Acetone Market Update: Prices Rise on Feedstock Costs and Seasonal Demand
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Bulk transactions in the Mumbai market are reportedly taking place in the range of ₹63–64/kg, with a 90-day credit period, according to a leading pharma industry buyer. Compared to last week, Acetone prices have risen by approx. ₹1/kg, primarily driven by improved market sentiment and an uptick in feedstock costs.
Chemicals Price
- Indian importers have increased Acetone prices by ₹1/kg, bringing them to:₹66.00/kg (ex-Kandla)
₹65.50/kg (ex-Mumbai)
These rates are based on a 60-day credit period. - Authorized dealers of Deepak Phenolics are offering:
₹64++/kg on advance payment terms.
₹66.00/kg (ex-Dahej) on 60-day credit terms. - Bulk transactions in the Mumbai market are reportedly taking place in the range of ₹63–64/kg, with a 90-day credit period, according to a leading pharmaceutical industry buyer.
- Compared to last week, Acetone prices have risen by approximately ₹1/kg, primarily driven by improved market sentiment and an uptick in feedstock costs.
Chemicals Demand and Supply
- In November, Acetone prices showed mixed trends due to an influx of imports following the arrival of multiple shipments in India.
- Demand from the pharmaceutical sector remained sluggish in November. However, December has seen some recovery in demand for key active pharmaceutical ingredients (APIs) such as Paracetamol, Ibuprofen, Amoxicillin, and Carbamazepine.
- Meanwhile, seasonal demand from the paints and coatings sector has begun to pick up. This is likely to boost the consumption of Acetone, particularly for Diacetone Alcohol production.
- Additionally, the narrowing price gap between Ethyl Acetate and Acetone may encourage paint manufacturers to switch to Acetone as a cost-effective raw material for oil-based paints, which could further drive demand in the near future.
- India’s monthly Acetone demand is estimated at 23–25 KT. Of this, HOCL and Deepak Phenolics together account for approximately 12 KT per month, while the remaining 11–12 KT is fulfilled through imports.
Market News
- Crude Oil: WTI benchmark fell slightly by 0.55%, settling at $70.90/barrel.
- Naphtha: FOB Singapore prices rose by $5 to $610/MT.
- Benzene: FOB Korea prices increased by $10 to $900/MT.
- Propylene: FOB Korea prices remained stable at $800/MT.
- Lotte Chemical Titan shut No.1 cracker at Pasir Gudang due to negative margins, it is reported negative margins over the last two years due to a prolonged downturn in petchem industry.
- Dow to produce Voranol WK5750 at Freeport polyol plant VORANOL WK5750 aims to transform the comfort experience in products such as mattresses, furniture, and automotive seating.
Expert Opinion
- Acetone prices are expected to remain volatile in the short term due to improved market sentiment. The gradual recovery in demand from the pharmaceutical, paints, and coatings sectors is likely to support prices, potentially stabilizing the market and preventing further declines.
- Buyers are advised to consider building inventories at current lower price levels to take advantage of a possible price recovery in the coming months.
Daily Market Report
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