significant price variance, indicating a stable pricing trend. The quarter-ending price for Methoxy Propyl Acetate in China stood at USD 1295/MT FOB Qingdao. Overall, the quarter witnessed a stable pricing environment with minor fluctuations and a focus on maintaining market equilibrium.
Europe
The European Methoxy propyl Acetate market in Q3 2024 exhibited mixed trends, with prices declining in the first half but recovered 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 leading to lower prices of feedstock Acetic acid as major downstream PTA and Upstream Crude market remained bearish. The Eurozone's manufacturing activities remained low, signalling continued contraction in the sector. The Germanys saw notable price changes, with Methoxy propyl Acetate prices increasing compared to the same quarter last year but decreasing from the previous quarter in 2024. Prices between the first and second halves of the quarter dropped, reflecting the overall downward pricing environment in the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Methoxy Propyl Acetate market initially saw a significant price increase due to heightened market activity and limited supply, causing traders to offer stocks at premium rates.
Despite strong manufacturing activity and increased new orders from Europe and Asia, the market later experienced price declines due to ample inventories, weak downstream demand, and rising production costs driven by higher natural gas prices. Economic uncertainties and fluctuating interest rates in the construction sector, a key consumer, also affected prices.
By the latter half of the quarter, Methoxy Propyl Acetate prices continued to decline, particularly in the USA. Although demand from the construction sector remained steady, it was insufficient to offset the supply pressure from excess inventories. Seasonal factors and cautious buyer behaviour further contributed to the price drop. Overall, prices fell compared to both the previous quarter and the same quarter last year, reflecting a continued downward trend throughout Q2.
APAC
In Q2 2024, the Methoxy Propyl Acetate market in the APAC region experienced a pronounced uptrend in prices. The quarter was marked by robust downstream demand and constrained supply, leading to significant price elevations. Several factors influenced this market dynamism: increased consumption at terminal markets, steady downstream purchasing behaviour, and restricted enterprise shipments that resulted in reduced inventory levels. Encouraging downstream engagement through consistent factory price hikes also contributed to higher market prices. Furthermore, fluctuations in raw material costs, notably acetic acid and crude oil, exacerbated production expenses, thereby elevating Methoxy Propyl Acetate prices. Additionally, the approaching holiday season prompted restocking activities, adding to the bullish market sentiment.
Focusing on China, the country witnessed the most substantial price changes within the region. The overall trend in China was characterized by increasing prices due to heightened restocking activities and improved consumer confidence. The seasonal impact further bolstered this uptrend as holiday preparations necessitated greater inventory accumulation.
The consistent increase in prices throughout the quarter indicates a highly positive pricing environment, driven by strong market fundamentals and strategic restocking initiatives. No significant plant shutdowns or disruptions were reported, further stabilizing the supply chain and supporting the observed price increases.
Europe
Throughout Q2 2024, the European Methoxy Propyl 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. Methoxy Propyl 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. Despite the strained supply, the overall sentiment in the pricing environment remained robustly positive, driven by enduring market demand and escalating production costs.
