SunSirs: The Domestic Acetone Market Continued to Weaken Last Week (August 15-22)

Price trend

The domestic acetone market continued to weaken. Acetone prices nationwide fell from an average of 4,780 RMB/ton on August 15th to 4,720 RMB/ton on August 22nd, a 1.26% decrease. The price of acetone in East China showed a trend of first falling and then rising.

Analysis review

The domestic acetone market saw a narrow decline. Sinopec lowered its listed price by 100 RMB/ton to 4,700 RMB/ton during the week. As of the weekend, August acetone shipments in East China totaled 41,000 tons, with less than 10,000 tons in transit. Raw material prices fell slightly during the week, weakening cost support. However, phenol-acetone manufacturers remained loss-making, with operating rates around 75%. Downstream factories were primarily driven by demand, with modest production runs and little interest in stockpiling, primarily followed up with small orders.

Acetone quotes in major markets nationwide on August 22nd were as follows:

Market outlook

According to SunSirs, acetone is expected to remain strong next week. From a supply perspective, domestic plants saw little change, with the phenol-ketone operating rate at 78%. Imports were gradually replenishing, and port inventories remained high. From a demand perspective, downstream bisphenol A and isopropyl alcohol plants saw some increases, while MIBK had seen little fluctuation. Overall, procurement remained primarily on-demand. However, demand for solvent products is expected to improve after the hot weather subsides. From a cost perspective, the benzene market was weakening. The acetone market was temporarily at a low level and is expected to remain stable or see a slight increase next week.

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