In recent weeks, N-Propyl Acetate prices in the German market have declined, primarily due to declining import N-Propyl Acetate costs and weak market opening after holiday season comes to an end. Despite rising natural gas prices increasing N-Propyl Acetate production expenses, the N-Propyl Acetate market supply has been sufficient to meet downstream demand. Trading activity has been somewhat subdued, influenced by the European holiday season and reduced construction activity in Germany. Consequently, the acetate industry has seen decreased N-Propyl Acetate demand, leading to fewer downstream inquiries and exerting downward pressure on prices.

In contrast, Huntsman's latest quarterly report highlights an increase in both quarter-on-quarter sales and year-on-year demand from the N-Propyl Acetate’s downstream construction sector. However, rising shipping container costs from the Asian market have driven up production expenses. Although ocean freight rates from Asia to Northern Europe and the Mediterranean have eased by about 8% from their July peaks, rates to the U.S. East Coast have remained elevated since mid-July.

Reports indicate some pull-forward of transatlantic volumes ahead of a potential strike, though rates on this lane have stayed consistent. Prices to the U.S. West Coast, which had decreased by about 20% from their July peak due to increased carrier capacity and potentially peaking demand, rose by more than 10% last week following mid-month General Rate Increases (GRIs) by some carriers. However, scepticism remains about the sustainability of these increases, as some carriers are offering discounted rates relative to spot levels. A strike in October could drive West Coast rates higher as shippers divert volumes from the East Coast and as capacity is strained by backlogs at East Coast and Gulf ports.

Despite these factors, the recovery in downstream industry demand has been slower than anticipated. Currently, N-Propyl Acetate prices in Belgium are quoted at USD 1,470 per metric ton, Free Delivered (FD) Hamburg.

U.S. Market Sees Upward Trend in N-Propyl Acetate Prices, N-Propyl Acetate prices in the U.S. market have shown an upward trend this week. This increase is driven by stable feedstock methanol prices, as reported in Methanex's monthly update, along with higher demand from the downstream construction industry and increased international inquiries.

According to the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new single-family homes reached a seasonally adjusted annual rate of 739,000 in July 2024. This marks a 10.6% increase from the revised June rate of 668,000 and is 5.6% higher than the July 2023 estimate of 700,000. Consequently, N-Propyl Acetate prices are currently quoted at USD 1,650 per metric ton FOB Louisiana.