Texas (USA): This week, N-propyl Acetate prices experienced a decrease primarily due to the lack of sufficient cost support from its feedstock, Acetic Acid. The market encountered further difficulties with ample inventories putting pressure on prices, hampering the overall growth of N-propyl Acetate. Moreover, stable natural gas prices added to the subdued market conditions. Overseas demand declined as major international markets engaged in year-end destocking activities, leading sellers to offer inventories at discounted rates. Despite these challenges, demand from the downstream fragrance and flavor industry remained consistently strong. Additionally, the PMI value for the US market remained below 50 as of January, signaling contraction in the manufacturing sector.
During the current week, N-propyl Acetate prices have maintained stability, influenced by the insufficient cost support from its feedstock, Acetic Acid. This stability is further influenced by a high-interest rate of 4.5% set by the European Central Bank, aimed at constraining the purchasing power of downstream industries and controlling inflation. Moreover, import prices from the Chinese market have remained low, indicating a normalization of market inventories. The PMI value for the German market, standing below 50, has remained stable compared to the previous month, indicating a contraction in the manufacturing sector. Consequently, this creates a pessimistic outlook for the N-Propyl Acetate market. M60 Refined Cotton
According to insights from the Chem Analyst Database, the N-propyl Acetate market is anticipated to experience bullish trends throughout February. This positive outlook is underpinned by the escalating value of imports from the Chinese market in Germany. Additionally, there are expectations of upward movements in Natural Gas prices, which are likely to contribute to higher production costs within the N-propyl Acetate industry. Despite these impending cost pressures, demand from N-propyl Acetate’s downstream industries in the US is predicted to remain robust.
Looking ahead to February, a favorable market reflection is anticipated, particularly in the German N-propyl Acetate sector. This optimism stems from the projected increase in prices of Chinese imports, which is expected to stimulate demand from downstream industries. Moreover, the market is poised for a resurgence in restocking activities, potentially resulting in inventory being offered at premium rates. Furthermore, there are expectations of heightened demand from the international market, driven by an improving global economic landscape. Additionally, the N-propyl Acetate markets in both the US and Germany are expected to witness an uptick, largely influenced by the rising energy prices of Natural Gas. This rise in energy costs is anticipated to lead to higher LNG costs in Germany and increased Natural Gas prices in the US, consequently impacting N-propyl Acetate prices in both regions.
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