Acetone Prices Increased in the Asian Market Powered by High Demand from the Downstream Industries during December 2023

Acetone prices escalated during the month of December in Asia. The rise was majorly noticed in the Chinese chemical market, that was driven by the high demand for acetone amid low supply issues. Analysts of Procurement Resource suggest a m-o-m hike of approximately 2.17% in China.

The high demand observed for acetone in the downstream industries, coupled with the low inventories strengthened the escalation in the prices for acetone in China. However, a slight decline in the spot prices during the period in India, caused a minor instability in the Asian chemical market causing slight decline in Acetone price trend.

Increase in Feedstock Demand Strengthened the Market Sentiments

Increase in the demand for the feedstocks used in the production of acetone, ultimately pushed the prices of acetone during the end of Q4 2023. Prices of Benzene and propylene, feedstocks used in the production of acetone experienced an inclination, owing to the rise in the demand in the Chinese market.

Request Access To The Latest Price Trends of Acetone

Prices of propylene, a prominent feedstock for acetone, kept oscillating, and ended with a positive momentum during the period in the Asian market. Issues faced for transporting propylene amid the harsh climatic conditions, coupled with shutting down of certain production units in Shandong, led towards a tight market supply. The reduction in the supply chain prompted the hike in the spot prices maintaining an uptick in the acetone prices.

Additionally, the increasing costs of crude oil, which is used for benzene production, indirectly influenced the overall prices of acetone, as well. The hike in demand remained usual in the major regions of Asia, especially covering China and India.

India’s Haldia Petrochemicals Invests on new Acetone Plant Amid the Rise in Demand Curve

Haldia Petrochemicals, one of the leading petrochemical producers based in India, decides on investing around 30 billion INR, on setting up a new phenol/acetone plant in West Bengal, India. The company expects a production of 185,000 tonnes/year of acetone by the first quarter of the year 2026. The company has taken the initiative to meet the rising market demands for acetone observed from the downstream industries.

Read More About Acetone Production Cost Reports - Get Free Sample Copy in PDF

According to Procurement Resource, the prices of acetone went up marking an m-o-m uptrend of approximately 2.17% in the Chinese market. The increase in the spot prices were observed due to the low supply, coupled with high demand from the downstream industries that boosted the costs maintaining a positive acetone price trend in Asia throughout the month of December 2023.