Firm Cost Pressure and Stressed Supplies Result in Rising Acetone Prices
- 21-Apr-2023 3:16 PM
- Journalist: Acetone
In Europe, Acetone prices remained firm amid shifting costs pressure. Meanwhile, Acetone production rates remained affected due to weak demand for Phenol amid volatile upstream Crude oil prices. Consequently, in the first week of April, the feedstock Propylene prices showed mixed sentiment and decreased amid shifting demand-supply dynamics. Furthermore, the feedstock Benzene prices rose at the beginning of the week.
As per the ChemAnlayst data, Acetone prices in the European region increased by almost 3% in the first week of April. While during March 2023, Acetone prices witnessed a near spike of 19% in Europe, 9-10% in Asia, and 6% in the North American region.
The Global demand for Acetone was sluggish from the Acrylates industries amid production cuts in downstream Methyl Methacrylate and depressed orders from end-users. Similarly, the inquiries were underwhelming from downstream Isopropyl Alcohol and Bisphenol A producers. In the USA, purchasing activities were low due to high-interest rates by US Federal Reserve, and buyers were conscious while making purchases.
In Asia, Acetone prices are firm and rose during the first week of April due to the limited availability of supplies due to stressed production rates. Various Phenol and Acetone plants were under shutdowns because of the stressed availability of feedstock Benzene supplies amid decreased trading activities. In South Korea, Yeochun Naphtha Cracking Centre, with a feedstock Benzene production capacity of 12000 MTPA, went for maintenance turnaround in March, which affected feedstock availability. In Thailand - PTT Phenol, with a Phenol production capacity of 20834 TPM, went for maintenance shutdown on 1st April for 15 days. Similarly, Mitsui Phenol Singapore, with a Phenol production capacity of 25883 TPM, went for maintenance shutdown on 1st April for 15 days.
As per the ChemAnalyst estimation, “Acetone prices are likely to remain volatile in the upcoming month amid shifting demand-supply dynamics from downstream industries. However, the available inventory levels are limited due to moderately low operational rates and increasing upstream costs. So, the price trend is likely to remain upward in April 2023.”