For the Quarter Ending March 2024
North America
During the first quarter of 2024, Methoxy propyl Acetate prices experienced a significant downturn in North America. This decline was chiefly influenced by two key factors: a lack of strong cost support stemming from Acetic Acid, its feedstock, and an overabundance of inventory saturating the market.
The absence of cost pressure from Acetic Acid removed a crucial pricing floor for Methoxy propyl Acetate, while the surplus inventory situation hindered market expansion and further drove prices downward. The impact was notably severe in the United States, where prices dropped sharply compared to the previous quarter.
This decline persisted throughout the quarter, indicating a sustained downward trajectory. By the quarter's end, Methoxy propyl Acetate prices in the US market had declined. In summary, the pricing environment for Methoxy propyl Acetate in North America during Q1 2024 was overwhelmingly negative, characterized by weak cost support, excessive inventories, and a continual downward market trend.
APAC
In the first quarter of 2024, Methoxy propyl Acetate prices in the APAC region experienced a notable decline, influenced by various factors. The overall trend was negative, with prices witnessing a significant decrease of -10% compared to the same quarter last year, continuing the downward trajectory from the preceding quarter, which saw a decline of -19%. Moreover, prices dropped by -6% between the first and second half of the quarter. China saw the most significant price shifts, characterized by a consistently negative pricing environment marked by continual declines. This can be attributed to factors like subdued demand from downstream industries such as construction and elevated inventory levels in the market. Additionally, challenges in the Chinese economy, such as a slowdown in the construction sector and ongoing debt crises, further contributed to this decline. The latest quarter-ending price for Methoxy propyl Acetate in China was recorded at USD 1312 per metric ton FOB Qingdao, emphasizing the prevailing downward sentiment in the pricing environment. Overall, the APAC region's Methoxy propyl Acetate market has witnessed declining prices driven by weak demand and high inventory levels.
Europe
In the first quarter of 2024, the European Methoxy propyl Acetate market witnessed a decline influenced by several factors. Key among these was the performance of its primary feedstock, Acetic Acid, which experienced subdued pricing, thus impacting Methoxy propyl Acetate pricing. Moreover, stable import prices from China, a significant exporter to the region, failed to bolster Methoxy propyl Acetate pricing. The European Central Bank's decision to maintain a relatively high interest rate at 4.5% further affected the market by reducing the purchasing power of downstream consumers, thereby dampening demand.
The Purchasing Managers' Index (PMI) signalled a contraction in the manufacturing sector, typically associated with reduced chemical demand, including Methoxy propyl Acetate. On the supply side, no significant disruptions were reported, ensuring ample inventory levels to meet industry demand.
Despite expectations of price stabilization or potential increases due to anticipated rises in raw material costs and energy prices, overall market sentiment remained cautious, influenced by broader economic signals and sector-specific dynamics such as ongoing challenges in the construction industry, a major consumer of Methoxy propyl Acetate. While these products experienced steady demand, it was insufficient to significantly alter Methoxy propyl Acetate prices positively within the quarter
