Vietnamese Ethyl Acetate Prices Rise Amidst Improving Trading Activities

Ho Chi Minh City (Vietnam): In the beginning of June 2024, Ethyl Acetate prices witnessed an upturn in the Vietnamese market. Despite average terminal market consumption, downstream purchasing enthusiasm for Ethyl Acetate remained high. However, enterprise shipments were limited, leading to increased inventories of Ethyl Acetate. To encourage downstream participation, factories reduced their quotations, and traders offered lower rates due to ample Ethyl Acetate market inventories.

The Vietnam Manufacturing PMI in May 2024 remained unchanged from the previous month, marking the second consecutive month of increased factory activity amid solid growth in new Ethyl Acetate orders and faster production expansion. Foreign sales increased, though not as much as total new business. Meanwhile, delivery times lengthened slightly due to goods shortages and geopolitical challenges. On the price front, input cost inflation accelerated to its highest level since June 2022, driven by higher oil and fuel costs amid currency weakness.

Demand from the Ethyl Acetate downstream industry, such as construction, remained low, leading to fewer inquiries. However, there is anticipation of increased demand from the downstream industry as the government implements various measures, such as expanding loan scopes and assessing financial institutions' profitability in the real estate market. It is expected that the demand landscape in the Vietnamese market will likely rise, leading to higher downstream inquiries. Ethyl Acetate imports from the international market, specifically from China, are likely to remain low, which may lead to a decline in Ethyl Acetate prices in Vietnam.

There were no major supply chain disruptions reported this week. However, the supply in the market remained sufficient to meet downstream demand amidst ample inventories. The upstream methanol market has experienced fluctuations, but methanol prices are expected to improve. At the beginning of the week, the domestic Ethyl Acetate Feedstock methanol market was strong, supported by external downstream procurement.

The Ethyl Acetate downstream construction industry's demand has grown at a steady rate, resulting in minimal new inquiries. Nevertheless, the real estate sector exhibits encouraging signs of recovery, with several resort and industrial projects being resumed and new housing supplies entering the market. Since the beginning of the year, various resort projects, including Flex Home beach apartments in Libera Nha Trang, have resumed, along with new housing projects such as Vinhomes Royal Island in Hai Phong and Eaton Park in Ho Chi Minh City. Government support for social housing development includes updated legal frameworks and preferential interest rates, with 129 projects comprising 114,934 units under construction. In the office segment, sustained demand from foreign manufacturing and IT enterprises is expected to bolster markets in Hanoi and Ho Chi Minh City. These trends suggest a potential rise in demand and subsequent inquiries soon.