Methoxy Propyl Acetate Enters August with a Price Hike, Amid Limited Supply and Cautious Trading

In the early August, the Methoxy Propyl Acetate market experienced an upturn, driven by inadequate supply to meet downstream demand. Market sentiment was largely cautious, with limited trading activity. Future expectations suggest a weakly consolidated Methoxy Propyl Acetate market with narrow price fluctuations, closely monitoring downstream restocking Methoxy Propyl Acetate activities.

Chinese manufacturing activities dropped marginally in July 2024 from June. The decrease was driven by a reduction in new orders, due to weaker demand and tighter client budgets. Additionally, buying levels fell, resulting in a renewed depletion of purchase stocks and an increase in finished goods inventories. Employment remained relatively stable, with only a slight decrease. Output growth was the slowest in nine months, impacted by a slowdown in foreign orders. Delivery times extended for the second consecutive month. Selling prices dropped for the first time since May because of heightened competition, while input cost inflation eased to its lowest level in four months. Despite these challenges, business sentiment improved from June's near five-year low, supported by business development efforts and new product launches.

Methoxy Propyl Acetate prices in the Chinese market are expected to rise moderately. Enterprise Methoxy Propyl Acetate inventories have decreased, and supplier updates indicate optimism. Some Methoxy Propyl Acetate manufacturers plan short-term shutdowns. However, significant price increases are unlikely due to low feedstock prices and weak downstream demand, particularly from the construction sector.

As of August, frequent equipment failures at major factories reduced market supply. Manufacturers of Methoxy Propyl Acetate were optimistic, keeping their prices strong. However, Methoxy Propyl Acetate market confidence weakened later with the restoration of supplies, and a cautious approach from downstream buyers led to a weaker trading atmosphere. In the latter half of the month, Methoxy Propyl Acetate manufacturers voluntarily lowered prices, yet the continued low supply pushed prices up.

In the first half of 2024, real estate policies remained loose, shifting to "destocking" after the Politburo meeting in April. The "517 New Policy" introduced measures such as reduced payment ratios and the removal of the lower limit on mortgage interest rates. Additional policies in the second half of the year are expected to reduce inventory and stabilize the market, stimulating a steady recovery in transactions. New home transactions in core cities are anticipated to stabilize, while second-hand home transactions are likely to expand. This stabilization is expected to narrow the decline in nationwide commercial housing sales. However, due to industry downturns, sales and cash flow pressures from sluggish financing, real estate development investment will remain low and at a bottoming stage.