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.
For the Quarter Ending December 2023
North America
The North American Butyl Acetate market witnessed a stable trend in Q4 2023. The market was moderately supplied with steady demand from downstream industries, primarily the construction sector. However, the market was impacted by elevated interest rates, which caused reduced demand in the construction industry.
Additionally, heavy destocking activity among sellers due to high inventories led to lower prices. The shutdown of any plant was not reported in Q4 2023. The USA, which has the highest changes in prices, exhibited a bullish trend primarily influenced by increasing demand from the international market and higher production due to high natural gas prices.
However, the market was dampened by a notable surplus of inventories, which led to lower prices. The quarter ending price of Butyl Acetate DEL Chicago in the USA was USD 2226/MT. Overall, the North American Butyl Acetate market witnessed a stable trend, with demand from the construction sector remaining firm but the market impacted by high inventories and elevated interest rates.
APAC
The APAC region witnessed stability in the pricing of Butyl Acetate in the current quarter of 2023 (Q4) with some fluctuations in Japan. The market situation remained stable with moderate supply and heavy destocking activities leading to lower prices. High levels of inventories in the market resulted in lower prices, while demand from the international market remained low. However, demand from downstream industries like construction was firm. The shutdown of any plant was not reported during this period. Japan witnessed a bullish market situation with constant supply from the international market, leading to a 2% rise in prices. However, rising production costs on the back of increasing natural gas prices impacted the market. The pricing trends in Japan displayed a seasonality pattern with a 6% rise in prices from the previous quarter and a 1% price increase in the second half of the quarter compared to the first half. The current quarter-ending price of Butyl Acetate CFR Osaka in Japan was USD 1156/MT. Overall, the APAC region witnessed a stable market situation with lower prices due to high inventories and lower international demand, while Japan faced some fluctuations due to rising production costs despite constant international supply.
Europe
The current quarter of 2023 saw several factors affecting the Butyl Acetate market in Europe. Firstly, heavy destocking activities in the market led to a decrease in prices. Secondly, the supply was moderate with plants operating at lower rates due to weak downstream demand. Thirdly, rising coal gas prices led to higher LNG costs, increasing production costs. In Belgium, the prices of Butyl Acetate were stated at USD 1536/MT FOB Antwerp as of the end of the current quarter. Belgium witnessed a percentage change of 18% in prices from the previous quarter, with a 12% increase in prices in the second half of the quarter compared to the first half. The primary reason for this was the shutdown of the BASF Butyl Acrylate plant in Antwerp, leading to supply shortages and higher prices. Furthermore, demand from the international market was expected to decrease, leading to lower overseas inquiries and prices. In addition, high levels of inventories in the market were likely to lead to lower prices. Despite Euro depreciation by 1.08% against USD, import prices were expected to remain lower. Overall, the Butyl Acetate market in Europe witnessed stable trends with the anticipation of declining prices in the future.
For the Quarter Ending September 2023
North America
Throughout Q3, the Butyl Acetate market in America exhibited bearish trends, largely influenced by the continuous fallout in the feedstock Acetic Acid market. Builders in the US are strategically adapting to the prevailing economic landscape by reducing the sizes of both single- and multifamily housing units, aiming to enhance affordability. This adaptation responds directly to the surge in mortgage rates, reaching a 20-year high, as highlighted by an executive at Huntsman. The escalation in mortgage rates is intricately linked to the upward trajectory of the benchmark interest rate set by the Federal Reserve. There is a potential for an additional quarter-point increase in the interest rate from the current range of 5.25-5.50%, aligning with the Federal Reserve's efforts to curb inflation to its targeted 2%. In August, the multifamily housing segment experienced a substantial drop of 26.3% from July, while the single-family segment also decreased by 4.3% compared to July. Moreover, the relatively high interest rate, standing at 5.5%, has significantly dampened demand from consumers in downstream industries. These elevated rates emerge as a critical factor in rendering housing less affordable for an expanding segment of the US consumer base.
Asia Pacific
In the third quarter, the Butyl acetate market in China experienced a noteworthy increase in prices, primarily influenced by the escalating costs of its feedstock, Acetic Acid. This surge has been further compounded by persistently low inventory levels in the market. Additionally, there has been a steady demand from the downstream construction industry. However, the Chinese economy, still grappling with the repercussions of a real estate crisis post the COVID-19 pandemic, has left numerous small businesses and workers with substantial outstanding payments. Consequently, new construction projects have become scarce. Furthermore, the significant rise in Coal prices in the Chinese market has led to heightened production costs, while demand from the downstream construction sector has remained subdued. Examining the supply side, production facilities have consistently operated, efficiently meeting the robust demand from downstream industries throughout Q3. However, the performance from a PMI perspective has been variable during Q3, with values falling below 50 in July, indicating contraction in manufacturing activity, and rising above 50 in August and September, indicating expansion in manufacturing activity.
Europe
The Butyl acetate market in Germany has recently faced a downturn characterized by bearish trends throughout the third quarter. These unfavourable developments result from a combination of factors. Firstly, the absence of adequate cost support from the primary feedstock, acetic acid, has disrupted the stability and cost-effectiveness of production. Additionally, there has been a decline in demand from the downstream construction industry, which can be attributed to persistently high interest rates since July, currently standing at 4.5%. These elevated interest rates have discouraged investment in new construction projects, leading to reduced demand for construction-related chemicals such as Butyl Acetate. Furthermore, the rising construction costs have contributed to the reluctance of potential investors to initiate new construction endeavours. The surplus in inventory has resulted in sufficient levels to meet the demand from downstream industries, further suppressing the growth of the Butyl Acetate market in Germany in Q3. However, there is an anticipation of a reversal in prices, driven by increasing import prices from the Chinese market and elevated prices of Feedstock Acetic Acid.
For the Quarter Ending June 2023
North America
Contrary to the global trend in the butyl Acetate market, the prices have shown a bullish trend in the US market as of Q2 2023. This was due to an increase in demand from the downstream construction industry as US new home sales have jumped 12.2% to a 763000-unit pace as of May. Furthermore, Celanese completed the construction of a new 1.3 MTPA ( million tonnes per annum) feedstock acetic acid plant in Clear Lake, Texas, in the month of May, which is expected to further boost the availability of upstream feedstock Acetic Acid in the coming quarters. Additionally, due to increased economic uncertainty in the US market and stabilizing interest led to positive market sentiments and increase in the downstream demand from the paints & coating industry. Furthermore, there has been a continuous decrement in the inflation rate from 4.9 in April, then 4.1 in May, and finally 3 in the month of June. Thus, as of ending of Q2 in June, the price of Butyl acetate in the US market was stated at USD 2206/MT FOB Texas.
Asia pacific
The prices of Butyl Acetate in the second Q2 declined significantly due to several plants In Northeast China having commenced operation in April, which led to an overflow of inventories in the market amid weak down. Furthermore, a significant decline in feedstock Acetic Acid prices in China in the first half of Q2, and then in the second half, there was a slow recovery in the Acetic Acid prices, which led to an overall decrement in the prices of Butyl Acetate. In Addition, there was stable but weak demand from the downstream paint and construction industry. Additionally, demand from the international market has declined, especially from the Europe market, amid a weak global economic outlook. Additionally, coal prices have decrement, which led to input production costs. Moreover, the seller was offering discounts to increase market transactions and create positive market sentiments. Thus, as of ending of Q2 June, the prices of Butyl Acetate in the Chinese market were stated at USD 928/MT FOB Qingdao.
Europe
The prices of Butyl Acetate in the European market have declined. This was due to the continued high inflation rate and rising interest rate to curb the inflation, which led to overall negative market sentiments in Q2. Moreover, freight charges declined in April, leading to a further decline in import prices. Furthermore, there was a decline in the prices of upstream feedstock acetic acid, which led to a decline in Butyl Acetate prices. In Addition, as of Q2, there was a stable and free flow of Cheap imports from the Asian market, which led to adequate inventories level in the market to meet downstream demand. According to LANXESS, demand from the downstream construction industry has declined throughout q2, which created an overall pessimistic market view. In Addition, there was a decline in Natural Gas prices throughout Q2 which led to a decline in the overall production cost. Thus, as of June 2023, Butyl Acetate prices were stated at USD 1556 per MT FD-Hamburg.
For the Quarter Ending March 2023
North America
In the first half of Q1 2023, Butyl Acetate prices increased owing to firm feedstock Acetic acid and Butanol prices, while procurement also rose consistently from downstream industries. However, Butyl Acetate prices showed a bearish trend in March 2023, and consequently, prices decreased in the second half of Q1 2023. As per the market participants, Butyl Acetate demand has been stable, and there were limited instances of new orders inquired by the end-users, which resulted in bearish pricing sentiment in the domestic market. The sluggishness in the market can also be observed in the below-par performance of the manufacturing industry in the US market. Thus, as of March 2023, Butyl Acetate prices were assessed at USD 1996 per MT.
APAC
In the first half of Q1 2023, Butyl Acetate prices improved as the cost of production increased owing to firm prices of feedstock Butanol, while the procurements increased from downstream paints & coatings industry along with adhesives as the construction industry showed signs of recovery. However, in the H2 of Q1 2023, Butyl Acetate prices showed a bearish trend. As per the market participants, Butyl Acetate demand has been stable in both domestic as well as international market. Furthermore, there were limited instances of new orders inquired by the end-users, which resulted in better pricing sentiment in the domestic market. Meanwhile, Butanol and Acetic acid prices dropped, resulting in sluggish cost pressure. Thus, as of March 2023, Butyl Acetate prices were assessed at USD 1103 per MT.
Europe
In the German market, during the first half of Q1, Butyl Acetate prices went up when the inventory levels dropped, and procurement increased after the New Year holidays. Although the supply chains were stable with consistent Natural gas prices in the market, in the second half of the quarter, the market showed a bearish trend, and prices decreased due to the drop in queries from the downstream market. This was due to ample material availability owing to steady imports and domestic production, despite the expected improvement in Butyl Acetate prices. Feedstock Acetic acid prices also fell sharply, while Butanol prices also showed a declining trend. Thus, as of March 2023, Butyl Acetate prices were assessed at USD 1754 per MT on FD basis.
For the Quarter Ending December 2022
North America
Consumer sentiment has declined in the US market in the last few months, which has been vindicated by the drop in US Manufacturing Purchasing Index (PMI), which dipped below 50 (i.e., 49.7) in November, signifying contraction in manufacturing and industrial activity. The holiday season further contributed to the weak demand dynamics of several commodities, including Butyl Acetate. Furthermore, Acetic acid (Feedstock) remained sluggish throughout the last quarter, which eased cost pressure over Butyl Acetate. Additionally, demand from paints & coatings and other industries has reported a sharp drop owing to off-season dullness while the material availability has been ample, further easing the prices. Hence, as of December 2022, Butyl Acetate prices were assessed at USD 1950 per MT FOB Texas.
Asia Pacific
In the Chinese market, Butyl Acetate prices have rebounded marginally towards the end of the last quarter of 2022 despite weak demand dynamics. The operating rates of several capacities, including those in Shandong, have been reported at 55-60% hence availing ample material in the market. Domestic players have reported stable level of inventory levels in the market. However, constrained logistics and more than expected drop in the past weeks has contributed towards the bullish turn in the Butyl Acetate prices in the latter stages of the quarter. Thus, as of December 2022, Butyl Acetate prices were assessed at USD 1060 per MT on a FOB basis. Meanwhile, throughout the fourth quarter, Butyl acetate prices dropped continually from October till Mid-December owing to weak demand dynamics amid soft sentiment caused by the sluggish performance of the construction industry and covid lockdowns.
Europe
In Europe, Butyl Acetate prices dropped continuously throughout the last quarter owing to weak demand dynamics, which resulted in sluggish offtakes from downstream industries, including the construction industry, due to off-season dullness. Though, Butyl Acetate prices increased marginally as the prices trend witnessed some light in the Asia Pacific, which also prompted market participants in Germany to improve their margins in the later stages of Q4. Thus, as of December 2022, Butyl Acetate prices were assessed at USD 1780 per MT. Furthermore, IFO has reported that Germany may avert the recession, whose threat loomed large in the previous months.
For the Quarter Ending September 2022
North America
In the North American region, Butyl acetate prices constantly dropped throughout the third quarter owing to weak cost support from the feedstock and sluggish demand from the downstream industries. Meanwhile, supply dynamics remained under pressure as the key exporting port of Houston witnessed port congestion that curtailed the material available in the international market. However, weak demand from the European nations and Asian countries resulted in the limited impact of curtailed supply on the overall prices of Butyl Acetate. Thus, after the conclusion of Q3, Butyl Acetate prices were assessed at USD 2380 per MT on a FOB basis.
Europe
In the European region, Butyl Acetate prices dropped sharply during the third quarter owing to a high inflow of cheap imports from Asian countries, i.e., Malaysia, China, Singapore, and others. Meanwhile, in Europe, domestic production remained under pressure due to the high cost of production as the energy prices drive the operating costs while weak demand ensured limited interest of domestic producers in maintaining operation rates. Furthermore, the supply chain remained under pressure as Europe faced turmoil from port congestions and labor strikes. Thus, after the conclusion of Q3, Butyl Acetate prices were assessed at USD 1991 per MT on an FD basis.
Asia Pacific
Butyl Acetate prices in the Asia Pacific region dropped consistently as the cost pressure remained weak while the demand dynamics from downstream industries deteriorated. China’s battle with Covid continued in Q3 2022 as the market activities remained under constant threat of covid related disruptions. Furthermore, Port activities were also halted due to the rise in covid cases. Meanwhile, Japan and South Korea witnessed supply disruptions as typhoons disrupted trading activities and halted port activities. However, the inventory levels remained stable for the firm owing to weak consumption rates from downstream industries. Thus, Butyl Acetate prices were assessed at USD 1135 per MT CFR Busan.
For the Quarter Ending June 2022
North America
Butyl Acetate prices fluctuated in the North American region during the second quarter of 2022. The prices first inclined till May, then declined in June because of the changing supply and demand dynamics. Flickering energy prices and freight charges supported the situation. The prime factor behind the price surge was inclining upstream cost and strong downstream demand. As the market value of feedstock Acetic Acid inclined in the domestic market, the manufacturing cost escalated, which eventually caused the price of Butyl Acetate to propel upwards. Furthermore, the skyrocketing energy costs and high logistic costs amid Russia-Ukraine war tensions added to its already augmented price value. Moreover, several Acetic Acid producers announced force majeures in the country, which eventually impacted the Butyl Acetate market. In June, as energy costs substantially settled and freight charges reduced, so is the price value of Butyl Acetate. Thus, the evaluated price value of Butyl Acetate was USD 3140/MT FOB Texas in June.
APAC
India and China showcased different market scenarios for Butyl Acetate in the Asia-Pacific region. On the one hand, where prices of Butyl Acetate were continuously declining in China, they fluctuated during the entire quarter in India. In China, the value of Butyl Acetate was slumping due to reduced feedstock Acetic Acid prices, overflowing inventories, and weak demand from downstream industries. Furthermore, the relaxation of congested ports and the ease in freight charges supported the price plunge of Butyl Acetate in China. The assessed price value of Butyl Acetate was USD 1460/MT in June. In comparison, the Butyl Acetate prices declined till May and started increasing in June due to fluctuating dynamics between supply and demand. Conclusively, the evaluated price value of Butyl Acetate was USD 1578/MT Ex-Kandla in June.
Europe
In Europe, the Butyl Acetate market showcased a continuous rise in quarter two of 2022, backed by energy crisis and supply shortages. Due to the feedstock unavailability, the supply of Butyl Acetate became constrained, leading to its price surge. Furthermore, the incremented energy costs and logistic issues amid Russia-Ukraine war tensions contributed readily to the price hike of petrochemicals in the European market. Besides, the demand from the paints and lacquer industries was robust, propelling its prices upward. The prices of Butyl Acetate got assembled at USD 2273/MT in April, which increased to USD 2460/MT in June and showcased a hike of 8.23%.
For the Quarter Ending March 2022
North America
In Q1 2022, the cost of Butyl Acetate slipped because of feeble downstream interest sufficient availability of the product in the domestic market. In the USA, the cost of Butyl Acetate towards the beginning of the quarter was assessed at USD 1388/ton FOB Texas. The declining pattern was observed because frail Acetic acid costs adequate mid stock from the producers. Volatile raw material costs tested the industrial productivity, influencing the butyl acetate derivation market. Significant Ethyl Acetate makers in the USA had expanded Butyl Acetate costs for abroad providers. Exports to Canada and Mexico was reduced in this quarter due to oversupplies in those regions and stable downstream market.
Asia Pacific
In this quarter, the cost of Butyl Acetate in India was hindered by deteriorating demand and feeble market sentiments. The steep cost fall was provoked by a week-on-week plunge in upstream Acetic Acid and Butanol combined with a persistent bearish demand trend. In India, the cost of Butyl Acetate towards the quarter-end was seen to be USD 1347/ton CFR Kandla. Exports from Southeast Asia were likewise reduced with the drooped market environment. In Southeast Asia, spot cargoes at the fundamental ports were muted as the market had adequate stock and deterred demand influencing the trading market. Major downstream paint ventures stayed feeble with lower industrial volume offtakes and product stockpiling in the local market.
Europe
In Q1 2022, the price of Butyl Acetate in Germany towards the end of the quarter was observed to be USD 2363/ton FOB Bremen. The prices slipped continuously in succeeding months due to weak demand its downstream industries and high inventories. Feedstock Methanol market stayed deterred because of a drop in spot interest from Gasoline blending. Acidic acid remained crumbling because of frail interest from its subsidiary market, including Ethyl Acetate. Local producers had likewise decreased the costs for the local market, and the purchasers had kept a watch out for conditions and are anticipated that the prices should slip further. Inventories among the endeavours began to increase, which squeezed the makers to clear their current inventories.
For the Quarter Ending December 2021
North America
In Q4, the prices of Butyl Acetate in North America surged compared to Q2 and Q3 with increase in demand and insufficient supply. Due to plant interruptions in the US Gulf, limited availability of feedstock acetic acid and butanol reduced operating rates and total output of Butyl Acetate. The broader supply chain was also hampered by transportation issues. Throughout the quarter, demand for paints, lacquers, and coatings remained strong, keeping prices on the rise. Butyl acetate is priced at USD 2255 per MT FOB Texas for December and the prices observed to be hovering around $2185/ton-$2320/ton. Freight issue, domestic production problem due to increase in demand from downstream enterprises and tight acetic acid market were the major factor that drive up the Butyl acetate market in US.
Asia Pacific
In Q4, the prices of butyl Acetate remained on the upper end with subsequently decreasing demand with the succeeding months of Q4. In, India, the price of Butyl acetate were $2099/ton Ex-Kandla. The price rose in October with surge in feedstock prices and tightened supply of Butyl Acetate in the domestic market due to scheduled maintenance of various plants have put forth price pressure on the domestic and international manufacturers. However, due to improvement in the production activities in the region the prices dropped gradually. In China, the prices dropped drastically with the lowest hit of $1650/ton FOB Qingdao on 17th December with declining raw material butanol and acetic acid prices. Manufacturers observed oversupply of n-butanol and traders had enough inventories. Consequently, given the weak consumption trend in China, the average operating rates have also observed a decline. Easing fuel prices have stabilized the production costs for the local producers.
Europe
In Q4, the prices surged in the first half and were maxed out with $3880/ton FOB Bremen as the natural gas prices throughout the European region increase due to high electricity surcharge. The supply throughout the region was interrupted due to logistics issues with shortages of truck drivers and port and warehouse workers which impacted the Butyl Acetate market. However, towards December, the prices started to decline due to Sufficient supply and weak market demand which pushed the price trend downwards. In the last week of December, the prices of Butyl Acetate slipped to $3089/ton FOB Bremen.
For the Quarter Ending September 2021
North America
In Q3 2021, Butyl Acetate market experienced an upward trajectory backed by the tightened supply of feedstock Acetic Acid and n-Butanol during this period. Constant surge in the prices of Butyl Acetate was seen in US owing to the constraint availability and firm demand pattern. Shortage in the supply of feedstock was caused as the industrial infrastructure in the US Gulf Coast remained shut due to the severe climate crisis in the region. The inflation in the pricing trend of Butyl Acetate was further supported by high-end demand from paints and coatings, textile and plastics industries. However, with the resumption of industrial operations after the hurricane effects, an improvement in the supplies is anticipated in the coming months.
Asia Pacific
During Q3 2021, an exponential rise in demand for Butyl Acetate was observed in the Asian Market which aided the soaring prices of feedstock Acetic Acid amidst low production rates. In China, due to the shut down of the Ningbo-Zhoushan port for around 12-14 days in August following the zero-tolerance corona virus policy, caused the supply chain disruption that consequently influenced the prices of Butyl Acetate in the region. In addition, scarcity of feedstock Acetic Acid due to the plant outages also contributed to hike the prices of Butyl Acetate. In India, majority of the Butyl Acetate was imported from China hence, congestion on several ports of China along with soaring freight charges fueled the prices of Butyl Acetate in the Indian market. Ex Kandla Butyl Acetate prices were assessed at USD 2178.12/MT in September.
Europe
In Europe, an exponential rise in the prices of Butyl Acetate was witnessed in the third quarter. Moreover, lower imports from US because of Ida hurricane led to the tight supply of upstream n-Butanol and Acetic acid which consequently fumed Butyl Acetate prices. Buoyant freight charges and extreme shortage of shipping containers further sent ripples to the prices of Butyl Acetate. However, the demand from the downstream industries remained firm throughout the quarter.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, Butyl Acetate supplies were hindered as spot buyers faced volume allocations and extended lead times of upstream Acetic Acid and Butanol which altered the operational rates and affected the overall production of Butyl Acetate. The upward price trend was further supported by robust demand, as the enquiries from paints & coatings and adhesives industries surged to meet the traditional seasonal requirement from the construction and automotive sectors. However, the supplies gradually improved by the quarter ending, consequently taking the FOB Texas prices to USD 1790 per tonne in June, showing an improvement of USD 211 per tonne from the prices seen in March.
Asia Pacific
During Q2 2021, spot buyers in China were reluctant to procure the high-cost Butyl Acetate. The prices of raw materials Acetic Acid and Butanol maintained an uptrend due to reduced operating rates of several plants located in Southeast Asia and China, further supported the price trend of Butyl Acetate. Ex-Works Zhengzhou Butyl Acetate prices settled at USD 2141 per tonne in June, up by the USD 350 per tonne in the April 2021. Offtakes were majorly on spot demandas the enquiries were lesser in South Asian market as the second COVID wave wreaked havoc in several countries.
Europe
Butyl Acetate supplies in the European region were tight-to-balanced during the second quarter as BASF ended its force majeure on one of its facilities along with ease in the availability of the upstream butanol. Some supply hinderance was witnessed due to limited availability of the feedstock Acetic Acid as the key players were more focused on replenishing their inventories. Demand from the downstream sectors surged as offtakes were improved from the automotive sector for paints and coatings applications.
For the Quarter Ending March 2021
North America
Butyl Acetate supplies in the region remained tight, due to the limited availability of upstream products and key feedstock n-butanol, followed by unplanned plant outages as the US Gulf region which faced an unprecedented extreme weather condition in mid-February. As the offtakes of Butyl Acetate surged from the automotive, paints and coatings sector, the demand took an upward push. Several producers reported limited feedstock availability as the key factor restraining the market movement. Translating the raw material price increases, OQ chemicals surged the prices of n-Butyl Acetate by USD 110 USD/MT in February for the March delivery, its 120 KTPA Butyl Acetate site in Texas was shut for nearly two weeks in Feb.
Asia-Pacific
The supplies of Butyl Acetate were short in Q1 2021, due to the limited availability of the feedstock n-Butanol, followed by the plant shutdowns amid the Chinese Lunar New Year holidays and decline in overseas supplies. However, the demand remained healthy as buyers sought for restocking activity post holidays and improved consumption from the recovering downstream automotive, and paints & coatings sector. Many Indian suppliers ran out of stock stating that they are ordering the material only on need-to basis as the supply has been constrained due to limited imports. Higher shipping containers moving across Asia have affected the import volumes in addition to increasing their cost.
Europe
Butyl Acetate supplies to the European region remained tight during the first quarter of 2021, as the regional producer BASF declared force majeure at its production facility. The tightness was further instigated by reduced imports from the US. Strong offtakes from the downstream automotive market contributed to strong consumption which surged the demand of Butyl Acetate in the European region.
For the Quarter Ending December 2020
Asia
A combination of factors pushed up the Butyl Acetate pricing curve during the second half of Q4 2020. The Asian Butyl Acetate (butac) markets witnessed extended delays in the import supply during the quarter with producers complaining about low inventory levels amidst bolstered market sentiments. Players reported shortage of the feedstock n-butanol, triggering an undue rise in the domestic offers. Supply constraints impacted the overall market sentiments while several butac plants were running below their full capacities. Malaysia’s PETRONAS Chemicals was heard operating its 50,000 tpy in Kerteh, Trengganu at nearly 90% of its installed capacity. Butyl Acetate CFR southeast Asia prices were averaged around USD 1110 per tonne in October, showing a rise of about USD 25 per tonne on month-on-month basis.
North America
Butyl Acetate demand in the America’s remained well-supported throughout Q4 2020 with the outlook turning favorable towards the end of the quarter due to pent-up demand from the downstream architectural coatings and packaging inks sector. Strong gains in feedstock Acetic Acid and n-butanol (NBA) values were transferred to end-customers, thereby fueling market discussions throughout the quarter. Regional traders ended up reporting restocking activity for the early-2021 with rising optimism post the roll-out of coronavirus vaccines. Demand continued to rise as the consumer spending over the do-it-yourself (DIY) paint and coatings sector remained strong. Imported volumes remained affected due to prolonged port congestion, causing delayed delivery times in the US ports.
Europe
Butyl Acetate supply across the Europe remained tight throughout the fourth quarter after the major producer BASF declared force majeure at one of its upstream n-Butanol (NBA) facilities due to unspecified technical problems at its production unit in Ludwigshafen, Germany. Strong pull from the downstream markets and tight production levels spurred the regional offers during Q4, which are anticipated to extend further gains even in the upcoming quarter. Demand outlook seemed buoyant for a larger part of Q4 as offtakes improved in tandem with raised sentiments across the automotive sector compared to the levels observed in Q2 and Q3. Price of Butac was assessed around USD 1400-1600 per tonne in the northwest Europe, showing a marked uptrend compared to levels seen in Q3.
