Acetone Market Moved Marginally This Week (Jan 5-11, 2018)

Market Review:

The Chinese acetone market moved marginally this week. Crude oil prices were high, and the prices of raw materials were firm. The inventory at ports was low. Producers had no inventory pressure. The production cost of imported goods was high, and traders’operation was inactive. Holders held firm offers. The downstream buying interest was flat. Up to January 11, the closing prices for acetone in Jiangsu were RMB 6,850/mt, down RMB 25/mt. The average price was RMB 6,865/mt, up RMB 53/mt.

Supply and Demand

The inventory at ports was low.The unit at Lihuayi Group was shut from January 10-14. The unit at SINOPEC SABIC Tianjin Petrochemical may be shut for 7-10 days. Other units are running normally. Most acetone producers’ inventories will be modest or low.The downstream demand is normal. MMA, BPA, isopropanol and MIBK units are running stably.

Other Influencing Factors:

The crude oil will continue to be high. But the increasing inventory in the U.S. will pressure the crude oil prices.Propylene and benzene prices will be high, which will support the acetone slightly.Phenolic ketone units’ profits are high, and the phenol market will continue to move marginally.The buying interest is flat. Some lower prices may appear.The ex-works prices have reached RMB 6,800/mt, and USD offers are high.

On the whole, the Chinese acetone market will be largely stable next week.