What Factors Drove US Acetone Prices 8% Higher in August?

Feedstock costs were a key driver. Benzene and cumene prices increased month-on-month, raising production costs for cumene-derived Acetone. However, in the final week of August, feedstock prices edged lower as upstream supply conditions eased. Despite that dip, Acetone prices remained stable, supported by persistent cost pressure from the energy side and the earlier accumulation of feedstock costs through the month.

Electricity costs in the US rose sharply from $**/MWh to $**.*/MWh during August, driven by two factors: the war impact disrupting oil flows through the Strait of Hormuz and surge in electricity demand from data centres. The higher energy costs increased production expenses for Acetone manufacturers, encouraging them to maintain firmer offers. This cost-push was a primary reason for the Acetone uptrend and contributed to the ** increase from USD *,***/tonne to USD *,***/tonne during August.

Demand patterns were mixed. Mid-month buying by...