SunSirs: The Domestic Acetone Market Fell to the Lowest Point of the Year in September

Price trend

The September sales fell short of expectations, and the domestic acetone market continued its overall decline, reaching a new low for the year. The East China acetone market averaged 4,525 RMB/ton from September 1st to 4,408 RMB/ton on September 29th, a drop of 2.58%. The national acetone market experienced similar fluctuations.

Factors affecting price changes:

On the supply side, Shenghong Refining & Chemical, Jiangsu Ruiheng, Longjiang Chemical, and Sinopec Mitsui's phenol acetone units all shut down for maintenance for varying lengths last month. As a result, the domestic phenol acetone unit utilization rate dropped to a low of 66%. Shandong Fuyu Chemical plans a 30-day maintenance start date September 28th, and Ningbo Formosa Petrochemical plans a 40-day maintenance start date in mid-October. Contracted imports were arriving steadily, with significant replenishment particularly from Saudi Arabia. Supplies from South Korea, Taiwan, and Singapore were also gradually increasing, while supplies from Thailand may be decreasing.

From the demand side, downstream bisphenol A plant operating rates were expected to increase, leading to a surge in acetone demand. Isopropanol, MMA, and MIBK operating rates had seen slight changes, with little change in acetone demand. From a cost perspective, both the supply and demand for raw material benzene had increased slightly, continuing a supply shortage.It is expected that short-term prices will consolidate to be stronger.

The acetone quotations in major mainstream markets across the country on September 29 were as follows:

In September, East China's acetone cargo volume reached 44,000 tons, with 35,200 tons already arrived, 3,800 tons en route, and 2,000 tons on the way for October. Looking at shipping schedules, subsequent imports are expected to primarily come from South Korea, Saudi Arabia, and Thailand, supplemented by domestic supplies.

Market outlook

SunSirs predicts that pre-holiday stocking at terminal factories had largely been completed, awaiting further clarity after the holiday. Due to the holiday, October saw fewer trading days, putting pressure on contract digestion. With increased supply and a slight increase in demand, the domestic acetone market is expected to remain weak and volatile after the National Day holiday. This year's golden September and silver October sales fell far short of expectations.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.