N-Butyl Acetate Market Turns Bullish on Strong Demand, Higher Feedstock Costs

Key Highlights:

• Price Surge: Increased by ₹1/kg due to higher demand and rising feedstock costs (Acetic Acid, N-butanol).
• Strong Demand: Paints, coatings, automotive, and inks sectors driving consumption; expected to remain high until June 2025.
• Global Market Trends: FOB China prices rose by 500 Yuan/MT month-on-month; crude oil declined by 1.21%.
• Expert Outlook: Prices to stay bullish with limited inventory; buyers are advised to secure stocks early.

Price Hike Driven by Demand & Costs

• N-butyl acetate prices have been revised upward by importers, increasing by ₹1/kg to ₹88++ per kg ex-Kandla on a 60-day credit basis.
• Accord Organics, a prominent domestic producer, has also raised its base price by ₹1/kg, now quoting ₹88.00++ per kg ex-Ahmednagar for advance payments.
• The price surge is largely driven by a pickup in procurement activity from the paints and coatings sector as seasonal demand strengthens. Furthermore, higher feedstock costs for Acetic Acid and N-Butanol continue to escalate the conversion costs for N-Butyl Acetate manufacturers.
• On a weekly scale, N-butyl acetate prices have risen by ₹2/kg, reflecting strong market sentiment.

Supply & Demand: Sustained Demand Across Industries:

• The demand for N-butyl acetate remained firm throughout February 2025, supported by robust production activity in the automotive coatings and inks industries. Manufacturers have started stockpiling inventories in anticipation of seasonal demand, a leading importer confirmed.
• This week, the Asian benchmark FOB China prices for N-butyl acetate rose by 25 Yuan, settling at 7,400 Yuan/MT FOB China—marking a nearly 500 Yuan/MT increase month-on-month.
• In India, demand is expected to gain further momentum and remain strong until June 2025, primarily driven by seasonal consumption from the paints and coatings industry.
• India's monthly N-butyl acetate consumption is estimated at approximately 6 kt, with the paints and coatings sector being the largest consumer. Additional demand is also seen from industries such as bulk drugs, personal care, fragrances, and leather.

Market News: Global Market Trends & Price Movements

• In the global market, crude oil benchmark WTI saw a marginal decline of 1.21%, settling at $67.54 per barrel, while natural gas prices fell by 1.09%, reaching $4.07/MMBtu.
• Jiangsu Sierbang Petrochemical (Sailboat) has restarted its PDH Plant. The Plant is located in Lianyungang, Jiangsu, China with Propylene production capacity of 700,000 Tons/Year.
• Idemitsu Kosan has restarted its Paraxylene (PX) Unit in early-March 2025, which was shut on 19th February, 2025. The Unit is located in Chita, Japan with a production capacity of 357,000 Tons/Year.
• Jiangsu Hongwei Chemical has shut its Styrene Monomer (SM) Plant on 4th March, 2024. The Plant is located in Lianyugang, Jiangsu, China with a production capacity of 450,000 Tons/Year.

Expert Outlook & Market Strategy

Expert anticipates that N-Butyl Acetate prices will continue their bullish trend this week, supported by strong demand from key consumers in the paints and coatings industry, coupled with limited inventory availability at ports. Buyers are advised to capitalize on inventory opportunities as seasonal demand strengthens.