For the Quarter Ending September 2024
North America
In Q3 2024, Methoxy propyl Acetate pricing in North America witnessed a mixed trends with declining prices in the first month of Q3 2024 amid weak prices of Feedstock Acetic Acid.
In second month prices of Methoxy propyl Acetate increased amid inadequate supply to meet downstream demand and in the last month of Q3 2024 the prices of Methoxy propyl Acetate declined amid lower demand from the international market and return of Adequate supply to meet downstream demand.
The market in the USA, experiencing the most significant price changes, saw a surge in prices for Methoxy propyl Acetate. Contributing to this trend were factors such as increased demand from the construction sector, firm prices of feedstock acetic acid, and a rebound in construction employment, particularly in the paints and coatings industry. Despite a bearish outlook due to weak performance in the construction industry, there were positive shifts expected with rising methanol prices. The quarter recorded a decrease in the same period last year and a slight dip from the previous quarter. Notably, there was a price increase between the first and second half of the quarter, reflecting an overall positive pricing environment amidst the changing market dynamics.
APAC
The third Quarter of 2024 has been a declined period for Methoxy Propyl Acetate pricing in the Asia Pacific Region. The market maintained a consistent sentiment due to factors such as stable supply levels, moderate demand from downstream industries, and steady input costs. However, China experienced notable price changes during this quarter. The market in China saw fluctuations influenced by factors like varying demand from the construction sector, seasonal trends, and pricing dynamics in the global market. Despite challenges, the overall price change was recorded at -4% from the previous quarter in 2024. The comparison between the first and second half of the quarter showed no significant price variance, indicating a stable pricing trend. The quarter-ending price for Methoxy Propyl Acetate in China stood at USD 1295/MT FOB Qingdao. Overall, the quarter witnessed a stable pricing environment with minor fluctuations and a focus on maintaining market equilibrium.
Europe
The European Methoxy propyl Acetate market in Q3 2024 exhibited mixed trends, with prices declining in the first half but recovered in the second half, though the overall trend remained bearish. This fluctuation was largely driven by lower feedstock acetic acid prices, which reduced production costs. Key factors influencing this trend included lower upstream methanol prices, decreased import costs from China, and weak demand from downstream sectors like plastics and polyester. An oversupply of PTA due to resumed plant operations, coupled with a drop in crude oil prices, further dampened market sentiment leading to lower prices of feedstock Acetic acid as major downstream PTA and Upstream Crude market remained bearish. The Eurozone's manufacturing activities remained low, signalling continued contraction in the sector. The Germanys saw notable price changes, with Methoxy propyl Acetate prices increasing compared to the same quarter last year but decreasing from the previous quarter in 2024. Prices between the first and second halves of the quarter dropped, reflecting the overall downward pricing environment in the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Methoxy Propyl Acetate market initially saw a significant price increase due to heightened market activity and limited supply, causing traders to offer stocks at premium rates.
Despite strong manufacturing activity and increased new orders from Europe and Asia, the market later experienced price declines due to ample inventories, weak downstream demand, and rising production costs driven by higher natural gas prices. Economic uncertainties and fluctuating interest rates in the construction sector, a key consumer, also affected prices.
By the latter half of the quarter, Methoxy Propyl Acetate prices continued to decline, particularly in the USA. Although demand from the construction sector remained steady, it was insufficient to offset the supply pressure from excess inventories. Seasonal factors and cautious buyer behaviour further contributed to the price drop. Overall, prices fell compared to both the previous quarter and the same quarter last year, reflecting a continued downward trend throughout Q2.
APAC
In Q2 2024, the Methoxy Propyl Acetate market in the APAC region experienced a pronounced uptrend in prices. The quarter was marked by robust downstream demand and constrained supply, leading to significant price elevations. Several factors influenced this market dynamism: increased consumption at terminal markets, steady downstream purchasing behaviour, and restricted enterprise shipments that resulted in reduced inventory levels. Encouraging downstream engagement through consistent factory price hikes also contributed to higher market prices. Furthermore, fluctuations in raw material costs, notably acetic acid and crude oil, exacerbated production expenses, thereby elevating Methoxy Propyl Acetate prices. Additionally, the approaching holiday season prompted restocking activities, adding to the bullish market sentiment.
Focusing on China, the country witnessed the most substantial price changes within the region. The overall trend in China was characterized by increasing prices due to heightened restocking activities and improved consumer confidence. The seasonal impact further bolstered this uptrend as holiday preparations necessitated greater inventory accumulation.
The consistent increase in prices throughout the quarter indicates a highly positive pricing environment, driven by strong market fundamentals and strategic restocking initiatives. No significant plant shutdowns or disruptions were reported, further stabilizing the supply chain and supporting the observed price increases.
Europe
Throughout Q2 2024, the European Methoxy Propyl Acetate market experienced mixed pricing trends due to various economic and supply chain factors. Upward price trends were primarily driven by heightened production costs for feedstock Acetic Acid and sustained high Methanol prices. Geopolitical tensions in the Red Sea extended shipment routes and increased freight costs, while elevated energy prices, especially for Natural Gas, further added to production expenses. Despite these challenges, robust demand from the construction sector, buoyed by increased foreign direct investment and positive economic sentiment, sustained high market activity.
Germany saw the most notable price changes. Methoxy Propyl Acetate prices in Germany increased compared to the same quarter last year and from the previous quarter in 2024, reflecting broader regional trends. Warmer weather led to consistent construction activity, maintaining strong demand. Prices also increased from the first to the second half of the quarter, underscoring persistent demand and constrained supply dynamics.
However, ending Q2 2024, prices began to decline due to destocking market activity somewhat stabilizing supply dynamics. Despite the strained supply, the overall sentiment in the pricing environment remained robustly positive, driven by enduring market demand and escalating production costs.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, Methoxy propyl Acetate prices experienced a significant downturn in North America. This decline was chiefly influenced by two key factors: a lack of strong cost support stemming from Acetic Acid, its feedstock, and an overabundance of inventory saturating the market.
The absence of cost pressure from Acetic Acid removed a crucial pricing floor for Methoxy propyl Acetate, while the surplus inventory situation hindered market expansion and further drove prices downward. The impact was notably severe in the United States, where prices dropped sharply compared to the previous quarter.
This decline persisted throughout the quarter, indicating a sustained downward trajectory. By the quarter's end, Methoxy propyl Acetate prices in the US market had declined. In summary, the pricing environment for Methoxy propyl Acetate in North America during Q1 2024 was overwhelmingly negative, characterized by weak cost support, excessive inventories, and a continual downward market trend.
APAC
In the first quarter of 2024, Methoxy propyl Acetate prices in the APAC region experienced a notable decline, influenced by various factors. The overall trend was negative, with prices witnessing a significant decrease of -10% compared to the same quarter last year, continuing the downward trajectory from the preceding quarter, which saw a decline of -19%. Moreover, prices dropped by -6% between the first and second half of the quarter. China saw the most significant price shifts, characterized by a consistently negative pricing environment marked by continual declines. This can be attributed to factors like subdued demand from downstream industries such as construction and elevated inventory levels in the market. Additionally, challenges in the Chinese economy, such as a slowdown in the construction sector and ongoing debt crises, further contributed to this decline. The latest quarter-ending price for Methoxy propyl Acetate in China was recorded at USD 1312 per metric ton FOB Qingdao, emphasizing the prevailing downward sentiment in the pricing environment. Overall, the APAC region's Methoxy propyl Acetate market has witnessed declining prices driven by weak demand and high inventory levels.
Europe
In the first quarter of 2024, the European Methoxy propyl Acetate market witnessed a decline influenced by several factors. Key among these was the performance of its primary feedstock, Acetic Acid, which experienced subdued pricing, thus impacting Methoxy propyl Acetate pricing. Moreover, stable import prices from China, a significant exporter to the region, failed to bolster Methoxy propyl Acetate pricing. The European Central Bank's decision to maintain a relatively high interest rate at 4.5% further affected the market by reducing the purchasing power of downstream consumers, thereby dampening demand.
The Purchasing Managers' Index (PMI) signalled a contraction in the manufacturing sector, typically associated with reduced chemical demand, including Methoxy propyl Acetate. On the supply side, no significant disruptions were reported, ensuring ample inventory levels to meet industry demand.
Despite expectations of price stabilization or potential increases due to anticipated rises in raw material costs and energy prices, overall market sentiment remained cautious, influenced by broader economic signals and sector-specific dynamics such as ongoing challenges in the construction industry, a major consumer of Methoxy propyl Acetate. While these products experienced steady demand, it was insufficient to significantly alter Methoxy propyl Acetate prices positively within the quarter
