Price trend

In June, the focus of the domestic acetone market mainly fell. The acetone market in East China was trading at an average price of 5,450 RMB/ton since June 1st, but dropped to 5,180 RMB/ton on June 30th, a decrease of 4.95%. From the perspective of the national acetone market, there was equal downward potential.

Analysis review

In the first ten days of the year, the supply was sufficient, the price was quoted low under the pressure of traders, and the social resources were sufficient after the Dragon Boat Festival. The port inventory rose to 28,000 tons, and the supply of goods was abundant. The market center declined, falling to a market low of 5,250 RMB/ton. After a period of terminal replenishment, the market once again entered a state of sluggish trading.

The geopolitical situation had changed, with a sharp drop in crude oil and negative costs in the latter half of the month. Crude oil drove the decline of benzene, and styrene experienced a deep decline in a single day. benzene had fallen, dealing another blow to the already lukewarm acetone market. As the end of the month approached, the market had fallen below 5,200 RMB/ton, and trading was deadlocked.

As the end of the month approaching, there will be little positive news in the later stage, and the overall market was in a downward trend. At the end of the month, the market fell to the lowest point of the month, and negotiations in the East China region were at 5,150-5,180 RMB/ton.

The acetone offers in major mainstream markets across the country on June 30th were as follows:

In terms of equipment in June: Early shutdown equipment such as CNOOC Shell, Yanshan Petrochemical, Jilin Petrochemical, Huizhou Center Phase I, and Gaoqiao Petrochemical were still in operation. The 350,000 ton/year unit of Tianjin Petrochemical was shut down for 40 days and resumed operation on June 2nd. The 320,000 ton/year phenol ketone unit of Yangzhou Shiyou was shut down for maintenance on June 13th, lasting about 30 days.

Market outlook

It is expected to remain weak and difficult to change in July. From the supply side, the Zhenhai Refining and Chemical Phenol Ketone Plant planned to produce products in mid July, resulting in an increase in domestic acetone supply. From the perspective of imports, Saudi Arabia's facilities had been shut down for maintenance, Middle Eastern sources were limited, and Thailand's import resources were normal. As of June 30th, it appeared that the import volume had slightly decreased. From the perspective of demand, downstream bisphenol A and isopropanol units had been improved, but overall procurement was still mainly based on demand. From a cost perspective, the external environment remained weak, and benzene is expected to continue to decline, making it difficult to support acetone. It is expected that the acetone market will continue to operate weakly in July.

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