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Home > Industry News > 2018 In Review: Chinese Butyl Acetate (BAC) Market

2018 In Review: Chinese Butyl Acetate (BAC) Market

2018 In Review: Chinese Butyl Acetate (BAC) Market2019.01.09

BAC Price Trend


In 2018, the price of butyl acetate (BAC) rose to a five-year high under the dual influence of raw materials and supply-demand. As of now, the average annual price of butyl acetate in East China is 7,871 Yuan/MT, up by 21.37% over the previous year. The price peak appeared in May and June at 9100 Yuan/MT, and the lowest price appeared in December at 6,600 Yuan/MT.


 (Data Source: SCI)

Production Capacity And Operation Rate


From 2014 to 2018, domestic BAC production capacity saw a small fluctuations with the capacity increased first then followed by a small decrease; and the output basically showed an increasing trend every year. In 2018, the national butyl acetate plant capacity was about 1.09 million tons and the annual output of butyl acetate was about 667,600 tons in 2018, seeing a 0.27% increase of about 0.18 million tons compared with 2017. The operating rate increased due to the reduction of the production base and the viscosity operation rate was expected to be approximately 61.2%, reaching the highest point in five years.


(Data Source: SCI)



BAC Profit


The production of one ton of butyl acetate uses approximately 0.52 tons of glacial acetic acid and 0.64 tons of n-butanol. In 2018, the two raw materials in the upstream of butyl acetate saw frequent fluctuations with large amplitude, which had  obvious impact on butyl acetate. It can be seen from the figure that in the first five months of 2018, the rising cost of the raw materials resulted in a long-term loss of the butyl acetate. Since June, butyl acetate had risen to a high level, and the cost of the raw materials started to fall sharply, therefore, the profit margin of butyl acetate had been amplified. Recently, butyl acetate had been affected by the weak downstream demand, and the price difference with ethyl acetate has gradually narrowed. Although the price of acetic acid dropped all the way, BAC profit was still limited. It is estimated that as of now the profit of butyl acetate in East China is about 54 Yuan/MT, and the average profit of 2018 is about 105 Yuan/MT.



(Data Source: SCI)

 
BAC Export


In the past five years, the export volume of butyl acetate in China has gradually increased. In 2013-2017, the average annual growth rate of exports was about 28.69%. In 2018, the export volume of butyl acetate remained at a high level, but it was reduced compared with last year. As of November, the cumulative export volume of butyl acetate in China was 87,575 tons, and the annual export volume was expected to be about 95,000 tons, which was 7.4% lower than the level of 102,329 tons in 2017.



(Data Source: SCI)

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