Acetone prices are gaining strength in Germany after a continuous drop in the previous month. The rising freight charges and the high demand for the product from the downstream manufacturing sectors support the price rise. Moreover, the fluctuating raw material prices are another factor impacting the Acetone values positively.

The demand for Acetone has started rebounding in the European region since the start of this week. The insufficient product availability in the European local market has led to the increasing demand. Moreover, Germany is one of the major exporters of Acetone to other European countries. The rise in temperature in the previous week resulted in low water levels in the Rhine river, which inflated the freight charges. Moreover, Germany’s coal import through the Rhine river was disrupted as the ship stuck in the River Waaldue due to the low water level. Thus, the German traders opted for rail transport to export their products due to the tight coal supply and reduced domestic shipping. However, the rise in coal and fuel costs inflated rail freight charges, further increasing the price of exported Acetone cargoes.

In addition, the high demand from several regional markets and the scarce transport capacity have triggered Acetone prices. Due to the declining demand in the previous month, the German manufacturers halted their production activities; hence, the current surge in need and the inadequate availability of the product in the German domestic market boosted the Acetone values. However, the fluctuating Crude prices influence the feedstock Benzene prices, further resulting in an escalated price trend. As a result, the FD Karlsruhe price of Acetone in Germany rose by 1.8% with a rise of $15 per tonne.

According to the ChemAnalyst team, Acetone prices might increase in the coming weeks. The water level in the Rhine river is likely to decrease, affecting trade activities and might result in a continuous rise in the freight charges. Additionally, exporting commodities through rail might create havoc due to the reduced capacity of rail and the high fuel costs. Furthermore, the escalating demand from the downstream derivatives Bisphenol A and Methyl Methacrylate manufacturers could inflate the Acetone values.