The Asian Acetone prices in the market are still moving forward in December 2024 without many fluctuations and variability owing to the slow and steady demand outlook. In the last quarter of 2024, the Asian Acetone giant players usually go on the planned plant shutdown, followed by some temporary halt in the operational activities consequently impacting the overall capacity and the available commodity volume. Apart from these facets impacting the prices, the production cost further plays a crucial role in deciding the final price range of Acetone in the Asian and global markets. Cumene is the feedstock required for the production of Acetone hence, the final production cost of the commodity evenly gets impacted by the feedstock and energy prices in the domestic market.

The domestic Acetone market experienced a persistent downward trend, driven by moderate restocking activity from terminal factories. The overall sentiment within the market remained subdued, with trading dynamics showing limited enthusiasm. Acetone traders largely managed shipments in alignment with the prevailing market conditions, keeping a cautious approach. Negotiations and follow-up activities were relatively minimal, reflecting a lack of significant momentum in transactions. The trading volume was moderate, failing to showcase any notable uptick. Meanwhile, Acetone quotations continued their descent towards the lower range, further highlighting the bearish tone of the market. As buyers exercised caution, the lack of aggressive purchasing interest contributed to the restrained trading environment. This trend underscores the challenges facing the market, with little to no signs of immediate recovery in demand or pricing.

Major Acetone manufacturers in the Asian market, including Chang Chun Plastics and Taiwan Prosperity Chemicals in Taiwan, PTT Global in Thailand, and LG Chem in South Korea, undertook planned maintenance shutdowns during November and December due to subdued demand. As the quarter concludes, these industries are focusing on fulfilling pending orders while addressing destocking activities. This approach aims to streamline operations and optimize procurement flows in preparation for the upcoming year with fresh targets and improved market strategies.

Although the cumene process remains the predominant method for Acetone production, alternative techniques such as the dehydrogenation of isopropanol are utilized on a smaller scale in specific regions where isopropanol is more accessible. However, these alternative methods are less widely adopted due to their higher production costs and limited economies of scale compared to the cumene process.

The industry continues to struggle with a combination of sluggish external demand and excess production capacity in China. South Korean industries, particularly in the chemical sector, remain heavily reliant on exports to China, where domestic self-sufficiency has significantly increased over time. Despite recent challenges, there have been indications of improved export activity over the broader period, according to the Ministry of Trade, Industry and Energy (MOTIE).

As per ChemAnalyst, the Acetone market is further expected to showcase slowdown and price to fluctuate in a narrow window amidst the geopolitical turmoil, varying production cost, and slow operational pace.