Since mid-December, the Asian Acetone market has remained steady, and this trend is expected to carry through early January 2025. A key factor contributing to this stability is the close relationship between Acetone and phenol production, as Acetone is a co-product of phenol manufacturing. Variations in phenol production have a direct proportional impact on Acetone prices and supply levels in the market.

In light of sluggish market conditions, raw material cumene producers and suppliers in the region have opted for a cautious pricing strategy, choosing not to increase prices. Cumene is the essential feedstock for Acetone production, and its prices has remained stable. This has had a direct impact on Acetone prices, helping to maintain market stability. Manufacturers have adopted this cautious approach due to reduced inquiries from end-use industries. As a result, the absence of major fluctuations in cumene prices has prevented any significant changes in Acetone pricing, reinforcing the prevailing trend of stability.

Last week, the domestic Acetone market experienced tightened spot resources due to a sharp decline in port inventories. While market sentiment showed optimism, Acetone demand remained stable, with many end-users showing little urgency to replenish stocks. Limited participation from intermediate traders further restricted potential price increases, resulting in stable Acetone prices with no significant upward movement.

Terminal enterprises also showed limited interest in making new purchases, leading to fewer demand orders. Traders have faced little pressure to move their stocks, contributing to the stable pricing environment. Despite sluggish inventory flow and unfavorable profit-sharing opportunities, trading activity has remained moderate.

Meanwhile, the Chinese real estate market, which has seen a third consecutive year of double-digit declines in sales and investment, continues to exert downward pressure on domestic demand. However, the Chinese government's policies aimed at stabilizing the sector may help alleviate some of these challenges. Given that construction is a key consumer of Acetone, the slowdown in real estate may indirectly impact Acetone demand, further supporting price stability.

Additionally, Saudi Aramco raised the price of its February 2025 crude exports to Asia, increasing the premium for Arab Light crude. This price hike follows OPEC+ production cuts and diminishing supplies from Russia and Iran. However, the effect on Acetone prices is expected to be limited, thanks to the stable upstream costs. According to ChemAnalyst, Acetone prices in the Asian market are expected to experience slow and steady movement in the coming weeks, with the first half of the quarter anticipated to have a submissive outlook.