European acetone prices continued to decline in June 2025 amid weak demand, cautious buying, and muted economic activity. Despite INEOS’s Gladbeck plant closure signaling long-term supply tightening, poor downstream consumption and high logistics costs—especially from Asia—have prevented any price recovery, keeping market sentiment firmly bearish across the region.
The Acetone prices on the European market continued to witness bearish market fundamentals. The European acetone market still has headwinds from weak demand, muted economic activity, and weak buying interest, despite long-term supply tightening after INEOS announced the closure of its Gladbeck plant.
European acetone prices remained on a downward trend in the third week of June 2025, driven by lackluster downstream demand and nervous buying attitudes. The market shows no inclination to change and is still firmly bearish, notwithstanding major supply contraction reports.
INEOS just reaffirmed its intention to close permanently its phenol and acetone plant in Gladbeck, Germany—one of the globe's largest—having capacities for phenol at 650,000 t/y and acetone at 400,000 t/y. The British chemical giant attributed structurally high European energy costs, highly restrictive carbon taxation, and declining domestic consumption as the principal reasons. INEOS is targeting the relocation of its phenol business to Antwerp by 2027.
The shutdown represents a significant structural decrease in acetone availability across Europe. But this possible tightening has not yet manifested itself through firmer pricing, with available demand levels continuing to remain too poor to soak up available supply. Automotive, electronics, and coatings markets—largely the consumers of acetone—remain running below capacity, accounting for disappointing off-take.
Volumes are still thin, controlled by small, contract-based deals. Sellers are not willing to cut offers any further, but soft end-user demand is holding back any substantial price recovery. Buyers are mostly replenishing on a need-only basis, fearing oversupply and macroeconomic uncertainty.
At the same time, events in Asia are also shaping the market. South Korean exporters of acetone are contending with higher freight charges and policy uncertainty as China reconsiders its anti-dumping duties. Despite steady South Korean production, seasonal slowdowns and high logistics costs have constrained competitiveness and restricted export potential to Europe.
The European acetone market continues to be subdued with increasing energy prices, prudent purchasing, and poor downstream demand. Though stable imports and streamlined logistics support supply, high manufacturing expenses and geopolitical tensions prevent potential recovery. Processors remain buying on a need-only basis with no definite signals of near-term momentum coming back into the market.
Worldwide, shipping disruptions have dissipated, particularly in the Strait of Hormuz. Although remaining risks in the Red Sea and lower container traffic still indicate uncertainty for the acetone trade lanes, even dipping freight rates following tariff agreement have kept cost structures high.
The European acetone market is experiencing long-term supply constraints on account of structural closures, although short-term sentiment is weak. Unless there is a pick-up in downstream consumption, acetone prices will continue to stay under pressure until mid-2025.
