Asian butyl acetate prices hit a seven-month high recently, buoyed by spot supply constraints and import demand, and are expected to continue until November. The market was buoyant in the week to October 16, pushing up butyl acetate and ethyl acetate prices. Strong price increases in acetic acid and n-butanol (NBA), combined with reduced production in the region, have led to a tight market supply.
Low operating load rates at most production facilities limit spot supply. Regional suppliers raised inquiries for late October/November goods. A strong rise in China's ethyl acetate prices, due to the high cost of raw ethanol and tight supply, also boosted sentiment, with local producers raising prices.
In east China, due to active replenishment and strong domestic demand, the price of ethyl acetate rose from the closing price of 5680~5700 RMB/ton before the Golden Week holiday at the end of September to 5750~6000 RMB/ton (outbound price). PETRONAS Chemicals Group operates a 50,000-ton/year butyl acetate plant in Kerteh, Terengganu state, with a 90% load rate.
Due to active trade, about 500 tons of butyl acetate delivered in Southeast Asia settled at $810~ $820 / ton (CFR) at the end of October. Spot prices for butyl acetate CFR in Southeast Asia averaged $815 a ton as of October 16, up $15 a ton from the previous week and the highest level since March 13, ICIS data showed.
As of October 16, spot prices for ethyl acetate rose to their highest level in seven months, averaging $815 a tonne. It is understood that Nippon Masaaki Rou is also carrying out a planned overhaul of its 75,000 ton/year ethyl acetate plant in Hiroshima and Osaka until mid-November.