n-Propyl Acetate prices in Germany have declined compared to the previous week, driven by lower n-Propyl Acetate inventory costs from international markets and abundant stock levels impacting trading. The n-Propyl Acetate downstream paints & coating widely used in construction sector remains entrenched in a downturn midway through the third quarter, further weighing on demand. Despite stable upstream methanol prices reported by Methanex, the market continues to face pressure from weak n-Propyl Acetate downstream demand and cheaper imports from China.

The n-Propyl Acetate downstream construction sector's contraction accelerated in August, with overall activity falling at a faster pace than in the previous two months. The decline is primarily due to steep drops in housing and commercial projects, although civil engineering has shown relative stability, partly due to a large rail track overhaul in Germany that will continue until 2030. However, this uptick in civil engineering is not enough to offset the broader downturn. Hopes for a recovery in the housing market, briefly buoyed by the European Central Bank's recent monetary easing, are fading as the housing sector experiences its steepest decline in four months. Commercial real estate is also struggling, with its index hitting a seven-month low, signalling persistent pressure on builders.

Input prices have dropped for the fifth consecutive month, and subcontractor rates have decreased for the first time since March. However, with output shrinking faster than employment, the sector could face a productivity challenge, keeping construction costs elevated despite lower material prices.

Etex, a leading player in the building materials industry, reported a 4.2% revenue decline in the first half of 2024 due to reduced activity in both new construction and renovation projects. This reflects the broader challenges in the construction industry, which continue to impact demand for n-Propyl Acetate. Domestic n-Propyl Acetate production remains stable, with plants operating at full capacity, and Celanese has resumed operations after previously announcing plant closures, ensuring a sufficient supply. However, the market is expected to remain bearish due to weak demand and downward pressure from low import prices.

ChemAnalyst predicts that n-Propyl Acetate prices in the German market are expected to remain bearish due to reduced demand from the downstream construction sector and decreasing n-Propyl Acetate feedstock costs, particularly acetic acid. This drop in prices is anticipated as acetic acid inventories are likely to remain high, with n-Propyl Acetate production plants operating at optimal capacity. Furthermore, the price of Natural Gas is currently at lower end but might increase in future weeks, which may affect n-Propyl Acetate production cost.