Quarter 1 The domestic butyl acetate market is sluggish, the loss is serious, the start of construction is sluggish, the end point demand is weak, the price continues to fall, etc., and the enterprise is in trouble.
Jinlianchuang - Xu Na
Quarter 1 The domestic butyl acetate market is sluggish, the loss is serious, the start of construction is sluggish, the end point demand is weak, the price continues to fall, etc., and the enterprise is in trouble.
Profit side, as can be seen from Figure 1, domestic butyl acetate was basically in a state of loss from May to October 2017. The loss performance from January to March 2018 was also very obvious. Quarter 1 average theoretical profit was -54 yuan/ton, compared with 208 yuan/ton in the same period last year. From this perspective, the situation of enterprises this year is significantly weaker than that of last year.
Data Source: Jinlianchuang
In addition, it is worth noting that some enterprises extract all their raw materials externally, which does not have a cost advantage compared to the raw material supply enterprises. This disadvantage is particularly obvious in the loss-making stage. It is roughly estimated that due to the huge profits of acetic acid (2,000 yuan/ton) and n-butanol (1,300 yuan/ton), even if the price of butyl acetate drops sharply, the entire industrial chain still has a profit of more than 1,000 yuan for the butyl ester of raw material supply enterprises.
On the basis of the above, based on the loss consideration, the overall operating rate of the enterprise is not high. The average operating rate of domestic butyl acetate in Quarter 1 in 2018 was 50%, and the average operating rate in the fourth quarter of 2017 was as high as 70%. The current domestic butyl acetate plant situation is as follows:
Data Source: Jinlianchuang
The demand side is weak. After the Spring Festival, the recovery of paint and coatings and other industries is limited, and the level of rigid demand for raw materials has dropped significantly. And based on the high price of acetate in the fourth quarter of 2017, and even the high price of other raw materials, the profit of paint and paint is limited, so the start of construction is not high after the festival. Therefore, the industry has announced the price increase plan in April. Butyl acetate is also waiting for the recovery of the end point market.
Note: The data in this paper is for reference only, and some estimates are biased and not used as a basis for operation.
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