Texas (USA) – Butyl Acetate prices in the US market remained unchanged throughout December 2024 and early January 2025, a reflection of balanced market dynamics with ample supply meeting muted demand.  Weakness in key Butyl Acetate downstream sectors, particularly paints and coatings used in construction and automotive industries, contributed to the stagnant pricing.

Despite efforts to stimulate sales with price cuts, purchasing activity remained subdued. Abundant Butyl Acetate inventories and lacklustre performance in key consuming sectors prompted producers like Celanese to implement cost-cutting measures, including temporary production shutdowns.

The Butyl Acetate market is facing headwinds from weak demand in key sectors. While there was a slight uptick in acetyl chain volumes, persistently low prices continue to weigh on sales.

Although production adjustments aim to alleviate supply pressures, recovery in the supply-demand balance is expected to be gradual.  This cautious outlook is linked to the performance of the US construction sector, a major consumer of Butyl Acetate.

Butyl Acetate’s downstream construction activity in December 2024 painted a mixed picture. While overall construction spending increased, this was largely driven by residential activity, particularly repair work following hurricanes Helene and Milton. Non-residential construction spending actually contracted, with declines seen in 11 of the 16 subsectors.

This trend creates uncertainty for aggregate Butyl Acetate producers.  Despite optimism from contractors about future sales, concerns linger about the slow pace of federally funded Butyl Acetate downstream sector projects and the potential impact of policy changes under the new Trump administration.

Builder’s sentiment in December 2024 revealed a mixed picture. High home prices, elevated construction costs, and limited buildable lots continued to dampen confidence. However, builders expressed growing optimism about improved sales prospects in 2025, driven by expectations of regulatory relief.

ChemAnalyst projects a potential decline in Butyl Acetate prices in the coming months due to destocking trends and consistently high supply levels.  The construction sector is anticipated to experience cautious growth, supported by optimism surrounding regulatory changes and improved sales forecasts. However, challenges such as high mortgage rates and construction costs are expected to hinder a rapid recovery.

Stabilization in price reductions and sales incentives, coupled with modest improvements in buyer traffic, suggest a gradual recovery for the Butyl Acetate market extending into 2025. The US aggregates industry faces a complex outlook as it enters 2025. Despite massive investments from the Infrastructure Investment and Jobs Act (IIJA), demand for aggregates has been unexpectedly soft.  This leaves the industry grappling with declining production and an uncertain future.