SunSirs: The Domestic Acetone Market Continued Its Downward Trend Last Week

Price trend:

The domestic acetone market weakened and declined, with no significant fluctuations in market fundamentals. Traders focused on pushing sales, while downstream demand followed suit, resulting in limited market activity. According to data monitored by SunSirs, the average price of acetone in East China was 4,200 RMB/ton on November 14, but fell to 4,163 RMB/ton on November 21, a decrease of 0.87%.

Market Analysis

From the supply side, the overall operating rate of domestic phenol and acetone plants had increased, mainly due to the operations of the first phase of phenol and acetone plants at Fuyu Petrochemical and Zhejiang Petrochemical, with the overall operating rate rising to 80%. Regarding ports, cargoes arrived as scheduled, replenishing port inventories to 26,000 tons. Market supply was relatively abundant, and traders had a strong willingness to sell. After a period of price support in the first half of the week, offers had declined.

From the demand side, the market remained low, with end-user factories and traders replenishing their stocks. Downstream bisphenol A (BPA) plants were expected to increase their operating rates, leading to increased demand for acetone. Isopropanol, MMA, and MIBK operating rates had changed slightly, resulting in minimal changes to acetone demand. From the cost side, both the supply and demand of raw material benzene had increased slightly, continuing the supply shortage, and prices are expected to remain relatively strong in the short term.

The following are the acetone quotations in major markets across the country on November 21:

Market outlook

According to SunSirs, costs will rise slightly, but supply will remain under pressure and demand will remain flat. With multiple factors at play, the acetone market is expected to trade within a range next week. If costs continue to rise, prices may see a slight increase.

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