German butyl acetate market in March remained subdued with prices lowering from February by almost 0.8%. This development was due to adequate stocks in the market amidst lower production costs because of reduced feedstock Acetic acid and energy costs. The demand from the butyl acetate has shown gradual recovery but not strong enough to push prices upwards.

In terms of domestic production, the German butyl acetate plants were at optimum rates to meet the downstream industry's requirements, with the plants operating at 80-90% capacity leading to adequate supply in the market. The primary feedstock of butyl acetate is acetic acid, its prices have fallen from USD 698 to 638 per MT FD Hamburg since February. This indicates an almost 8% decline in the prices from the previous month causing lower production costs of Butyl Acetate. 

The imports from the international market especially from the Chinese market were stable. Moreover, freight rates from North America to Europe continued to decline due to weak post-Lunar New Year demand and improving global supply situations. Shipping rates from Asia to Europe remained unchanged, with the carrier reducing capacity to prevent rate declines.

The demand for the butyl acetate in the German market has shown recovery but the pace of recovery remains slow. Butyl acetate which is heavily used in the paints & coating sector tied to the construction industry. Market observer reported sluggish product inquires with slow project initiations and subpar new residential construction. The rising raw material costs and inflation costs are contributing to cautious consumer behaviour. Similar behaviour is observed in the demand from another important downstream automotive sector which created an overall sluggish demand scenario.

However, the IFO business climate index rose in March from February. The companies were more satisfied with the current market scenario and expected situations to improve. With expectations of recovery lurking in the positive sentiments. In manufacturing, the index rose significantly. With current business situation assessment have improved.

As per the ChemAnalyst Database, the prices of butyl acetate in the German market in the upcoming weeks of April are expected to remain bearish. With the prices of feedstock acetic acid remaining subdued. Furthermore, stocks in the market remaining adequate to meet the downstream demand. Slow recovery in the pace of demand is unlikely cause higher prices of butyl acetate in the upcoming weeks. Thus, the prices of butyl acetate in April are expected to remain subdued. Recovery in the spot prices is expected in June with feedstock prices rising and an expected rise in the seasonal demand which may lead to high butyl acetate inquiries.