Acetone Market Fluctuated at Highs This Week (Dec 8-14, 2017)

Market Review:

The acetone prices in East China inched up and prices in South China fluctuated at high levels. The inventory at port moved marginally and inched down from previous days. Acetone producers had no sales pressure and some of them raised offers. The demand for acetone was flat, and the overall trading was fairish. The import volume and overall inventory was modest.

Up to December 14, the closing prices for acetone in Jiangsu were in the range of RMB 6,800-6,850/mt, up RMB 150/mt. The average price was RMB 6,780/mt this week, increasing RMB 270/mt week on week.

Forecast:

Supply and Demand: The unit in the eastern of Sinopec Beijing Yanshan may continue to operate. In North China, the inventory won’t be too high. According to the market information, other acetone producers have no sales pressure. Moreover, the inventory at ports will be stable and not be high. In December, the import volume may move up. As for the demand, it will be stable. MMA units will run normally. The overall operating rate in the BPA industry will be over 80%. The isopropanol unit at Detian Chemical is shut, and others will run normally.

Other Influencing Factors: Crude oil prices are at highs. Propylene and benzene markets are firm. The profits of phenolic ketone are high, and the phenol market is fine. Acetone producers are unwilling to sell goods at low prices. However, downstream users have felt production cost pressure. The wait-and-see sentiments become strong.

On the whole, the acetone market will be firm and high in the short term. If the supply remains stable without pressure, the acetone market may move up further.