The Ethyl Acetate market in Belgium recorded a further decline this week, extending the price trend observed during the last week, largely due to lower import values from Asian markets. However, prices are being pressured by a 7% increase in upstream methanol costs, as reflected in Methanex's contract pricing. Meanwhile, Ethyl Acetate imports from China remained lower, with prices dropping throughout September, driven by the Mid-Autumn Festival and weak demand from the construction sector.

Despite the Ethyl Acetate’s downstream construction sector showed slight improvement, particularly in residential and commercial projects, it remains in decline. Ongoing recessionary pressures, fewer orders, and falling purchase prices continue to weigh heavily on the market. Some relief may come from lower construction costs, which could revive stalled projects, especially if the European Central Bank lowers interest rates.

Domestically, feedstock acetic acid production remains stable, with factories running at high capacity, ensuring sufficient Ethyl Acetate stock levels. However, Ethyl Acetate lower import prices continue to drive market prices downward. Adding to Ethyl Acetate supply chain issues, congestion at European ports, such as Hamburg, alongside ongoing East Coast Ethyl Acetate backlogs from recent strikes, is limiting supply and pushing up rates. Transpacific ocean rates have fallen more than 30% since their July peak, with carriers now suspending surcharges initially set to take effect in mid-October.

Construction companies continue to face decline in orders, lasting over two and a half years. Although the drop isn’t as steep as last year, the industry’s slowdown is expected to persist. Subcontractors are struggling with reduced demand and offering discounts, which has lowered construction costs. This decrease in costs, along with potential interest rate cuts by the European Central Bank, could revive delayed or cancelled projects.

Demand from the downstream construction sector remains subdued, further weighing on the market. The Eurozone manufacturing activities were slightly improved for September 2024, though it still hovers at lower point of the year. The manufacturing sector continues to contract, with production volumes declining sharply in response to weak demand and a steep drop in new orders. Despite this, manufacturers remain cautiously optimistic about the future.

According to the ChemAnalyst database, Ethyl Acetate prices are expected to rise in the coming weeks due to increasing Ethyl Acetate feedstock acetic acid prices. Additionally, import costs from China are likely to increase, leading to higher domestic inventory costs. Furthermore, with rising economic activity, energy prices, particularly natural gas, are expected to follow an upward trend, which will further contribute to higher Ethyl Acetate prices in Belgium in the near future.