European Energy Crisis Boosts the Acetone Market
- 30-Jun-2022 3:22 PM
- Journalist: Timothy Greene
Acetone prices have been increasing this week owing to the European region's rising energy crisis. The rising inflation and the skyrocketing raw material prices are the other reasons for the surging Acetone values.
The ongoing war between Russia and Ukraine has escalated the supply scarcity of crude oil and natural gas, leading to the energy crisis across the region. Furthermore, the supply from Russia continued to shorten this week as Russia cut its gas pipelines to Europe. Hence, the limited availability of the upstream crude oil across the region inflicted the feedstock Benzene and Cumene pricing, further influencing the Acetone market. Moreover, the Acetone manufacturers were struggling to increase production due to the low availability of raw materials, with the increasing demand from the domestic and the regional markets. Thus, the above reasons have been pushing the Acetone price to move upward.
Whereas in Germany, the inflation stroked by the COVID pandemic followed by the tension between Russia and Ukraine war and witnessed a constant hike for 18 months. As a result, of the inflation, consumer prices have been exacerbated, ushering the Acetone price to ascend. Also, the increasing fuel prices and the rising export charges have been boosting the Acetone market.
In addition, the road freight charges have risen steeply, prompting the stockholders to revise their quotations to protect their profit margins. Besides, the limited inventories coupled with the healthy buying activities from the end-use pharmaceutical and construction sectors to produce paints, inks, adhesives, and resins also resulted in the increasing price trend of Acetone.
As anticipated by the ChemAnalyst team, the European market is about to witness continuous growth in the upcoming weeks. The inflation in the German market might ease, but the demand from the consumer end may remain high. Also, the rising energy crisis may not ease the raw material values. Furthermore, the expected tight supply of the product in the domestic market due to low production activities could trigger the Acetone prices.