In July, China's acetone market first declined then rose; there may be an exploration of price increases in August

July 31 News

In July, the overall focus of the Chinese acetone market moved downward, with a slight increase at the end of the month. The acetone market in East China reported an offer price of 5,000 CNY/ton on July 1st, which decreased to 4,850 CNY/ton by July 30th, a price decrease of 3%. Across the national acetone market, there were similar fluctuations.

East China region market acetone price trend chart

Early in the month, raw material products showed mixed trends, with the driving force from cost aspects weakening. Phenol and acetone factories continued to operate at a loss, facing significant pressure to move inventory. At the beginning of the month, the acetone market fell sharply, with prices in the East China region dropping to as low as 4,600 CNY per ton. Petrochemical companies followed the market fluctuations and generally lowered their listed prices.

Mid-month, as the Yangzhou Shiyoun facility resumed normal operations, the phenol and acetone plants' operating rate exceeded 80%, leading to a sufficient market supply. This increased pressure on traders, but the market had already approached a low point, limiting the downward space. As downstream buyers started inquiring about orders at lower prices, factories followed with necessary purchases, leading to an increase in market transaction volumes. Towards the end of the month, Hengli Petrochemical's phenol and acetone plant was shut down for maintenance, causing the industry's operating rate to drop by 5%. Despite the continued ample supply, with limited replenishment at the ports, inventories fell to 20,000 tons. Traders intended to boost the market, and quotations tentatively rose, increasing by 20-30 CNY/ton daily during the last week of the month.

July 31 acetone quotations in major markets across China are as follows: