Since the end of March, domestic butyl acetate prices have risen rapidly. As of today, the local mainstream prices in East China have increased by 1,750 yuan/ton compared with the end of March, and the rate has reached 24%. At present, the domestic price of butyl acetate is also the highest point in the past five years.
In the past two years, safety and environmental protection inspections have continued to increase. During the year, real estate, building materials, and other related industries have continued to weaken due to the increase in the regulation of domestic demand. The demand for terminals has continued to slump during the year, and domestic butyl acetate production capacity has become surplus. Therefore, the fundamentals of supply and demand have not changed. The positive effect of butyl acetate on the price of butyl acetate was mainly driven by the raw material n-butanol.
In April, Sichuan Petrochemical, Suihua Yongli, Tianjin, Jilin Petrochemical, Yamba and other n-butanol installations were successively overhauled and concentrated, resulting in continued supply contraction and price increase. In May, the Suihua plant extended parking for some reason. In the case of overhaul and delayed restart, the strong upward trend in the market continues to continue, and there is even more strong support for propylene. Under the circumstances that the manufacturers’ cost support is strong, the price increase continues. Take the Jiangsu market as an example. As of today, the local butanol price has risen by 26%. At the same time, the price has also hit a record high in the past decade.
Although raw material butyl acetate prices have continued to rise, raw materials boosted, but limited by the weak demand, butyl acetate is still relatively slow relative to n-butanol gains, which also led directly to the loss of butyl acetate plant sales continue. From the figure below, we can directly see that during the year, the butyl acetate plant maintained a loss of sales status, and it did not improve until the second half of May.
Behind the huge cost pressure, leading manufacturers to produce positivity is not high. Tangshan Jidong butyl acetate plant has been converted to n-propyl acetate, Jinyimeng butyl acetate plant also stopped in early April, heard no restart during the year; and Guangxi Xintiande and Guangdong Li Anan new butyl acetate device is also late Late in production, the effective production capacity and production of butyl acetate may fall back in time during the year.