Price Rise in Acetone Drives the Rise in the Prices of Bisphenol A in Asia
- 02-Sep-2021 12:05 PM
- Journalist: Nina Jiang
The prices of Acetone have been rising consistently for a month now with the prices rising to around USD 895 per tonne in the last week of August from USD 780 per tonne in on August 1.
This has increased the prices for Bisphenol A as Acetone is a key raw material for the production of Bisphenol A. The price for Bisphenol A rose to around USD 4065 per tonne in the mid-August from around USD 4060 in the starting of August.
The price rise in Acetone is triggered by tighter supply which was partially caused by the force majeure by Taiwan Prosperity Chemical Corp (TPCC) which is a major producer of Phenol and Acetone in Asia. The TPCC plant at Kaohsiung has a production capacity of 221,000 tonnes per year of Acetone.
The price rise in Bisphenol A is caused by the rise in the Acetone prices. Other factors affecting the price rise include logistical constraints caused by the COVID related lockdowns, positive attitude of holders, and strong reluctance to sell amid expected price rises.
Acetone is a flammable, colourless, volatile liquid which has major application as an industrial solvent. The most widely used method for the production of Acetone is the Cumene process. In the process it is manufactured as a by product during Phenol manufacturing. Acetone has several derivatives including Bisphenol A, Methyl Methacrylate, and other solvents.
Bisphenol A is manufactured from Phenol and Acetone. The major applications of Bisphenol A are Epoxy and Polycarbonate resins which have further applications in paints and coatings, electrical and electronics, packaging, and other industries.
As per ChemAnalyst,” the price rise in Acetone is expected to continue following the upward trend as there have not been any major announcements of capacity additions in Asia. This might increase the prices for Bisphenol A further in the upcoming month.”