In September, Ethyl Acetate prices have narrowed from their previously elevated levels, mainly due to a decrease in feedstock acetic acid prices. The price drop is a result of Celanese’s plants resuming normal operations after overcoming force majeure constraints, leading to a stabilization of previously limited inventories. Celanese reported a 4% increase in volumes compared to the prior quarter, although prices fell by 2%, resulting in a net revenue gain of 2%. The increased production of Ethyl Acetate Feedstock Acetic acid has also supported higher output of Vinyl Acetate Monomer (VAM), with sufficient Ethyl Acetate Feedstock Acetic acid supply balancing the rise in downstream VAM production. With force majeure lifted, Celanese’s operations have returned to normal.

Demand from the Ethyl Acetate downstream paints and coatings industry remains weak, reflecting reduced construction spending. While both private and non-residential construction sectors have softened, public sector activity remains relatively stable. Construction employment saw a rebound in August after declines in June and July, which may drive future demand in paints and coatings. U.S. Ethyl Acetate downstream construction spending, though higher compared to last year, was disrupted by Hurricane Beryl along the Gulf Coast in July. However, high interest rates appear to be a more significant factor affecting the private sector, where non-residential spending decreased by 0.4% for the month and has only grown 4.5% over the past year. Fewer than half of contractors expect their sales to increase in the next six months, according to market sources.

Domestic Ethyl Acetate production continues at optimal capacity, with sufficient supply meeting the subdued Ethyl Acetate downstream demand from the paints and coatings sector. Ethyl Acetate feedstock Acetic acid prices have fallen, as the supply shortage was resolved with Celanese’s plant reopening, leading to increased market inventories. Additionally, the PMI has remained low, reflecting high supply trends and weak downstream demand.

In July 2024, Ethyl Acetate downstream paints & coating major used in construction industry where spending in the U.S. was estimated at a seasonally adjusted annual rate of $2,162.7 billion, down 0.3% from the revised June figure of $2,169.0 billion, but up 6.7% compared to July 2023, as per the data released by US Census Bureau. For the first seven months of 2024, construction spending totalled $1,237.5 billion, an 8.8% increase from the same period in 2023. Private construction spending was down 0.4% in July to a seasonally adjusted annual rate of $1,678.7 billion, with residential construction decreasing by 0.4% to $941.6 billion. Non-residential construction dropped 0.4% to $737.2 billion. Public construction spending rose slightly by 0.1% to a seasonally adjusted rate of $484.0 billion, with declines in educational and highway construction spending compared to June.