Acetone Prices Drop ₹3/kg on Weak Downstream Demand; Pharma Recovery Expected to Stabilise Market

Key Highlights

• Price Decline: Acetone prices fell ₹2–3/kg this week, with offers ranging between ₹59–60/kg across major ports.
• Demand Dip: Weak offtake from coatings, Diacetone Alcohol (DAA), and Isopropanol (IPA) segments continues to pressure prices.
• Pharma Demand: API production in Dec–Jan expected to lend limited short-term price support.
• Supply Status: Domestic production steady; imports contribute to market surplus.
• Feedstock Trend: Benzene and propylene remain soft across Asia, influencing bearish sentiment.
• Price Movement: ₹3/kg Drop Across Major Ports

Acetone Market Prices

Acetone prices declined by ₹3/kg this week amid continued weakness in downstream consumption. Importers quoted new offers at ₹59.00++/kg ex-Dahej and ₹59.00++/kg ex-Kandla.

Domestic producer Deepak Phenolics offered material at ₹59+/kg ex-Dahej on advance payment terms, while trader offers remained mixed but generally lower at ₹60–61+/kg ex-Kandla on 60-day credit.

The correction has largely been driven by subdued end-use demand. Both Deepak Phenolics and Hindustan Organic Chemicals Ltd (HOCL) are operating at healthy utilisation rates, while consistent import inflows have further increased domestic availability.

Additionally, bearish trends in feedstocks such as benzene and propylene have dampened market sentiment across Asian acetone markets.

Feedstock Market Trends: Benzene and Propylene Soft

1. FOB Korea Benzene Futures:
22 Oct 2025: $747/MT
31 Oct 2025: $723/MT
10 Nov 2025: $724/MT
19 Nov 2025: $725/MT

2. Feedstock Price Snapshot:
FOB Korea Benzene: $663/ton
FOB Korea Propylene: $695/ton
CFR China Acetone: $584/ton

Benzene prices have declined steadily through November, tracking weaker crude and downstream demand. 

The market is expected to remain stable with minor fluctuations, as investors monitor cost and demand-side developments.

Supply & Demand: Production Stable, Imports Add to Surplus

• Domestic acetone production remained stable through November, with producers maintaining steady output rates. Imports continued to arrive regularly, creating a surplus situation by mid-month.
• Demand from paints and coatings—a key downstream segment—fell in October due to the festive lull. Similarly, offtake from Diacetone Alcohol (DAA) and Isopropanol (IPA) producers weakened due to slower order flow.
• However, sentiment may improve in the coming weeks. According to market participants, pharmaceutical demand is likely to rebound in December and January, as API manufacturers ramp up production schedules for the winter demand cycle.
• India’s total acetone consumption stands at 23–25 kt per month, with domestic production around 12 kt/month shared between Deepak Phenolics and HOCL, while imports typically meet the remaining 10–12 kt of demand.

Market News: Crude and Energy Trends

• In international energy markets, crude oil prices fell by 2.35% to $59.33/bbl, while natural gas prices climbed by 4.02% to $4.54/MMBtu.
• Geopolitical instability has prompted Chinese state oil majors to temporarily suspend seaborne Russian crude imports. 
• India, meanwhile, continues to diversify its sourcing portfolio amid changing trade flows.
• China’s domestic acetone market has been under sustained pressure through 2025. Prices recently fell to a five-year low amid strong supply and weak demand. Earlier in November, supply showed a temporary decline, but demand remained too weak to support prices.
• Imports surged 40.72% year-on-year in the first three quarters, adding further pressure to domestic fundamentals.
• Throughout Q3 and Q4, acetone consistently trended downward, with the “Golden September” demand season failing to materialize, leading prices to hit yearly lows. 
• While stocks were seen tightening temporarily before the festival period, analysts noted a chance of the market bottoming out afterward. Export patterns also shifted, with exports rising 41.28% year-on-year from January to July.

Market Outlook: Pharma Demand Recovery Likely to Support Prices in Coming Weeks

• Market participants reported that acetone prices declined reflecting short-term weakness. Pharma demand remains low for now but is expected to pick up in the next month, providing mild price support.
• Imports remain steady; however, in case of continued low demand, shipment postponements may occur, which might help balance supply and gradually firm prices toward the year-end.
• Acetone prices are expected to stabilise in the near term as imports stay steady and pharma demand recovers in December–January, offering partial support to current weak sentiment.a