US Butyl Acetate Prices Steady in the US Amid Balanced Supply-Demand dynamics

Texas (USA): In the USA, Butyl Acetate prices have remained stable as of this week, mainly due to adequate inventory levels in the US market, prompting sellers to offer inventories at lower market rates. Methanex's monthly contract pricing has observed a surge in Butyl Acetate Feedstock Acetic Acid prices in the Chinese market.

Moreover, the PMI value staying above 50 indicates expansion in the manufacturing sector. With heightened demand from the Butyl Acetate downstream construction sector, inquiries from acetate industries have increased. Additionally, production costs have remained low as Europe exits its heating season, resulting in decreased demand for natural gas from the continent. Nationwide, data on construction sector jobs, encompassing both residential and non-residential construction, showed that 31 states reported an increase in February compared to January, while 17 states experienced a decline. Year-over-year, the construction sector in the U.S. saw an increase, adding more jobs compared to February 2023.

The Bureau of Labor Statistics recorded a nationwide employment surge in February, following a gain in January. Texas led the way in job creation with new positions, trailed by Illinois and Michigan. Conversely, seven states reported job losses, with Florida experiencing the most substantial decline. Iowa boasted the highest percentage increase in employment, while North Dakota suffered the largest decline between January and February.

Texas led in job gains, while New York reported a loss of construction sector jobs. Alaska boasted the highest annual growth rate in the construction sector, while North Dakota experienced the largest decline. Furthermore, there is anticipation of Butyl Acetate price increases due to rising Butyl Acetate upstream crude oil prices. Currently, domestic Butyl Acetate plants are operating at optimal levels to meet both domestic and international downstream demand.

This has resulted in sufficient inventories in the market, which has dampened the growth of the Butyl Acetate market. Additionally, Acetic Acid prices have shown an upward trend this month due to reported increases by Methanex, leading to higher production costs. Initially, the Butyl Acetate upstream raw material Acetic Acid market experienced a decline, followed by a subsequent increase. Downstream olefin factories in mainland USA decreased their Acetic Acid procurement volume, contributing to prevailing cautious sentiment in the market.

The focus was on maintaining necessary procurement amid weak downstream demand and a subdued market, leading to a downturn in the Acetic Acid market. This week marked a notable surge in the Butyl Acetate market, driven by heightened demand from the Ethyl and Butyl Acetate downstream sectors, resulting in increased inquiries.