In May, China's acetone market shows weak supply and demand, leading to a downward trend

May 29th, News

In May 2026, the spot market for acetone in East China saw a continuous decline throughout the month, with no significant rebound. As the core distribution market in China, the trend in East China dominated the national acetone prices. Prices showed a stepwise decline: at the beginning of the month, the mainstream quotation was 7,715 CNY/ton, and by the end of the month, it had fallen to 7,077 CNY/ton, resulting in a cumulative decrease of over 8% for the entire month.

Chinese phenol and acetone manufacturers have simultaneously lowered their factory prices. Major producers in Shandong have reduced their quotes multiple times within the month, with each decrease ranging from 50 to 100 CNY per ton, further dampening the sentiment in the spot market and leading to an overall weak performance.

Supply side: High facility operation rates have led to an overall abundance of supply. In May, the facility utilization rate for phenol and acetone co-production in China remained high at 84%, with major facilities in East China operating at nearly full capacity. Imports from Southeast Asia arrived as scheduled, compensating for the reduced supply from the Middle East, ensuring ample spot market availability. Even though port inventory in East China is at a low level compared to the same period, there is no restocking demand from downstream, and thus, low inventory levels are not providing price support.

On the demand side: Demand is weak during the off-season, and downstream sectors are experiencing significant drag. Weak demand is the primary driver behind the downward trend in market conditions. During the traditional chemical industry’s off-season: Bisphenol A is being weighed down by sluggish demand from downstream epoxy resins, prompting factories to operate at low capacity; end-use demand for phenolic resins—particularly in construction materials and adhesives—is tepid; and procurement volumes of isopropyl alcohol and pharmaceutical intermediates remain low. Downstream sectors across the entire industrial chain are adopting a strategy of rigid demand procurement with low inventory levels, avoiding centralized stockpiling. As a result, trading activity in the market has dried up, and the phenomenon of prices being quoted but no actual transactions taking place is particularly pronounced.

Cost and market sentiment: There is insufficient support, and the bearish sentiment is strong. Despite the rise in international crude oil prices, the price of upstream pure benzene continues to weaken, and the cost support for acetone raw materials has loosened. The positive impact of crude oil cannot be transmitted to the end of the industrial chain. At the same time, due to the bearish sentiment in the market, traders are actively reducing prices to avoid risks, and downstream players are continuously observing, forming a negative cycle of price reductions, which further depresses market prices.

Looking at the situation, there is little chance for a significant recovery in the acetone market in East China in June, and the overall trend will continue to be weak and fluctuating: with short-term tightening of supply, prices may briefly stabilize; in late June, maintenance facilities will restart, and the market supply will return to being ample; at the same time, due to the off-season for downstream demand and the potential for further declines in benzene prices, the room for a rebound is limited.