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US Acetone Prices Go Through the Roof, North of 30% Change in a Month
US Acetone Prices Go Through the Roof, North of 30% Change in a Month

US Acetone Prices Go Through the Roof, North of 30% Change in a Month

  • 12-Dec-2023 6:06 PM
  • Journalist: Emilia Jackson

Houston (USA): In the dramatic turn of events, US Acetone prices have gone haywire in the early December assessment. Acetone Prices have gained a whopping USD 550-650/MT in the last couple of weeks on the back of constrained supply dynamics. As per several market participants, the spot market has limited to no availability, and it will be arduous, if not impossible, to secure material for the new buyers.

As per the latest assessment, US Acetone Prices have increased to USD 1600-1700 per MT on a FOB basis in the spot market, while the four weeks earlier assessments placed the US Acetone prices in the range of USD 1050-1170/MT. This giant leap in the price of Acetone can be attributed to limited stock availability in the market.

In the interim, it has been observed that procurements have been significantly constrained, as per reports from market participants. Notwithstanding the restrictions, the procurements that are occurring are marked by a premium in the domestic market. The dynamics of the Acetone market have been further complicated by the confluence of factors, wherein procurers have encountered limitations in their procurement activities due to weakened demand from downstream, resulting in subdued market activity. At the same time, prospective buyers are grappling with the challenge of securing substantial material and encountering substantial price hurdles in the process. The situation is compounded by the limited availability of volumes in the domestic spot market.

There is an off-season lull in the construction industry, a conventional happening, and hence, the consumption rates have been highly muted. This has prompted the procurers to keep the inventory levels stationary.

This constrained supply situation is likely to linger till the year's end as the festive holidays will further soften the production rates while keeping the volumes limited in the market. However, market experts expect an improvement in Acetone's supply dynamics in Q1 2024, which is likely to stabilize the prices in the first half of the quarter.

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