North America
In Q4 2024, the U.S. paints and coatings sector experienced a cautious environment, with varied price trends across key chemical products used in the industry. Acetone and Butyl Acetate prices remained steady, with supply conditions balanced despite sluggish demand. However, the construction sector, a major consumer of these solvents, faced challenges due to high interest rates and affordability issues, dampening overall demand for coatings. Both the Ethyl Acetate and Butyl Acetate markets showed minimal price movement, influenced by weak demand and elevated shipping costs.
On the other hand, the Glycol Ether market experienced a notable upward trend, with prices rising by nearly 30% in response to strong demand from the personal care and paints sectors. This was further supported by rising feedstock costs and increased energy prices, which contributed to the bullish outlook. The o-xylene market also showed moderate demand from the coatings industry, though the broader economic uncertainties, including inflation and geopolitical tensions, led to a cautious sentiment in the sector.
Overall, the paints and coatings sector faced mixed trends in Q4 2024, with some products experiencing stable prices, while others, like Glycol Ether, saw price increases driven by steady demand. Challenges in construction and broader economic pressures impacted demand, keeping the sector's outlook subdued despite occasional price resilience in specific solvents.
APAC
In Q4 2024, the paints and coatings solvent sector across the APAC region faced subdued demand and consistent price pressures due to weak downstream activity, supply chain imbalances, and fluctuating feedstock costs. Toluene and Xylene prices in China and South Korea experienced steady declines as demand from the paints, coatings, and solvents industries remained soft, while high freight costs and cautious market sentiment further pressured prices. Similarly, Butyl Acetate and Ethyl Acetate markets in China saw weak demand from paints and coatings sectors, driven by high inventory levels and sluggish real estate activity. Although there were brief price rebounds due to production halts, oversupply and subdued foreign sales limited any significant recovery. The MEK (Methyl Ethyl Ketone) market showed mixed trends, with prices falling in November due to weak coatings and adhesive demand but rebounding in December as strong export activity tightened local supply. In Japan, the n-Butanol market initially saw price increases due to rising production costs; however, weak demand from paints and coatings, linked to sluggish construction activity, reversed the trend by year-end. Overall, the paints and coatings solvent sector in the APAC region was marked by weak demand, high inventories, and cautious purchasing behavior, restricting price growth despite occasional supply constraints and feedstock fluctuations.
Europe
In Q4 2024, the Paints and Coatings sector in Europe faced ongoing challenges, reflected in the performance of key solvents like Toluene, Xylene, Ethyl Acetate, Butyl Acetate, and Glycol Ether. Demand from the construction sector, a major consumer, remained weak, particularly in residential and commercial construction, which directly impacted the consumption of solvents used in paints and coatings. As the sector faced rising costs, logistical challenges, and subdued downstream activity, prices of solvents like Ethyl Acetate and Butyl Acetate showed a consistent decline. These declines were further exacerbated by oversupply and cautious market sentiment, particularly as high inventories remained unsold. Meanwhile, while stable demand from the cosmetics sector helped to maintain steady consumption of Glycol Ether, other segments, including paints and coatings, showed signs of stagnation. The Eurozone's economic slowdown, combined with geopolitical uncertainties, led to minimal signs of recovery, and supply disruptions in some regions added further pressure. Overall, despite moderate stability in specific sectors, the Paints and Coatings market in Europe entered Q4 with weak demand conditions, limited growth, and a bearish outlook. This trend is expected to continue unless there is a significant recovery in construction activity or a shift in broader economic conditions, pushing the sector into 2025 with continued challenges.
