Texas (USA): In the US market, Ethyl Acetate prices have stayed low due to substantial shifts in market dynamics, mainly driven by high inventory levels being offered at discounted rates, thereby reducing inventory costs. Furthermore, production costs have stayed low due to the continued affordability of natural gas.

However, future projections indicate a potential rise in Ethyl Acetate prices due to heightened demand from the Ethyl Acetate downstream construction sector. In general, the outlook for Ethyl Acetate in the US market seems positive. Despite a net decline in sales reported by major industrial player Dow, attributed to decreased Performance Material & Coating sales both quarterly and annually, there was a currency-based sales increase further leading to positive sentiments in the Ethyl Acetate market. Furthermore, net sales declined due to lower volumes in Building & Construction, driven by seasonal factors.

Moreover, the anticipated increase in natural gas prices in the US market is expected to raise production costs, consequently resulting in higher prices for Ethyl Acetate in the US market. Despite adverse weather conditions that caused delays in numerous regions, the U.S. Ethyl Acetate downstream construction sector saw a notable increase in employment, adding jobs in January, according to recent analysis of government data released by the Associated General Contractors of America. In January, seasonally adjusted construction employment reached 8,137,000, marking a 0.1 percent rise from December.

Over the past year, the sector has seen a gain of 216,000 jobs, representing a 2.7 percent increase, creating an optimistic market view for Ethyl Acetate. Meanwhile, non-residential construction firms saw an increase of 7,600 positions in January and 155,100 (3.3 percent) since January 2023.

In terms of supply dynamics, Ethyl Acetate plants have maintained a consistent operational rate due to stable demand from downstream industries. The USA Purchasing Managers' Index (PMI) value has surpassed 50, signalling an expansion in the manufacturing sector, indicating a significant enhancement in manufacturing activity. Since December 2023, the PMI value has notably risen, reflecting positive trends in overall manufacturing activity, including Ethyl Acetate. Moreover, import prices from the US market have decreased, suggesting a reduction in import costs. As of this week, there have been no reported interruptions in the supply chain.

As per demand, there hasn't been a notable shift observed in interest from downstream industries like Construction for Ethyl Acetate. Demand has remained strong, resulting in consistent inquiries for Ethyl Acetate downstream. However, the construction sector faces significant challenges, such as labour shortages and subdued demand. These issues are primarily attributed to persistent high-interest rates, which limit the purchasing power of downstream consumers. Despite these obstacles, the construction industry has exhibited signs of growth. Furthermore, there is an expectation that the construction industry will maintain its strength throughout the first quarter of 2024.