Altivia Petrochemicals, a leading player in the Acetone industry in USA, has announced an increase in Acetone prices across North America, effective August 21, 2024. This decision comes in response to ongoing market pressures and the evolving dynamics within the Acetone sector.

According to the official statement from Altivia Petrochemicals, the price adjustment on Acetone is of around $0.05 per pound. The increase reflects the current conditions within the Acetone market, which have necessitated adjustments to ensure continued supply and sustainability.

In the announcement, Altivia Petrochemicals also indicated that they may, at their discretion, restrict the acceptance of new orders placed before the effective date of the price hike. This measure is intended to manage demand in accordance with historical purchasing patterns and to uphold contractual obligations.

The move by Altivia Petrochemicals comes at a time when the chemical industry is experiencing significant volatility, with price adjustments becoming increasingly common as companies navigate supply chain challenges and fluctuating raw material costs. U.S. crude oil inventories increased as demand picked up, according to the U.S. Energy Information Administration's (EIA) latest report.  The data revealed that commercial crude oil stocks, excluding the Strategic Petroleum Reserve, rose by 1.4 million barrels, and despite this increase, current inventory levels remain low to moderate.  As per ChemAnalyst, the Acetone prices are anticipated to increase in the upcoming weeks following the announcement and the supply disruption in the regional market.

Acetone prices in the US market are poised to increase and showcase upward momentum in the upcoming weeks amidst limited supply and increased demand outlook. The demand for Acetone has surged due to increasing requirements from manufacturing units in both domestic and international markets. The Acetone market's dynamics are largely influenced by production costs, consumer demand volumes, and inventory levels within the domestic market. Propylene is one of the major upstream elements required during the production of Acetone in the domestic market and the recent price momentum has been on the stable belt with the potential of moving upward in upcoming weeks.

However, the situation has become more complex as the supply chain in the Canadian market faces significant challenges. The ongoing railway strike has disrupted transportation routes, causing a ripple effect across the Acetone manufacturing industry in North and South America. This disruption is expected to continue impacting production and the domestic market for Acetone in the coming weeks as industry players, including shippers and manufacturers, navigate the challenges posed by the strike.