Anticipated Decline in Feedstock Acetic Acid Prices Casts Shadow on Ethyl Acetate Market Outlook

USGC (USA): In the United States market, Ethyl Acetate prices have experienced an upward trend this week, primarily propelled by the increase in feedstock Acetic Acid prices. The positive price momentum is further reinforced by robust demand from Ethyl Acetate downstream industries, notably the construction sector. However, there is an anticipation of a potential downturn in prices soon. This expectation is based on reports of declining methanol prices from Methanex in recent months and the anticipated decrease in demand from the construction industry due to high-interest rates. Additionally, consecutive months of Purchasing Managers' Index (PMI) values at 49.80 and 47.80 indicate a contraction in the manufacturing sector. On a positive note, natural gas prices have remained stable this week, contributing to firm production costs. Despite these dynamics, it is noteworthy that no major disruptions have been reported in the supply chain. This reflects the current market conditions and the factors influencing Ethyl Acetate prices in the US market.

The price of Ethyl Acetate has observed an upward trajectory in the German market this week, primarily driven by a significant increase in the prices of its feedstock, Acetic Acid. The positive market sentiment is further supported by a decline in the inflation rate, decreasing from 6.1% in August to 4.5% in September. However, the Ethyl Acetate downstream construction industry faces challenges, marked by a high-interest rate of 4.25%, fostering a negative outlook and a sense of pessimism within the sector. Despite these hurdles, there is an optimistic outlook for an imminent increase in the price of Acetic Acid. This anticipation is fuelled by heightened demand from the downstream construction industry, increased market transactions, and a prevailing sense of economic certainty. Conversely, import prices are expected to decrease soon, reflecting a sharp decline in the Chinese market. The normalization of inventory levels in China contributes to this anticipated decrease. Moreover, as of this week, no significant disruptions were reported in the supply chain.

As per the ChemAnalyst database, it is anticipated that Ethyl Acetate prices in the Western market will witness a decrease. This projection is likely influenced by reduced transaction activity in the market and the declining prices of Ethyl Acetate Feedstock Acetic Acid. Moreover, the recovery of demand from the Ethyl Acetate downstream construction sector is not expected, given the persistent threat posed by high-interest rates to the demand in Ethyl Acetate downstream industries like the construction industry. Additionally, there is an expectation of increased demand from international markets, particularly the Asian market.