For the Quarter Ending March 2025
North America
The U.S. N-Propyl Acetate market experienced a gradual downtrend throughout Q1 2025, shaped by a persistent imbalance between ample supply and sluggish demand. After a stable close to 2024, prices softened steadily across the first quarter of 2025, largely due to lower feedstock costs and reduced offtake from downstream segments. Feedstock acetic acid prices dropped significantly, providing some production cost relief, but this failed to stimulate market activity. End-user sentiment remained cautious as high interest rates, labor cost inflation, and tariff uncertainties on raw material imports dampened momentum in key applications such as coatings and adhesives.
On the supply side, domestic production levels remained adequate but were strategically trimmed to align with the weak demand outlook. Manufacturers adjusted output and maintained lean inventories to manage margin pressures. Although logistical conditions improved and imports flowed smoothly, oversupply conditions persisted.
Demand from construction-related coatings, printing inks, and packaging remained below expectations due to elevated building material costs and project delays. Despite modest support from the pharmaceutical and industrial sectors, overall procurement remained need based. With muted demand and no major cost-side disruptions, N-Propyl Acetate prices closed Q1 on a bearish note and are expected to remain under pressure moving into Q2 2025.
APAC
The N-Propyl Acetate market in China exhibited a firm-to-stable trend throughout Q1 2025, with prices showing a mild rise in January followed by a gradual softening toward March. This movement reflected the market’s response to reduced operating rates, steady demand from key downstream sectors, and moderate fluctuations in feedstock values.
Production during the quarter remained largely consistent, with minor adjustments across key facilities. Some producers lowered capacity utilization, while others modestly increased output, keeping overall supply balanced. Although feedstock acetic acid and propanol prices remained weak, they offered sufficient cost stability to avoid significant shifts in production economics.
Demand from the coatings, inks, and industrial solvents sectors held steady, supporting regular procurement patterns. The printing and packaging industries maintained their consumption pace, while seasonal demand from paints offered additional support during the early part of the quarter. Despite some caution in market sentiment, stable transaction volumes helped prevent price erosion.
Looking ahead, with downstream consumption likely to remain consistent and no major supply disruptions anticipated, N-Propyl Acetate prices are expected to continue a stable-to-firm trajectory into early Q2 2025.
Europe
The N-Propyl Acetate market in Germany remained under pressure through Q1 2025, with prices largely stable after a marginal recovery in February. Despite a slight upward trend mid-quarter, weak downstream demand and ample supply continued to weigh on the market. Compared to the same period last year, price levels remained significantly lower, reflecting a broader downtrend driven by soft consumption and persistent overcapacity in key application sectors.
Production across domestic plants remained stable, supported by steady feedstock availability and normalized logistics. Declining freight rates from North America improved import competitiveness, though demand-side pull remained insufficient to shift market sentiment. No major supply disruptions were reported, and stock levels stayed balanced.
Demand from end-use sectors such as paints, coatings, and adhesives remained sluggish, particularly due to ongoing weakness in Germany's construction and manufacturing sectors. High borrowing costs, lower project initiations, and inflation dampened procurement activity. With no substantial signs of recovery in industrial consumption, the market is expected to stay soft, with cautious optimism for moderate improvement heading into Q2 2025.
For the Quarter Ending December 2024
North America
In Q4 2024, N-propyl Acetate prices in the USA remained range bound, holding around USD 1545-1645 per metric ton FOB Louisiana, 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 N-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.
APAC
In Q4 2024, the N-propyl Acetate market in China 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 at around USD 1085-1250 per MT FOB Qingdao. 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 N-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, N-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 key indexes 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 N-propyl Acetate prices subdued in the short term.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, n-Propyl Acetate prices in North America witnessed a mixed trends with gradual increase in second half of Quarter, with the USA experiencing the most significant price changes. This quarter has been characterized by a shift towards higher prices, driven by various factors.
Adequate supply and increased demand from downstream industries, particularly construction, played a crucial role in pushing prices upwards. The stable feedstock prices, coupled with rising demand, created a positive pricing environment. The correlation between market trends and seasonality indicated a favorable outlook for n-Propyl Acetate prices. Compared to the same quarter last year, prices saw a notable -33% decrease, reflecting the resilience and recovery of the market.
In contrast, the quarter-on-quarter change in 2024 showed a positive 0.4% increase, highlighting the ongoing upward trajectory. Notably, the price comparison between the first and second half of the quarter revealed a marginal 1% increase, underlining the consistent growth trend. As Q3 2024 drew to a close, the latest price for n-Propyl Acetate in the USA stood at USD 1640/MT FOB Louisiana, signaling a stable and promising market outlook.
APAC
In Q3 2024, the n-Propyl Acetate pricing landscape in the APAC region has been characterized by an overall uptrend, driven by a combination of factors. Increased demand from various industries, particularly in the construction and coatings sectors, has played a significant role in bolstering market prices. Additionally, supply constraints and production facility maintenance have contributed to the tightening of supply, further pushing prices upwards. China, in particular, has experienced the most substantial price changes within the region. The market has witnessed a consistent increase in prices, reflecting a positive trend for n-Propyl Acetate. Seasonal variations and improved economic conditions have also influenced these price hikes. Comparing to the same quarter last year, the current quarter's prices have seen a notable recovery with a 13% increase from the preceding quarter in 2024. The price comparison between the first and second half of the quarter shows a significant 12% increase, indicating a strong upward trajectory in pricing dynamics. As the quarter culminated, the latest price for n-Propyl Acetate stood at USD 1088/MT FOB Qingdao in China, showcasing a steady and robust pricing environment with positive growth prospects.
Europe
In Q3 2024, the n-Propyl Acetate market in Europe witnessed a significant decline in prices, with Germany experiencing the most notable changes. This decline was primarily influenced by factors such as ample stock levels, weak demand from the construction sector, and lower import prices from China. The bearish market sentiment was further exacerbated by stable domestic production, reduced shipping costs from Asia, and lower natural gas prices, which decreased production costs. The overall trend in the European market reflected a consistent decrease in prices, with a correlation between weak demand and excess inventory levels. Compared to the same quarter last year, n-Propyl Acetate prices in Q3 2024 saw a significant decrease of 30%, indicating a challenging pricing environment. The quarter-on-quarter change from the previous quarter in 2024 was recorded at -2%, further highlighting the downward trend. Additionally, there was a noticeable price difference between the first and second half of the quarter, with prices declining by 5%. The quarter-ending price for n-Propyl Acetate in Germany stood at USD 1405/MT FD Hamburg, reflecting the overall negative pricing environment characterized by declining prices.
For the Quarter Ending June 2024
North America
During the second quarter of 2024, the North American market for n-Propyl Acetate experienced a slightly negative pricing environment, influenced by various macroeconomic and industry-specific factors. Although domestic plants operated at optimum capacity to meet both local and international demand, several key elements impacted market prices.
Elevated inventory levels initially led to discounted offers, while fluctuating upstream methanol and acetic acid prices generated cost pressures. Concurrently, the US natural gas market saw price increases, fuelled by heightened electricity demand and reduced drilling activities, consequently raising production expenses for n-Propyl Acetate.
In the USA, the second half of Q2 2024 saw an increase in n-Propyl Acetate prices. This development was driven by rising prices of feedstock acetic acid. Furthermore, demand from the downstream paints and coatings industry showed increasing market trends, leading to heightened product inquiries. Additionally, the demand from the downstream real estate industry showed signs of improvement, leading to higher procurement activities and consistent product inquiries.
APAC
In Q2 2024, the n-Propyl Acetate market in the APAC region exhibited a consistent downward price trend, influenced by a constellation of factors. The quarter was marked by subdued demand from downstream industries, particularly the construction sector, which faced ongoing challenges such as weak consumer confidence and a struggling property market. Additionally, fluctuating methanol prices added to the cost instability, with a notable reduction in production costs due to declining coal prices. This quarter also saw decreased enthusiasm for purchases, leading to elevated inventory levels and necessitating continuous price reductions from manufacturers to stimulate market activity.
Focusing on China, the region with the most pronounced price changes, the market saw significant downward pressure. Seasonality played a crucial role, with a pre-holiday restocking initially boosting prices, followed by a sharp decline post-holiday. The price decline was further exacerbated by weak support from feedstock acetic acid prices and an overall bearish sentiment in the property sector. Compared to the same quarter last year, n-Propyl Acetate prices dropped by 10%, reflecting a substantial annual decline. Moreover, a 10% decrease from the previous quarter in 2024 underscores the ongoing negative pricing environment. A comparison between the first and second half of the quarter revealed a 4% price decline, illustrating the persistent downward pressure throughout Q2.
Concluding the quarter at USD 940/MT FOB Qingdao, the pricing environment for n-Propyl Acetate in China has been distinctly negative, driven by a confluence of weak demand, cost reductions, and market sentiment. This highlights the broader challenges facing the APAC region's n-Propyl Acetate market amid a period of economic uncertainty and fluctuating raw material costs."
Europe
At the start of Q2 2024, n-Propyl Acetate prices exhibited bearish market trends. This development was due to the market continuing in a destocking mode from the previous month as Q1 ended. Additionally, declining energy prices led to lower production costs, resulting in reduced inventory prices as plants offered lower price quotations.
In the second month of Q2 2024, the prices of n-Propyl Acetate across Europe saw a notable increase, driven by several key factors. The primary catalyst was the escalating costs of upstream feedstocks such as acetic acid, coupled with supply chain disruptions stemming from the ongoing Red Sea crisis, which led to shipping delays and increased freight costs. The region's persistent supply chain challenges created bottlenecks, exacerbating price pressures.
In Germany, the n-Propyl Acetate market experienced significant price volatility, influenced by notable trends and seasonal factors. The construction sector's robust demand, driven by foreign direct investment, bolstered market sentiment despite labor shortages and wage strikes affecting the industry. A 2% price increase was observed between the first and second halves of the quarter, reflecting heightened restocking activities and seasonal procurement patterns.
Comparing year-on-year data, prices have decreased by 35% from the same quarter last year, highlighting a substantial market correction. However, the quarter-over-quarter comparison shows a milder decline of 4%, signifying stabilization. At the quarter's close, the price stood at USD 1470/MT FD Hamburg, indicating a generally stable pricing environment amid various market influences. Overall, Germany's n-Propyl Acetate market has managed to maintain equilibrium despite external pressures, reflecting a resilient pricing sentiment in an otherwise challenging economic landscape.
