Acetone Rebounded Quickly after a Deep Fall

Recently, the acetone market has been unpredictable, with domestic acetone entering a downward swing after a big rise in February.

As of Feb. 27, the mainstream negotiation price in East China acetone market was at 5750 CNY/ton. Starting from the first trading day of the March source pricing cycle, the acetone market fell into a frenzied mode, dropping to RMB5,450/tonne in just two trading days, a drop of 5.22%.

Acetone rebounded quickly after a deep fall

After two days of deep decline, March 2, East China acetone gorgeous turnaround, a rapid rebound.

(A) raw materials.

Crude oil: Due to the favorable geopolitical situation, international crude oil prices continue to climb, February 24 plate Brent futures break through $100 for a long time and continue to break the $105 barrier.

February 28, Brent futures settlement price of $100.99 / barrel, the dusty 100 yuan mark was broken again, and set a record for the shortest time from 90 to 100 (1 month, the previous record was 2 months).

On March 1, international oil prices rose sharply as the situation in Ukraine remained tense and many countries in Europe and the United States increased sanctions against Russia, heightening market concerns about the risk of supply disruptions. The futures for the month 05 contract reached $104.97/barrel.

Pure benzene: the current pure benzene by crude oil lifting, prices continue to move higher, but high prices downward conduction resistance, the main downstream profitability is not enough, chase high intention is limited, part of the device parking, production cut.

March part of the domestic pre-parking px device restart, and port import shipments than February increment, port inventory is expected to return to the pace of tired storage.

Thus, in the demand contraction, supply increase under the influence of the first half of March price upside space is not much.

And the second half of the month one after another large refinery into the planned maintenance period, outgoing pure benzene reduction, the price is not lack of rebound momentum. However, the current international situation, crude oil is firm and highly volatile. If crude oil still has a sudden rise, there is no lack of short-term pure benzene with the possibility of rising.

Propylene: From the supply side, propylene plants in the region are restored one after another, and the supply is expected to increase. However, individual refineries and large PDH units are expected to stop, boosting market sentiment and supporting prices favorably.

From the demand side, the main downstream polypropylene market may not have a more obvious improvement, such plants have limited support for raw material demand.

But the acrylonitrile plant may be expected to fluctuate, coupled with other downstream propylene oxide, butyl alcohol, acrylic acid and other products to maintain good profit margins, the demand for raw materials still exist to buy support. Combined with the current situation of supply and demand, and driven by the situation of crude oil breaking upward, the overall propylene market in March to maintain a high upward trend.

Phenol ketone double raw materials by the high level of crude oil, have pushed up the cost side of acetone to form a pull, related products phenol market is slightly weaker, phenol ketone plant profitability level is currently squeezed.