This week (4.18-22), the domestic butyl acetate market continued the trend of previous weeks, mainly continued to decline, and the decline deepened slightly. Butyl acetate continued to fall in the absence of supply and demand support and cost decline. According to the monitoring of business society, butyl acetate decreased by 2.92% this week. At the weekend, the domestic mainstream quotation of butyl acetate is 9700-10000 yuan / ton.

First of all, from the perspective of cost, acetic acid and n-butanol are out of the market. In particular, acetic acid decreased significantly. The decline in cost is the direct reason for the decline in the price of butyl acetate, and n-butanol rebounded mainly after the decline.

From the perspective of acetic acid, the domestic acetic acid market maintained the decline of last week this week, and the decline deepened. According to the monitoring of business society, the price of acetic acid decreased by 8.43%, and the overall transaction was general. This week, Shanghai Huayi plant resumed production, superimposed the normalization of manufacturers’ devices in Shandong and Henan, and the market supply increased significantly. Due to the impact of public health events, the transportation in some areas is not smooth, especially in the main production areas of central China, Shandong and East China. On the other hand, the problem of transportation and the high freight rate lead to the high inventory of manufacturers, and the prices of manufacturers are naturally under pressure. The sharp decline in cost is the direct reason for the lower price of butyl acetate.

In terms of supply and demand, butyl acetate shows the characteristics of weak supply and demand. On the supply side, the operating rate of manufacturers remains low, but the downstream demand has not improved significantly. The market trading atmosphere is poor, and most operators are bearish. Due to the epidemic, transportation is limited, and the rise of freight rates has further suppressed some demand. The substitution of other raw materials has occupied part of the demand for butyl, and the weak demand is the fundamental reason for the decline of butyl price.

Future forecast: in the short term, the fundamentals of butyl acetate are not good, and the supply and demand side still maintains a short pattern. However, considering that there may be limited room for the decline of acetic acid in the later stage and the rebound of n-butanol, the cost bottoms out in the later stage or forms a certain support for the butyl market. In the near future, we need to pay attention to whether the upstream acetic acid market can be reversed and the operation of downstream plants.