Throughout May 2026, the spot market for acetone in East China experienced a continuous downward trend, with no significant signs of a rebound. As the country's primary distribution hub, market movements in East China effectively dictated acetone prices across the nation. Prices exhibited a stepwise decline: mainstream quotations stood at 7,715 RMB/ton at the beginning of the month but fell to 7,077 RMB/ton by month-end, marking a cumulative monthly decrease of over 8%.
Domestic phenol and acetone producers have followed suit by lowering their ex-factory prices; leading manufacturers in Shandong province have repeatedly cut their quotes throughout the month—with each reduction ranging from 50 to 100 RMB/ton—further weighing on market sentiment and resulting in an overall weak performance within the spot market.
Supply Side: Production units are operating at high rates, resulting in an overall abundant supply of goods. In May, the operating rate of domestic phenol-acetone co-production units remained at a high level of 84%, with major facilities in the East China region running at nearly full capacity. Imports from Southeast Asia arrived at ports as scheduled, effectively offsetting the shortfall in supplies from the Middle East and ensuring ample circulation of spot goods in the market. Although inventory levels at East China ports are currently at a historical low for this time of year, the lack of restocking demand from downstream sectors means that these low inventory levels are unable to provide price support.
Demand Side: Insufficient demand during the off-season, with significant drag from downstream sectors. Weak demand serves as the primary catalyst for the current market downturn. During this traditional off-season for the chemical industry, Bisphenol A production is operating at low capacity, weighed down by sluggish demand from the downstream epoxy resin sector; demand for phenolic resins from end-use sectors—such as construction materials and adhesives—remains lackluster; and procurement volumes for isopropyl alcohol and pharmaceutical intermediates remain at low levels. Across the entire industrial chain, downstream players are maintaining lean inventories and limiting purchases strictly to immediate, essential needs; there is no concentrated stockpiling activity, market turnover is sluggish, and the phenomenon of "prices without volume"—where quoted prices exist but actual transactions are absent—is particularly pronounced.
Costs and Market Sentiment: Insufficient Support and Strong Bearish Sentiment. Despite a rise in international crude oil prices, upstream pure benzene prices continue to weaken; consequently, cost support for acetone feedstock has eroded, preventing the positive impact of crude oil gains from filtering down to the downstream end of the supply chain. Concurrently, prevailing bearish sentiment has prompted traders to proactively lower prices to offload inventory and mitigate risk. With downstream buyers maintaining a wait-and-see stance, a negative feedback loop of price reductions has emerged, further driving down market prices.
According to SunSirs, the East China acetone market is unlikely to see any significant recovery in June, with the overall trend expected to remain weak and volatile. In the short term, tightening supply may allow the market to briefly halt its decline and stabilize; however, as maintenance shutdowns conclude and production units restart in late June, market supply is expected to become abundant once again. Furthermore, given that the downstream sector is currently in its off-season—combined with the fact that benzene prices still have room to fall—the potential for a market rebound remains limited.
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