For the Quarter Ending June 2021
The supplies in the North American region improved compared to the previous quarter as the several major manufacturers in the Gulf coast recovered from the impact of polar winter storm Uri. The restoration of the industrial infrastructure supported the n-Propyl Acetate manufacturers who ramped up production proportionally with better availability of the feedstock n-Propanol and Acetic Acid. Sasol Chemical North America surged the prices of n-Propyl Acetate in May by USD 567 per tonne which were came into effect from 1st June. Demand was consistent from the downstream paint and coating industries as a ripple effect of seasonal hype in offtakes from the building and construction sector. The pricing trend in the North American region was in a gradual uptrend throughout the second quarter.
During the second quarter of 2021, n-Propyl Acetate supplies in the Asia pacific region showed variation in different parts as the second COVID wave subdued the market activities in several economies in India and Southeast Asia. Some Indian buyers were reluctant to procure large volumes amidst the hovering uncertainties in the domestic market. As a repercussion, the prices in May showed some ease, however the trend improved along with the relaxation in the restrictions and Ex-Works Mumbai prices were assessed at USD 1110 per tonne in June. The market supplies were ample as the cargoes to the US and western region dropped amidst the restoration of the industrial activities and higher shipping charges of the Asian cargoes.
The supplies of n-propyl Acetate in the European region improved compared to the previous quarter, as the OXEA chemicals ended its prolonged turnaround in second quarter, along with the improved imported volumes from the USA. Demand surged exceptionally from the downstream paints and coating industries as the region witnessed seasonal enquiries from the construction sector throughout the quarter, although offtakes were consistent from the pharmaceutical and automotive sector. As a ripple effect, the prices remained firm for a larger part of the second quarter.
For the Quarter Ending March 2021
Offers for n-Propyl Acetate in the North American region were significantly raised taking cues from the feedstock n-Propanol which remained significantly tight due to production outages at several producing facilities during the US gulf coast storm. A leading manufacturer remained temporarily shut till mid-March due to low feedstock inventories. The continued increase in raw materials and the follow-up of demand had a positive impact on the market outlook for n-propyl Acetate. Exports to the other regions plunged. OQ chemicals hiked the prices of n-Propyl Acetate by +USD 154/MT for the March deliveries amid the global supply shortage situation.
n-Propyl Acetate supplies in the Asia Pacific region were tight, during Q1 of 2021. Supplies from the USA were hampered as imports were declined in mid-quarter, followed by the several plant turnarounds during the Chinese lunar new year holidays. Further constraints were extended as. However, demand surged amid the shortages in supply and better offtake from the cosmetics sector during the Q1. In India, n-Propyl Acetate prices were settled at USD 1058/MT in March.
The European n-Propyl Acetate market was sluggish as the supplies were tight during the first quarter of 2021, owing to the cold weather conditions in the northwestern region which caused hinderance in transportation of key raw materials which pressured the plants to operate at reduced efficiencies. Further, the situation worsened as imports declined from the USA. Demand surged due to constant consumption from the cosmetics industries and paints and coatings industry.
For the Quarter Ending December 2020
The demand of n-Propyl Acetate surged in the fourth quarter as the rebound of its end-use markets after the pandemic-related restrictions eased considerably. Several Asian manufacturers were heard running their production plants at full capacities. However, insufficient production from the western region put supply-side pressure on the n-Propyl Acetate market fundamentals. Buoyed by strong demand fundamentals, the price of n-Propyl Acetate in the Indian markets remained firm and was averaged around USD 932 per tonne in the fourth quarter.
The supply of n-Propyl Acetate in the European region showed an uptrend moving into the fourth quarter. During the first half of Q4, the European n-Propyl Acetate production facilities were heard operating at improved efficiency, as the domestic market paced up amid the leverage on COVID restrictions. However, imposition of fresh lockdowns in some of the states capped the market movement. The imports were majorly impacted in the region due to shortages of container and high freight rates. The demand remained upbeat throughout the region as the fragrance and flavor industry gained momentum latter in the second half of Q4.
Supplies seemed tighter in Q4. Manufacturing rates of n-Propyl Acetate were high while stable demand persisted keeping the market activity high with upward movement observed in the prices throughout the western hemisphere. The hurricane season in the gulf coast, affected the feedstock availability, which severely impacted the exports to the other regions. CFR prices were increased due to unavailability of the transportation and human resources followed by the congestion at the Panama Canal.