Global Acetone Market Continue Trend Downward Amid Declining Feedstock Prices and Oversupply

The global Acetone market is currently facing a downward trend across major regions, Asia, the U.S., and Europe, driven by a mix of weak demand, oversupply, and declining feedstock prices, although the dynamics in each region differ slightly.

In Asia, Acetone prices have been steadily declining due to a combination of sluggish domestic demand and falling cumene prices. Key industries, such as solvents and adhesives, are facing moderate purchasing activity, keeping upward price momentum in check. The ongoing oversupply of Phenol in the region has led some producers to reduce operations, which has impacted Acetone production. However, the overall supply of Acetone has not been significantly constrained as imports from other regions, particularly from the U.S. and Europe, continue to supplement local needs. The downward pressure is further exacerbated by falling cumene prices, driven by fluctuations in global crude oil prices.

In India, despite the broader market challenges, Haldia Petrochemicals Ltd. (HPL) is proactively addressing the need for increased domestic Acetone production. The company has entered into a license amendment agreement with Lummus Technology to expand its phenol production capacity at its upcoming Phenol and Acetone Plant in Haldia, West Bengal. This expansion, aimed at meeting rising domestic demand, will increase HPL's phenol output. HPL's investment is a positive signal for the Indian Acetone market, suggesting that while regional supply remains under pressure, efforts to boost production capacity may help mitigate the long-term supply-demand imbalance.

The U.S. Acetone market is similarly experiencing price declines due to weak demand but with additional complexities. The oversupply of Acetone in the market, coupled with sluggish demand from industries like coatings and automotive, has kept prices under pressure. The International Longshoremen’s Association (ILA) ended negotiations with United States Maritime Alliance (USMX) after two days, citing a breakdown over semi-automation plans. The ILA criticized USMX for contradicting earlier statements on automation, while USMX argued that the ILA’s stance would hinder technological progress and the industry's ability to meet future supply chain demands.

US President-Elect Donald Trump has promised to implement higher tariffs, reduce corporate taxes, and ease regulatory requirements for companies, continuing the policies that US chemical producers experienced during his first term from 2016 to 2020. As per ChemAnalyst, with steady demand from end-use industries, the downward trend in Acetone prices is expected to persist across Asia, the U.S., and Europe in the short term, though regional dynamics will continue to shape market proportions.