The onset of Q3 has brought about contrasting trends in the n-Propyl Acetate markets of the US and Europe. Specifically, while the European market has witnessed a decline in n-Propyl Acetate prices, the US market has experienced an increase in these prices. In the European market, the decrease in n-Propyl Acetate prices can be attributed to the downward movement of feedstock Acetic Acid prices. Additionally, the subdued demand from downstream industries has contributed to an overall pessimistic outlook in this region. On the other hand, the US market has demonstrated a bullish trend in n-Propyl Acetate prices. This can be attributed to the growing demand from downstream sectors, particularly the fragrance industry. This heightened demand has resulted in lower inventory levels in the n-Propyl Acetate market as suppliers strive to meet the increased requirements from these downstream industries. The varying dynamics within these Western markets are the primary drivers behind the disparate price trends observed.

Since the beginning of Q3, the prices of n-Propyl Acetate have undergone an upward trajectory in the US market. This shift in the market landscape can be largely attributed to robust demand from domestic and international markets. This heightened demand, in turn, has strong requirements from downstream industries. Consequently, considering the constrained supply, inventories of n-Propyl Acetate have been made available at elevated price points. This situation has arisen due to the need to satisfy the substantial demand from downstream sectors.

In the German market, n-Propyl Acetate prices have dropped since the start of Q3 due to diminished downstream demand, lower Acetic Acid costs, and stable Natural gas prices influencing LNG stability, resulting in reduced production expenses in the n-Propyl Acetate market. Furthermore, the interest rate rising to 4.25% from 4.00% has deepened the negative market sentiment.

As per ChemAnalyst Database, ‘in the German market, in upcoming months, the prices are expected to decrease in the short run, but prices are expected to recover in October on the backdrop of improved economic conditions and rising demand from the downstream industry like wood lacquers. Additionally, the prices of Imports of n-Propyl Acetate are expected on the backdrop of festival season, which led to high prices of material in the German market. In the US market, the n-Propyl Acetate prices are expected to decrease in September, and a slow price recovery is expected in October. It is anticipated that the interest rate in the US market is expected to increase further, creating a pessimistic market view.’