Global Weak performance of N-propyl Acetate amid Dull Feedstock Sentiments

Shanghai (China): The prices of N-propyl Acetate have shown stable market trends. This market development was triggered by weak cost support from the feedstock Acetic Acid. However, the prices of Brent crude were up due to the Red Sea shipping crisis, and OPEC+ output cuts have tightened oil markets. Manufacturing activity remained stable, leading to adequate inventory levels in the market. Moreover, no major supply chain disruptions were reported as of this week. The construction industry in the United States entered 2024 on a high note, with expansion in all segments.

The United States Census Bureau reported on February 1 that construction spending in December 2023 climbed by 0.9 percent at a seasonally adjusted annual rate (SAAR) from November and by 14 percent from December 2022. This trend continues leading to firm demand from the downstream construction industry. Furthermore, on the production front, the prices of natural gas remained on the lower side, leading to lower energy costs. It is anticipated that the prices of N-propyl Acetate will remain rangebound amid the lower market performance of N-propyl Acetate’s feedstock, Acetic Acid.

In Chinese market, The prices of N-propyl Acetate have declined. This market development was triggered by weak cost support from N-propyl Acetate’s feedstock, Acetic Acid. As the N-propyl Acetate’s upstream crude oil prices fell amid rising OPEC+ production. Manufacturing activity remained stable, leading to adequate inventory levels in the N-propyl Acetate’s market. Moreover, no major supply chain disruptions were reported as of this week. Domestic demand from the N-propyl Acetate’s downstream paints & coating industry was on the lower side amid hinderance in demand as it is used in the construction industry, which is debt-crisis-hit. Despite constant government initiatives, demand from the construction industry remains on the lower side. Furthermore, on the production front, the prices of coal remained on the lower side, leading to lower energy costs. It is anticipated that the prices of N-propyl Acetate will remain rangebound amid the lower market performance of feedstock Acetic Acid.

In the Indian market, the prices of N-propyl Acetate have declined as of this week. This development was due to weak support from the prices of imports from the Chinese market, as the Chinese N-propyl Acetate’s downstream paints & coating industry's underwhelming performance led to a decline in domestic inventory pricing. Furthermore, the prices of feedstock Acetic Acid were on the lower side in the Indian market. Additionally, no major supply chain disruptions were reported as of this week. However, demand from downstream industries like the paints & coating industry was firm, as the construction industry, which majorly uses paints & coating, remains active. According to NSO data, the manufacturing sector's strong growth rate of 8.5% and the construction sector's double-digit growth rate of 10.7% and 10.7%, respectively, have contributed to the GDP increase in FY23–24. Anticipation of a potential rise in the prices of N-propyl Acetate amid rising demand from the paints & coating sector is noted.