Acetone Market Inched Down This Week (Dec 15-21, 2017)

Market Review:

The acetone market prices in East China declined first and then moved up. The buying interest was thin, which weighed down the acetone prices. The supply remained flat. No inventory pressure at ports and producers. Holders were unwilling to sell goods at low prices. At the end of this week, the acetone prices started to rebound. The downstream demand was stable and thin.

Up to December 21, the closing prices for acetone in Jiangsu were in the range of RMB 6,750-6,800/mt, down RMB 50/mt from last week. The average price was RMB 6,765/mt, down RMB 15/mt from last week.

Forecast:

Supply and Demand: Chinese phenolic ketone units will run normally. Producers have no inventory pressure and a few producers’ inventory is tight. The overall inventory won’t be high. It is predicted that the import in January will be largely stable. The downstream demand will be stable. Units of MMA, BPA, and isopropanol will run stably. The MIBK unit at Ningbo Oceanking Chemical Development has maintenance plan and it may last for 2-3 weeks.

Other Influencing Factors: The international crude oil prices will continue to be high. Propylene and benzene markets will move marginally. Profits of phenolic ketone units are fine, and the supply and demand of phenol is fairish. Prices of phenol may inch up.

On the whole, the supply of acetone will support the market when the demand will remain stable. It is predicted that the Chinese acetone market will move marginally next week.