Acetone market to witness a bullish trend in China
- 23-May-2022 2:20 PM
- Journalist: Li Hua
After a stable trend in the previous week, Today Acetone prices showcased a narrow rise in the Chinese market. Rising the prices of Crude oil and raw materials resulted that rise the price of Acetone. In addition, the trade disruption and the downstream market demand have been pushing up the Acetone prices.
After China's recovery from the rising pandemic cases in Shanghai, the buying and selling activities have gained strength. The relaxation of the lockdown restrictions has allowed to resume the domestic market as well as production activity. In the Chinese market, the prices of raw materials Benzene and Cumene increased, ushering an increase in the price of Acetone. Moreover, the downstream Bisphenol A prices are increasing due to the healthy purchasing activities from the domestic and regional markets, influencing the Acetone values to rise further.
Because of the constrained supply and increased product consumption in the local market, downstream operating rates are increasing dramatically. One of the Beijing based traders quoted that the import price quoted from South Korea rose as the international crude oil price witnessed a hike. Hence, the pricing of China's major refineries has stayed strong. As a result, on May 22nd, Acetone prices settled at USD 868 per tonne.
However, due to the intensified pandemic cases in Wuxi, Jiangyin port transit was constrained, resulting in a decrease in port inventory. Besides, the aforementioned circumstance has led to a decrease in imports. Acetone pricing has been positively impacted by increased demand from end-use sectors and trade interruption.
According to ChemAnalyst, "Acetone prices may climb slightly in the coming weeks, as demand from the downstream Bisphenol A market is expected to surge. However, the Fed's interest rate boost may drag down the crude oil prices which might affect the Acetone values. Furthermore, because the import price quote is projected to remain firm, raw material prices may continue to climb. Tight product supply could persist if the Jiangyin port stockpiles continue to drop."