For the Quarter Ending December 2024
North America
In Q4 2024, Butyl Acetate prices in the USA remained range bound, holding around USD 1740-1770 per metric ton FOB Texas, despite sluggish downstream demand from the paints, coatings, and personal care sectors.
Ample supply levels balanced the market, even as end-user purchasing power remained constrained. While attempts to reduce prices had minimal impact, upstream methanol prices showed upward momentum due to anticipated increases in Methanex's monthly contract pricing. However, weak methanol demand and elevated shipping costs limited significant price hikes for the feedstock. Manufacturing activity faced pressure as key downstream industries, including construction and automotive, exhibited subdued performance. Chemical producers, such as Celanese, implemented cost-cutting measures and temporary shutdowns to align with reduced demand.
Despite stable supply conditions, the U.S. construction sector, a major consumer of Butyl Acetate in coatings, remained slow, with residential activity facing ongoing challenges from high interest rates and affordability issues. While builder optimism improved slightly, reflecting regulatory relief expectations post-election, overall construction activity stayed below prior-year levels. Looking ahead, market participants express cautious optimism for a potential recovery in 2025, driven by regulatory shifts and improved sentiment in downstream industries. However, persistent supply-demand imbalances and subdued global economic conditions are likely to keep price growth moderate in the near term.
APAC
In Q4 2024, the Butyl Acetate market in China experienced mixed price trends, with overall declines driven by weak downstream demand, high inventory levels, and reduced production capacity due to shutdowns and lower utilization rates. Prices briefly rebounded in late November, supported by production halts in Shandong and modest improvements in demand, before stabilizing in December at around USD 990-1080 per MT FOB Qingdao. Manufacturing activity remained steady, with stable plant operations and government stimulus measures supporting output, although oversupply and subdued foreign sales limited market recovery. Downstream demand from the paints, coatings, and construction sectors stayed weak, reflecting cautious purchasing behaviour and sluggish real estate activity despite ongoing stimulus measures. While higher upstream acetic acid costs could create some upward price pressure, weak trading activity and a cautious market sentiment are expected to keep the Butyl Acetate market in a state of consolidation, with supply-demand imbalances persisting into 2025. Looking ahead, the market faces potential upward price pressure from higher upstream acetic acid costs, but weak downstream demand and cautious trading sentiment will likely limit significant price growth.
Europe
In Q4 2024, Butyl Acetate prices in Germany showed a consistent declining trend, primarily driven by lower feedstock acetic acid prices, oversupply, and weak demand from the construction sector. Prices were further pressured by subdued downstream activity in applications like paints and coatings, exacerbated by a significant contraction in the construction industry. Residential construction saw persistent weakness, while commercial activity faced its sharpest decline in months, and civil engineering posted moderate reductions. Rising costs, logistical challenges, and high interest rates continued to weigh heavily on market sentiment. Manufacturing activity in Germany and the broader Eurozone remained under pressure, with the economic indexes indicating ongoing contraction. Stable plant operations and steady import flows ensured sufficient supply, but oversupply and weak new orders reflected the broader economic slowdown. Business confidence showed some improvement late in the quarter, though supply-side constraints and reduced purchasing activity limited recovery. Looking ahead, the construction sector's challenges, including high material costs and geopolitical uncertainties, are expected to persist, delaying significant recovery until 2025. Although higher upstream methanol prices may create upward pressure on production costs, weak downstream demand and cautious market activity are likely to keep Butyl Acetate prices subdued in the short term.
For the Quarter Ending September 2024
North America
In Q3 2024, Butyl Acetate pricing in North America witnessed a mixed trends with declining prices in the first month of Q3 2024, the prices of Butyl Acetate decline amid weak prices of Feedstock Acetic Acid, and in the second month, prices of Butyl Acetate has increased amid inadequate supply to meet downstream demand, while in the last month of Q3 2024 the prices of Butyl Acetate declined again amid lower demand from the international market and return of adequate supply.
Factors contributing to this fluctuating trend were increased demand from the construction sector, firm prices of feedstock acetic acid, and a rebound in construction employment, particularly in the paints and coatings industry. Despite a bearish outlook due to weak performance in the construction industry, there were positive shifts expected with rising methanol prices.
The quarter recorded a 17% decrease in the same period last year and a slight dip from the previous quarter, with a 6% decrease. Notably, there was a 1% price increase between the first and second half of the quarter. The quarter ended with a price of USD 1845/MT of Butyl Acetate DEL Chicago in the USA, reflecting an overall positive pricing environment amidst the changing market dynamics.
APAC
In the third quarter of 2024, the Butyl Acetate market in the APAC region experienced a period of declining prices, influenced by several key factors. Weak demand from downstream industries, particularly the construction sector, played a significant role in driving Butyl Acetate prices lower. Additionally, stable feedstock costs and subdued market activity contributed to the bearish sentiment. These factors combined to create a challenging pricing environment for Butyl Acetate in the region. In Japan, the market saw the most significant price changes during this quarter. Overall trends indicated a 9.4% increase from the same quarter last year, with a 1.7% decrease from the previous quarter in 2024. Notably, there was a -1% price change between the first and second half of the quarter. This downward trend culminated in the latest quarter-ending price of USD 1150/MT of Butyl Acetate CFR Osaka basis. The consistent decrease in pricing throughout the quarter underscored the negative sentiment prevalent in the Japanese Butyl Acetate market.
Europe
The European Butyl Acetate market in Q3 2024 exhibited mixed trends, with prices declining in the first half but recovered in the second half, though the overall trend remained bearish. This fluctuation was largely driven by lower feedstock acetic acid prices, which reduced production costs. Key factors influencing this trend included lower upstream methanol prices, decreased import costs from China, and weak demand from downstream sectors like plastics and polyester. An oversupply of PTA due to resumed plant operations, coupled with a drop in crude oil prices, further dampened market sentiment. The Eurozone's manufacturing activity remained low, signalling continued contraction in the sector. The Germanys saw notable price changes, with Butyl Acetate prices increasing by 20% compared to the same quarter last year but decreasing by 0.3% from the previous quarter in 2024. Prices between the first and second halves of the quarter dropped by 1%. The quarter-ending price for Butyl Acetate FD Hamburg in the Germany was USD 1,493 per MT, reflecting the overall downward pricing environment in the region.
For the Quarter Ending June 2024
North America
After an initial rise in Butyl Acetate prices at the start of the second quarter of 2024 due to restocking activity, the quarter saw a pronounced decline in pricing across North America due to improved material availability to meet downstream demand. This decline was driven by a combination of ample inventories, tepid downstream demand, and weak market sentiment, all of which exerted downward pressure on prices. Throughout the quarter, the manufacturing and construction sectors, primary consumers of Butyl Acetate, reported average procurement activity, highlighting a lack of buying enthusiasm. Higher inventory levels led producers to reduce quotations to stimulate market engagement, further weakening the price environment.
In the USA, where price changes were most pronounced, the Butyl Acetate market experienced a consistent downward trend. Despite the seasonal peak in freight costs at the start of the shipping season, which heightened production expenses, prices remained low. A notable 20% year-over-year price decline and a 3% decrease from the previous quarter underscored the persistent bearish sentiment. The first half of the quarter saw a sharp 13% price reduction compared to the second half, reflecting heightened supply pressures and stagnant demand.
Overall, the pricing environment for Butyl Acetate in Q2 2024 has been decidedly negative. This downturn culminated in a quarter-ending price of USD 1960/MT DEL Chicago, capturing the overall sentiment of market instability and sustained downward pressure. Continued weak demand, coupled with significant inventory levels, has created a challenging pricing landscape for Butyl Acetate in North America.
APAC
In Q2 2024, the Butyl Acetate market in the APAC region has experienced a notable price increase, driven by multifaceted factors. Amid moderate terminal market consumption and a consistent downstream purchasing enthusiasm, limited enterprise shipments and persistent inventory constraints have propelled prices upwards. The market has been underpinned by the rising costs of key raw materials, such as n-butanol and acetic acid, coupled with fluctuating methanol prices. These cost pressures, alongside heightened restocking activities and strong demand from sectors like construction, have collectively fostered a bullish pricing environment. Japan has witnessed significant movements in Butyl Acetate prices, marking a 24% increase compared to the same quarter last year. This sharp rise can be attributed to a combination of robust industrial activity, particularly in manufacturing and housing construction, and supply chain dynamics. Despite a 1% decrease from the previous quarter in 2024, the overall sentiment remains positive, reflecting resilience in market fundamentals. Seasonal demand variances have also played a role, with the second half of the quarter showing a 5% price uptick compared to the first half, indicating stronger market activity as the quarter progressed. The latest price recorded at the end of Q2 2024 in Japan stands at USD 1170/MT CFR Osaka, underscoring the sustained upward trend. This quarter's pricing environment for Butyl Acetate in Japan reflects a positive trajectory, driven by consistent demand, strategic restocking, and elevated production costs. The interplay of these factors has established a stable yet incrementally increasing price landscape throughout the quarter."
Europe
The prices of Butyl Acetate in the German market showed an increasing trend at the start of the quarter due to lower inventories, leading traders to negotiate higher prices actively. However, in Q2 2024, the Butyl Acetate market in Europe exhibited a consistent downward trajectory, driven by several intersecting factors. Primarily, stable upstream Methanol prices reported by Methanex, and consistent feedstock Acetic Acid prices set the stage for subdued market activity. Adequate supply levels, combined with diminished procurement activities as the quarter concluded, led to a reduction in prices. This trend was exacerbated by lower demand from the construction sector, compounded by labour strikes and economic uncertainties, further dampening the industrial outlook. Import prices from China also played a critical role, exerting downward pressure due to their declining trend, aligning with broader economic and trade dynamics. Germany witnessed the most significant price fluctuations within the European region, with Butyl Acetate prices falling sharply. This decline can be attributed to an ongoing reduction in construction activities, a sector that traditionally bolsters demand for Butyl Acetate. Despite a positive sentiment generated by the European Central Bank’s interest rate cut, the overall market remained bearish. Seasonality also influenced the pricing trend, as the onset of the holiday season typically leads to restocking, yet this year, it failed to halt the downward spiral. Compared to the same quarter last year, Butyl Acetate prices dropped by 7%, reflecting a broader market correction. From the previous quarter in 2024, which saw an earlier surge in prices by 48%, the contrast was stark, underscoring the volatile nature of the market. The first half of the quarter presented a more severe decline, with prices plummeting by 27%, indicating a steep reduction in market confidence and activity. As the quarter concluded, the price of Butyl Acetate in Germany settled at USD 1520/MT FD Hamburg, marking a negative trend within a predominantly bearish pricing environment. This quarter's analysis underscores a market grappling with oversupply, tepid demand, and economic headwinds, painting a persistently negative outlook for Butyl Acetate pricing.
eclined by 5%, reflecting ongoing market challenges, including weak demand fundamentals and elevated storage levels. This consistent sentiment underscores a stable pricing environment, balancing between moderate demand recovery and persistent supply-side pressures.
For the Quarter Ending March 2024
North America
In Q1 2024, Butyl Acetate prices in North America experienced a consistent upward trend, driven by various factors. The market witnessed significant price increases, with a recorded percentage change from the same quarter last year. The key reasons for this surge in prices include strong demand from downstream industries, particularly the construction sector, and increased procurement activities.
Additionally, rising feedstock costs, such as Acetic Acid, played a role in driving up Butyl Acetate prices. Focusing specifically on the USA, the market saw the maximum price changes. The overall trend in the country reflected the increasing sentiment observed in North America. Seasonal factors, such as restocking activities, contributed to the price fluctuations.
The correlation between Butyl Acetate prices and the performance of the construction industry was evident, as demand from this sector remained firm. Comparing the first and second half of the quarter, there was a notable price increase of 5%. This consistent upward movement in prices throughout the quarter further reflects the positive pricing environment. As the quarter came to a close, the latest recorded price for Butyl Acetate in the USA was USD 2360/MT DEL Chicago. This price signifies the culmination of the increasing trend observed during Q1 2024. Overall, the pricing environment for Butyl Acetate in North America, and specifically in the USA, has been positive, with prices steadily increasing throughout the quarter.
APAC
In Q1 2024, the pricing environment for Butyl Acetate in the APAC region has been largely pessimistic, with prices experiencing a consistent decrease. Several factors have influenced market prices, including weak demand from the construction industry, sluggish economic growth, and low inflation rates. These factors have contributed to lower import prices from China, which has impacted market stability. In Japan, the pricing trends for Butyl Acetate have followed the overall negative sentiment in the region. Prices have remained steady, but at a low level, with a decrease of 4% from the previous quarter. The price comparison between the first and second half of the quarter shows a significant decrease of 10%. The latest quarter-ending price for Butyl Acetate in Japan is USD 1110/MT CFR Osaka. Overall, the pricing environment for Butyl Acetate in Japan has been negative, reflecting the downward trend in the APAC region. The market has been influenced by weak demand from the construction industry and sluggish economic growth. The decrease in prices can be attributed to lower import costs from China and ample supplies in the domestic market. However, there have been no significant disruptions in the supply chain, ensuring sufficient inventory to meet downstream needs. Looking ahead, there is anticipation of a potential increase in Butyl Acetate prices driven by expected rises in import prices from the Chinese market. The construction industry is expected to drive increased demand, which could lead to higher prices in the short term. However, the overall outlook remains negative, with the market experiencing a consistent decrease in prices.
Europe
In Q1 2024, the European market for Butyl Acetate experienced a downward trend in pricing, influenced by several significant factors. Primarily, market dynamics were shaped by the supply and demand conditions within the construction industry, a major consumer of Butyl Acetate. Moreover, persistently high interest rates constrained the purchasing power of downstream industries, impacting overall demand. While certain regions witnessed increased demand due to growth in construction activities, overall demand remained uneven, leading to price instability. Additionally, the availability of feedstock, particularly Acetic Acid, played a crucial role, with fluctuations in Acetic Acid prices due to changes in upstream Methanol costs indirectly affecting Butyl Acetate pricing. Market inventories also played a role in pricing trends, with varying levels of stock across different markets resulting in price adjustments based on regional supply constraints. Furthermore, import prices, particularly from major exporters like China, added additional price pressures, as changes in import costs were reflected in domestic pricing strategies. The broader economic environment, characterized by high interest rates set by the European Central Bank, also influenced purchasing power and investment in downstream industries, thereby affecting demand for Butyl Acetate. Additionally, logistical issues such as transportation costs and supply chain disruptions intermittently impacted the market, contributing to regional price variances. However, despite these challenges, the overall prices of Butyl Acetate declined in the European market during this quarter.
