For the Quarter Ending March 2025
North America
In Q1 2025, the Acetone market in North America displayed a largely stable to slightly bullish price trend, underpinned by a complex mix of supply chain challenges, modest demand recovery, and shifting trade dynamics.
Prices remained relatively steady early in the quarter due to subdued demand from downstream sectors like cosmetics, pharmaceuticals, and coatings, while sufficient inventories kept aggressive restocking at bay. However, as the quarter progressed, supply-side constraints began to influence market sentiment. Limited feedstock availability—especially cumene—and increased production costs pushed some major producers, such as AdvanSix, to announce price hikes.
The close correlation between acetone and phenol production also played a key role, as phenol output fluctuations impacted acetone availability. By late March, prices saw a sharper uptick, rising by 7.4% and more, driven by a cautious rise in demand and growing logistical pressures, including increased port fees and tariff implications on imports. Geopolitical uncertainties and rising energy prices added further upward pressure. While overall demand remained tempered, North American producers focused on enhancing domestic supply chains and boosting exports, setting the stage for potential continued price strength into Q2 2025.
APAC
During Q1 2025, the Acetone market in the Asia-Pacific region remained largely stable, supported by consistent feedstock prices, cautious buying behavior, and subdued demand from downstream industries. The market was influenced by the strong linkage between acetone and phenol production, with stable phenol output preventing any sharp fluctuations in acetone supply. Despite some port inventory fluctuations and minor spot shortages, producers maintained a conservative pricing strategy, avoiding increases amidst weak purchasing sentiment. Cumene, the primary feedstock, held stable prices through the quarter, reinforcing the broader trend of market stability. Demand from key sectors such as plastics, pharmaceuticals, and coatings remained soft, though replenishment activity picked up slightly in March, driven by tightened spot availability and low factory operating rates. Even with pressures from rising shipping costs and geopolitical uncertainty, acetone prices showed only minimal week-to-week movements. While benzene and crude oil price shifts briefly impacted market sentiment, they did not trigger significant price deviations. Overall, the APAC acetone market in Q1 2025 was marked by equilibrium between moderate supply and weak, though steady, demand, leading to limited pricing volatility.
Europe
During Q1 2025, the European acetone market experienced overall price stability, underpinned by steady supply levels and subdued demand from downstream sectors. Weak domestic consumption, particularly in Germany, combined with a decline in feedstock cumene and crude oil prices, limited upward pressure on acetone prices. While the solvent, adhesive, and pharmaceutical industries maintained moderate and consistent procurement, broader market activity remained sluggish. Trading volumes were restrained, with minimal negotiations and low restocking interest from terminal factories. Operating rates across Western Europe dipped due to rising energy costs and inflation, which constrained production and prevented any significant inventory build-up. Although spot shortages and logistical disruptions—such as port delays in Hamburg—emerged temporarily, supply chains remained well-regulated and balanced. Feedstock price movements, including those of benzene and crude, had a limited influence due to stable raw material availability. Despite a bearish outlook in MMA and fluctuating demand for chemical intermediates, consistent demand from the coatings, plastics, and pharmaceutical sectors helped support price stability. Overall, Q1 2025 in Europe was marked by steady acetone prices, with weak momentum for recovery amidst ongoing macroeconomic challenges.
For the Quarter Ending December 2024
North America
In Q4 2024, the U.S. acetone market experienced a bearish trend, with prices remaining relatively on the declining momentum despite fluctuations in demand and production costs. Prices were influenced by stable production costs and moderate demand from downstream industries, including cosmetics, pharmaceuticals, and Methyl Methacrylate (MMA) production.
However, some supply chain disruptions, such as minor plant shutdowns and concerns over potential labor strikes, created uncertainties in the market. Despite these challenges, overall demand for acetone remained steady, with consumption supported by key industries like MMA and Polymethyl Methacrylate (PMMA), which showed resilience amid broader economic pressures.
Although domestic production of acetone remained slightly restricted, reduced feedstock availability, including cumene and propylene, continued to impact supply. Geopolitical concerns, particularly regarding potential tariff hikes and strike actions, raised import and export costs, further complicating the market. Overall, acetone prices showed minimal fluctuation, reflecting stable demand and constrained supply dynamics.
APAC
In Q4 2024, the acetone market in South Korea showed decreasing price trend, largely due to reduced procurement from terminal factories and weak demand from key industries. The market experienced cooling conditions, with limited trading activity and traders adjusting their positions to reflect the subdued sentiment. Prices saw only slight fluctuations, driven by cautious buying behaviour and ongoing weak demand.
The demand from key sectors like MMA and other aromatics continued to decline, contributing to a steady but restrained market outlook. Production remained moderate, with acetone output sufficient to meet both domestic and international demand. However, the drop in raw material prices, particularly cumene, put downward pressure on acetone prices, further limiting any upward movement.
Market participants were hesitant to make aggressive purchasing decisions, leading to a more passive trading environment. Despite the cautious outlook, supply remained stable, and some support was observed from key downstream manufacturers. The market was expected to stabilize in the short term, pending any major supply disruptions.
Europe
In Q4 2024, the European acetone market experienced a period of price pressure, driven by a combination of oversupply and reduced demand. The oversupply of phenol led key producers to cut production, resulting in a supply-demand imbalance that tightened acetone availability. As acetone was a by-product of phenol, the reduction in phenol production inadvertently restricted acetone supply, leading to upward price pressure.
Despite planned maintenance at major producers like Ineos and Cepsa, acetone availability remained sufficient, but sluggish demand from key sectors such as solvents and adhesives continued to suppress price increases. The decline in crude oil prices and weakened feedstock markets, particularly for phenol and styrene, added downward pressure on acetone prices. This, combined with cautious buyer sentiment, resulted in moderate trading activity.
European MMA prices fluctuated, reflecting broader economic concerns, while the holiday season further dampened demand expectations, contributing to a bearish outlook. The overall market remained subdued, with minimal signs of recovery in either demand or pricing.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American region saw a significant decline in Acetone prices, with the USA experiencing the most pronounced price fluctuations. Several factors contributed to this downward trend, primarily the reduced demand from downstream industries such as cosmetics and pharmaceuticals, which traditionally drive Acetone consumption.
Despite stable production costs, the market faced several challenges, including supply chain disruptions caused by adverse weather events like hurricanes and unexpected plant shutdowns. Notably, Shell Chemicals experienced a temporary plant shutdown due to force majeure, which adversely affected its overall operational capacity.
This situation contributed to an overall negative sentiment in the market, reflected in the correlation between declining crude oil prices and the downward trend of Acetone prices. During the quarter, prices dropped by 26% compared to the same period last year, illustrating the ongoing pricing pressure. Additionally, a 1% decline was recorded compared to the previous quarter, while a noteworthy 3% difference was observed between the first and second halves of the quarter, underscoring market volatility.
APAC
In the third quarter of 2024, the Acetone market in the APAC region faced a significant decline in prices, driven by various critical factors. A primary influence on this downturn was the continuous stagnation in propylene prices, a key feedstock essential for acetone production. This situation resulted in widespread price reductions across the market. During this quarter, stable demand from downstream solvent industries was observed, but sluggish overall market activity further contributed to the downward price trend. In mid-quarter, Mitsui Chemicals experienced a temporary plant shutdown due to maintenance work, which negatively impacted its operational capacity. Japan was particularly affected, experiencing the most significant price changes that mirrored the prevailing negative sentiment across the region. The quarter registered a substantial decrease in prices compared to the same period last year, reflecting an -11% decline. Moreover, a quarter-on-quarter analysis indicated a -6% decrease, further underscoring the consistent downward trend in the market and highlighting the ongoing challenges faced by the acetone industry in the APAC region.
Europe
In Q3 2024, the European Acetone market experienced a notable rise in prices, with the Netherlands reflecting the most significant changes in this trend. Several key factors contributed to this price increase, including limited supply from manufacturers, which tightened market conditions, coupled with adequate feedstock availability. Additionally, a balanced supply of propylene, a crucial feedstock for acetone production, helped stabilize the market dynamics. However, towards the end of the quarter, operational capacity faced disruptions as CEPSA Group and Seqens Group experienced temporary plant shutdowns due to maintenance work. Compounding these issues, workers at the Port of Hamburg halted operations, followed closely by similar actions in Bremen-Bremerhaven. This labor action was initiated by the trade union, which aimed to pressure employers into making additional concessions during ongoing wage negotiations with the Central Association of German Seaport Operators (ZDS). Furthermore, a significant backlog of container ships had formed off the coast of California, contributing to logistical challenges. Collectively, these factors influenced the price incline throughout the third quarter, underscoring the complexities in the European Acetone market.
For the Quarter Ending June 2024
North America
In Q2 2024, the Acetone market in North America experienced an overall mixed trend in prices, driven by several key factors. The overall market dynamics were influenced by a robust rise in demand from essential downstream industries. Prices inclined in the first half of the quarter and this rise in demand was compounded by supply constraints, primarily due to logistical challenges and decreased operational rates at phenol plants, which are crucial for Acetone production. On the other hand, the prices showcased negative fluctuations in the second half of the quarter amidst the high inventory’s availability. Additionally, fluctuations in crude oil prices, a significant determinant for naphtha and subsequently Acetone prices, contributed to impacting the final prices of Acetone.
With a 10% decline from the previous quarter, the year-on-year comparison shows a striking 49% increase, underscoring the robust demand recovery and supply constraints faced during this period. Seasonality played a role, with the construction sector's typical off-season slowdown being less impactful due to sustained industrial activity. Prices in the first half of the quarter remained relatively steady, with only a slight 1% increase observed in the second half, indicating a stable yet positive pricing environment.
The quarter concluded with Acetone prices at USD 1318/MT, DEL Texas. This marked stability and modest growth, reflecting a positive pricing trend. The confluence of increased demand, constrained supply, and fluctuating crude oil prices suggests that the Acetone market in the USA during Q2 2024 remained resilient and showcased mixed market dynamics, despite the seasonal and logistical challenges.
APAC
The second quarter of 2024 has been characterized by a significant upward trajectory in Acetone prices across the APAC region, influenced by a confluence of factors. Market dynamics have been primarily driven by a consistent increase in demand from end-use sectors such as pharmaceuticals, and personal care products. The fluctuations in crude oil and naphtha prices have also contributed to rising production costs, which, in turn, have elevated Acetone prices. Additionally, the strategic production cuts by OPEC+ and constrained supply chains due to geopolitical tensions and logistical challenges have exerted upward pressure on prices.
Focusing on Japan, the country has experienced the most pronounced price changes in the region. The overall trend has shown a clear escalation, influenced by seasonal demand variations and supply chain constraints. Compared to the same quarter last year, Acetone prices in Japan have surged by a substantial 29%, indicating a robust year-over-year growth influenced by both increased demand and higher feedstock costs. From the previous quarter in 2024, prices have risen by 11%, reflecting a steady climb driven by ongoing market tightness and rising operational costs. Within the quarter itself, a 2% price increase from the first to the second half further underscores the persistent demand and constrained supply environment.
By the end of the second quarter, the price of Acetone in Japan reached USD 909/MT FOB-Osaka. This consistent price increase highlights a predominantly positive pricing environment, with strong demand fundamentals and supply chain challenges propelling the market upward. The quarterly performance underscores a buoyant market sentiment, driven by both internal demand factors and external cost pressures.
Europe
In Q2 2024, the European Acetone market faced a significant downturn, driven by multiple converging factors that exerted downward pressure on prices. The quarter was marked by an oversupply of Acetone, coupled with an ample availability of its key feedstock, propylene. This surplus was exacerbated by stable production rates and the restart of a major derivative unit, which alleviated any previous supply constraints. Additionally, limited demand from downstream sectors such as personal care, adhesives, and solvents further contributed to the bearish sentiment.
Compounding these effects, geopolitical tensions, particularly in the Red Sea, led to logistical disruptions, forcing vessels to adopt longer, more costly routes. This increase in shipping costs and delays added strain to an already oversupplied market, driving prices even lower. Germany experienced the most pronounced price fluctuations in the region. The overall trend for the quarter indicated a persistent decline in Acetone prices, reflective of seasonal demand variations and a broader market downturn.
Compared to the same quarter last year, prices plummeted by 21%, underscoring a stark negative shift. From the previous quarter in 2024, prices decreased by 5%, indicating a continuation of the downward trajectory. Within the quarter itself, the first and second halves saw a price decrease of 4%, further cementing the declining trend. The quarter ended with Acetone prices at USD 1250 per metric ton, FD Karlsruhe.
