The Asia Pacific region emerged as the largest market for butyl acetate. This region dominated the global butyl acetate owing to the advancement of growing countries like China and India, which are among the essential customers of butyl acetate.
In Q1 2024 the Asian butyl acetate market declined by 0.34% as compared to the Q4 of 2023. The Chinese market saw a rapid drop in inventory levels, driven by strong demand, especially from the paints and coatings sector. Several factors have influenced butyl acetate prices, including weak demand from the construction sector, high inventory levels, and low import costs from China. The upstream feedstock industries were unable to offer the needed support for the market, which ultimately caused a decline in butyl acetate prices. On the other hand, in Malaysia butyl acetate market also showed a downward trend from January to March. By the end of the quarter in Malaysia, the price of butyl acetate reached 1,028 USD per metric ton in March. In contrast, Singapore butyl acetate market showed an upward trend in Q1, and prices reached 1,047 USD per metric ton in March.
In Q2 2024, the butyl acetate market in the APAC region experienced a significant price surge from the previous quarter driven by several factors. Steady buying interest from downstream buyers, restricted shipments from manufacturers, and ongoing inventory shortages played a key role. Additionally, increased restocking efforts and strong demand from industries like construction further contributed to the rise. Meanwhile, challenges in the Chinese market had a positive effect on prices in Turkey and Vietnam, as China is a significant exporter to both countries. However, as the quarter progressed, prices began to decline due to supply constraints that caught up with the market dynamics. These fluctuations were influenced by various factors, including changing demand patterns in downstream sectors. By the end of the quarter in June, the price of butyl acetate in the China settled at 949 USD per metric ton.
In Q3 2024, the butyl acetate market will continue to experience upward price pressure due to ongoing supply limitations. The growing demand for adhesives, paints, coatings and food items will expect to boost the butyl acetate market in the APAC region. As of July 2024, butyl acetate prices were fluctuating and reflecting around 0.13 % decrease from the previous month.
In Q4 2024, the Asia-Pacific region will experience upward trend in butyl acetate prices. Key factors driving these price fluctuations include differing demand trends across various countries, particularly influenced by China’s strong performance. Additionally, rising raw material prices will affect production costs, while ongoing trade tensions will disrupt regional supply chains. In the short term, the butyl acetate market will experience growth primarily due to rising demand from the paints, coatings and automotive industry. Moreover, the presence of major industry players and the region’s status as a leading importer of butyl acetate will expect to drive market growth throughout the forecast period.