Price trend
The market performance during the golden September and silver October period fell far short of expectations. The domestic acetone market continued its downward trend since October, as of October 17, reaching a new low for the year. The East China acetone market averaged 4,408 RMB/ton from October 8th to 4,120 RMB/ton on October 17th, a decrease of 6.54%.
Analysis review
On the supply side, Sinopec had been continuously lowering its listed prices, as of October 17, down to 4,200 RMB/ton in East and North China. Due to the limited number of working days this month, traders were accelerating their contract turnover, and under pressure, they were inevitably willing to offer discounts. October shipments of acetone in East China totaled 27,700 tons, with November cargoes in transit at 12,500 RMB/ton. As of October 17, the operating rate of phenol-acetone plants was over 75%.
On the demand side, downstream factories were maintaining a restocking pace based on just-in-time demand, cautiously placing orders, and limited actual trading volume. Downstream bisphenol A plant operating rates were expected to increase, leading to a surge in acetone demand. Isopropyl alcohol, MMA, and MIBK operating rates had seen slight fluctuations, with little change in acetone demand. From a cost perspective, both the supply and demand for raw material benzene increased slightly, continuing a supply deficit. It is expected that short-term prices will consolidate to be stronger.
The acetone quotations in major mainstream markets across the country on October 17 were as follows:
|
Regions |
Quotations on October 17 |
Changes in October |
|
East China |
4,100 RMB/ton |
-300 RMB/ton |
|
Shandong |
4,250 RMB/ton |
-350 RMB/ton |
|
Yanshan area |
4,250 RMB/ton |
-300 RMB/ton |
|
South China |
4,270 RMB/ton |
-300 RMB/ton |
Market outlook
SunSirs predicts that the operating rate of domestic phenol-acetone plants remained at 78% in the recent times, with port inventories fluctuating around 30,000 tons, primarily driven by inventory reduction. On the demand side, the operating rate of the downstream bisphenol A industry declined, and costs were unlikely to provide any positive support. In the short term, acetone prices will remain weak.
If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.
