Typhoon Hinnamor Impacts Supply Chains in the APAC Region; Acetone Prices Affected
- 09-Sep-2022 2:55 PM
- Journalist: Patrick Knight
Disrupting trade activities and hampered supply chains affect the prices of Acetone in China. The rising threat of Typhoon Hinnamor is disrupting port activities in Shanghai, Busan, and Ningbo ports. Moreover, the low demand from the downstream sectors negatively impacts Acetone prices.
The Asian countries have witnessed a back-to-back hindrance in trade activities since the beginning of the Russia and Ukraine war. Later the COVID resurgence in China, followed by the heat waves and river drying up, hampered the supply of products from China. At present, the rising threat of Typhoon Hinnamor is further affecting the supply chains. The port Busan in South Korea, the port Shanghai, and Ningbo in China have been forced to shut, pausing trade for a few days.
Moreover, the current pause in shipping and air transportation resulted in the pilling up of the product. The weak purchasing from the domestic market led to the dropping in Acetone prices. The new COVID cases and lockdown in China's Chengdu slowed domestic trading activities. Also, the demand was poor from the consumers, which prompted the traders to sell the product at a discounted price. As a result, the CFR Qingdao prices of Acetone showcased a weak trend since the first week of September and continued to fall by 1.7% on the 9th of September.
In South Korea, the rising trade deficit caused by the high import activities added downside pressure on Won. Hence, the export slowed from South Korea as the requirement from the regional markets was weak. However, the downstream derivatives Bisphenol A and Methyl Methacrylate prices were weak due to the declined purchasing from end-use automotive and construction sectors.
According to ChemAnalyst, Acetone prices will likely remain weak in the Asian region as the requirement might continue to be weak. If the manufacturers utilize the existing products, the requirement for Acetone may continue to drop, further impacting Acetone's prices. Also, if the port activities resume after the typhoon, the supply might be slow due to clearing backlogs.