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US Acetone prices enters the steady phase in first half of January 2024
US Acetone prices enters the steady phase in first half of January 2024

US Acetone prices enters the steady phase in first half of January 2024

  • 16-Jan-2024 4:43 PM
  • Journalist: Gabreilla Figueroa

Texas- Acetone prices in the US market continued to move steadily in the domestic market as the demand is not overwhelming from Bisphenol A, Methyl Methacrylate, cosmetics, pharmaceutical, and other solvent-consuming industries. In the week ending January 12th, the Acetone market prices were observed at USD 1680 per MT, FOB Texas, showcasing a lesser number of inquiries about Acetone in the US market.

The start of 2024 brings restrained positive developments for the worldwide Acetone sectors, as demand appears to be on the edge and there are new capacity expansions in the US and overseas markets. However, there are some bright spots, such as the US Acetone market, which started receiving shipments from Asia in the last quarter and seems steady to robust in the first week of January. Additionally, there is a cautiously optimistic outlook for the Asian MMA market due to new capacity increases in the Asian market, consequently slowing Acetone demand.

Anticipated reports suggest that Acetone prices are likely to stabilize in the first half of 2024, supported by sustained, albeit not exceptionally robust, demand. In the US, operational rates are expected to remain steady or experience a slight uptick to meet demand, with no scheduled maintenance anticipated in the first half of the year.

In the phenol market, participants foresee a continuation of weak demand throughout 2024, coupled with expectations of ongoing low production levels. US sources express pessimism regarding the impact of additional phenol capacities in China on the already subdued demand in the US. This scepticism stems from uncertainties surrounding whether the imported phenol would meet the required end-use specifications. Acetone continues to generate demand both within and beyond Asia, while phenol is experiencing significantly restricted demand, causing challenges for most producers in finding outlets for their product.

The week commenced with a bearish tone following Saudi Arabia's announcement of a cut in the February official selling price (OSP) for Arab Light crude to Asia. Considering the existing market conditions, the Acetone outlook remains cautiously neutral, leaning towards bearishness due to increased inventories and global demand concerns. However, traders should stay attentive to any potential supply disruptions in the Middle East, as such events could swiftly shift the market sentiment to a bullish stance. As per ChemAnalyst, Acetone prices in the US market are expected to move slowly and steadily in Q1 of 2024 amidst the better productivity rate and moderate demand outlook.

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