Ethyl Acetate Prices Remain Low in the US Market, Outlook Shows Potential Rise

Texas (USA): In the US market, Ethyl Acetate prices have remained low due to significant shifts in market dynamics, primarily caused by high levels of inventories being offered at discounted rates, resulting in reduced inventory costs. Additionally, production costs have remained minimal due to the consistent affordability of Natural Gas. However, future projections indicate a potential rise in Ethyl Acetate prices due to heightened demand from the construction sector.

Overall, the outlook for Ethyl Acetate in the US market appears optimistic. Despite a net decline in sales reported by major industrial player Dow, attributed to decreased Performance Material & Coating sales both quarterly and annually, there was a currency-based sales increase. Furthermore, net sales declined due to lower volumes in Building & Construction, driven by seasonal factors. However, it is anticipated that demand from Ethyl Acetate’s downstream industry will increase, leading to inventories being offered at higher rates.

Furthermore, the production cost is expected to rise amidst the increasing prices of Natural Gas in the US market. Despite facing significant challenges, the Ethyl Acetate’s US construction industry showed resilience by adding 11,000 jobs in January, despite bouts of exceptionally cold or stormy weather that caused delays in projects across numerous regions. This information comes from an analysis of new government data released recently by the Associated General Contractors of America. Construction employment in January reached 8,137,000, seasonally adjusted, marking an increase of 11,000 jobs or 0.1 percent from the December total.

Over the past 12 months, the sector has added 216,000 jobs, representing a gain of 2.7 percent, as reported in a release. Specifically, residential building and specialty trade contractors added 2,700 employees in January and 60,100 (1.8 percent) over the past 12 months. Employment at non-residential construction firms also saw an increase, with 7,600 positions added for the month and 155,100 (3.3 percent) since January 2023.

Regarding supply dynamics, Ethyl Acetate plants have sustained a steady operational rate owing to stable demand from downstream industries. The USA Purchasing Managers' Index (PMI) value has surpassed 50, signalling an expansion in the manufacturing sector in Ethyl Acetate plants, indicating a significant enhancement in manufacturing activity. Since December 2023, the PMI value has notably risen, reflecting positive trends in overall manufacturing activity and the Ethyl Acetate Market. Moreover, import prices from the US market have decreased, suggesting a reduction in Ethyl Acetate import costs. Additionally, as of this week, there have been no reported disruptions in the supply chain.

In terms of demand, there hasn't been a significant change in interest observed from Ethyl Acetate’s downstream industries like Ethyl Acetate Construction. However, the construction sector confronts notable challenges, including labor shortages and subdued demand, primarily attributed to persistent high-interest rates limiting the purchasing power of downstream consumers. Despite these obstacles, the Ethyl Acetate’s downstream construction industry has exhibited signs of growth. Moreover, there is an anticipation that the construction industry will sustain its strength throughout the first quarter of 2024.