US Ethyl Acetate Prices stable amidst long supply, weak Feedstock pricing in early May

Texas (USA): Stability in US Ethyl Acetate prices is linked to stability in feedstock Acetic Acid prices, while high inventory levels lead to discounted offers. The Global US Manufacturing PMI dropped in April 2024 from the previous month, falling below market expectations but slightly revised higher from the flash estimate. This indicated the first halt in factory activity this year after three consecutive expansions. Ethyl Acetate manufacturers reduced purchasing activity in response to a decline in new orders, with surveys highlighting greater caution among clients and reluctance to engage in new business. However, a reduction in backlogs of work sustained production, resulting in increased output levels. Demand for capacity remained largely unchanged as staffing levels decreased slightly, while purchasing activity increased. Input costs rose sharply due to higher oil and metals prices.

Demand from the Ethyl Acetate downstream industries, particularly the construction industry, remained strong despite facing challenges like extended lead times and difficulties in obtaining vendor quotations. Some vendors are now charging extra for quotations. Various factors, including government policies and infrastructure investment in Boston, high government spending in Houston due to the election year, and credit market issues, were observed. Concerns about upcoming digital currency and federal spending controls emerged. Infrastructure projects faced unexpected delays in Jacksonville, with vague explanations from the local government. In Long Island, concerns over inflation and government interference surfaced, while Los Angeles noted stabilization after years of cost escalation leading to higher demand for Ethyl Acetate. Morris Plains reported a boom in the US process industry, but Murrieta expressed concerns about depleting public funds. Despite challenges, Philadelphia highlighted a strong US market, with stabilized interest rates and controlled inflation, providing some stability amid volatile conditions.

Looking ahead, factories maintained broad optimism about output levels for the coming year, and demand from the Ethyl Acetate downstream construction industry is strong and expected to remain strong. Currently, domestic Ethyl Acetate plants are running at optimum capacity to meet both domestic and international downstream demand. Additionally, Ethyl Acetate prices have shown a stable trend this month, influenced by stability in upstream methanol contract prices as reported by Methanex, leading to stable production costs. At the outset, the upstream raw material Acetic Acid market encountered a downturn, succeeded by a subsequent upturn. Ethyl Acetate feedstock Acetic Acid downstream olefin factories in mainland USA decreased their procurement volume, contributing to a prevailing cautious sentiment in the market. There was a focus on maintaining necessary procurement amid weak downstream demand and a subdued market, leading to a downturn in the feedstock Acetic Acid market further impacting Ethyl Acetate prices.