Deterred downstream demand revised the prices of Ethyl Acetate in the Chinese market

On top of sufficient supply of the product, the weak upstream Acetic Acid market dropped the prices of Ethyl Acetate in the Asian market. Low exports of Ethyl acetate from China to other Asian countries resulted in this price trend. Domestic demand for Ethyl Acetate in downstream coating and pharmaceutical industries remained feeble. On 20th April, the enterprises of feedstock Ethanol heard to be operated stably, which eventually surged the production rates resulting in stockpiling of inventories. Lianyungang Longhe ethanol plant worked moderately with the Ex-quotation price of USD 1132/ton, with an operating rate of 1000KTPA. In China, the cost of Ethyl Acetate on 15th April slipped to USD 1310/ton FOB Jiangsu with a weekly declination of 3.76%.

However, in India, the price of Ethyl Acetate remained on the upper end due to reviving market sentiments along with bullish feedstock Methanol prices. On 15th April, the cost of Ethyl Acetate surged to USD 1288/ton Ex-Kandla with a weekly inclination of 1.6%. However, the prices are still on the lower end with surging market demand. The increasing market of coating and pharma sectors, which continues to take a back seat in the energy debate of the Indian market, remained the key factor for revision in the market. Surging freight charges and hampered imports from China due to port congestion distorted the supply/demand equilibrium and resulted in a price hike. In terms of inventories, they remain on the higher end with an increase in consumption from the downstream ventures.

According to ChemAnalyst, the prices of Ethyl Acetate will slip in the upcoming week with fluctuations in the Asian market. Port congestions in China will increase the costs of Ethyl Acetate in the Indian market and stockpiling in the Chinese market. Surging covid cases and lockdowns in various parts of China will slow down the demand for Ethyl Acetate among the consumers. On the demand side, vendors and downstream industries will have weak purchases and sluggish operating costs.