SunSirs: The Supply Was Tight in February, and the Acetone Market Continued to Rise

Price trend

The domestic acetone market continued to push up. On the 21st, the negotiated price in East China was 5,700-5,850 RMB/ton, with a daily increase of 150-200 RMB/ton. According to the monitoring data of SunSirs, the negotiated price of acetone in East China was 5,287 RMB/ton on February 1, and 5,862 RMB/ton on February 21, with a cumulative increase of 10.87% in February.

Analysis review

Since February, the domestic mainstream factories had repeatedly raised the listing price, which strongly supported the market. Affected by the continuous tight supply in the market, petrochemical enterprises had actively raised the listing price for many times, with a cumulative increase of 600-700 RMB/ton. In the early stage, the phenol and acetone factory suffered losses, and the overall operating rate of the phenol and acetone factory was 80%. Boosted by the tight supply, the factory was more active in raising the price.

The import supply was insufficient, the port inventory continued to decline, and the domestic production in some regions was limited. On the one hand, the inventory of acetone at Jiangyin Port was 25,000 tons, down 0.3% from last week. Recently, the arrival of ships was insufficient, and the inventory of the port might continue to decline. On the other hand, the contract volume in North China was exhausted near the end of the month, the domestic resources were limited, the downstream followed up just in needed, the supply of goods was difficult to find, and the price was up.

As the acetone continued to rise, most of the downstream industries maintained replenishment on demand. Because the profits of the downstream industry were fair, the operating rate was generally stable, the follow-up was just on demand and the transaction developed steadily.

Market outlook

In the view of SunSirs, the acetone market continued to operate steadily. The continued tightening of the supply side in the short term strongly supported the market. Overseas market prices were rising and exports were improving. The operation of domestic downstream units was stable under the trend of profit, and the demand for raw materials continued. The domestic resource contract was limited near the end of the month, and the traders had a positive attitude, which kept pushing up the price.

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