Texas (USA): Throughout June 2024, the N-propyl Acetate market has shown range-bound trends due to adequate inventories meeting downstream demand from the end-use industries. Terminal market consumption was average, and downstream purchasing enthusiasm was weak during the month. Enterprise shipments were limited, increasing inventory levels in the domestic market, and factory quotations were continuously lowered to stimulate demand. However, sluggish consumption kept prices weak.

The Global US Manufacturing PMI was revised slightly lower in June 2024, indicating the highest reading in three months and an improvement in the sector. New orders rose for the second consecutive month, boosting production, though at a slower rate. Employment increased the most since September 2022. Input costs for N-propyl Acetate continued to rise sharply, but the rate of inflation eased, and selling prices increased at the slowest pace of the year. Business confidence hit a yearly low, although client demand remained muted. Firms reported improving demand in Europe and growth in orders from Asia, Canada, and Mexico. Despite positive future expectations, some manufacturers plan short-term shutdowns in June. Significant price increases seem unlikely due to low feedstock prices for Acetic Acid and weak demand from N-propyl Acetate downstream industries like construction.

Domestic N-propyl Acetate plants are operating at optimum capacity to meet demand. The upstream methanol market fluctuated but is expected to improve. The domestic methanol market was strong at the beginning of the week, supported by external procurement, though downstream procurement for N-propyl Acetate remained average, weakening market sentiment.

US natural gas futures rose due to forecasts of hotter temperatures and reduced drilling budgets, significantly decreasing the natural gas surplus. The North American Electric Reliability Council's report highlights energy shortage risks if temperatures exceed expectations, thus leading to higher production costs for N-propyl Acetate.

Demand from the N-propyl Acetate downstream construction industry remains stable despite weak overall sector performance. Total N-propyl Acetate downstream construction starts increased in May, with gains in non-residential and non-building starts, though residential starts slightly declined. Year-to-date, total construction starts have shown significant growth. US construction spending fell in May as higher borrowing rates lowered family homebuilding, and market supply remains adequate in the short term, leading to muted recovery in demand from N-propyl Acetate downstream paints and coatings. According to the Census Bureau, spending in the N-propyl Acetate downstream construction sector has marginally fallen. Investors anticipate the Fed may lower interest rates soon due to recent data trends; however, rising freight costs might complicate the Federal Reserve's goal of reducing inflation.