Acetone Glut Likely to Last
April 9, 2019
As China celebrates the Spring Festival mid-February, it is not uncommon for their inventory of petrochemicals, including Acetone, to reach an annual high. However, the inventories this year are staggering.
Acetone inventory in China is presently at a 100% increase over last year. Storage facilities have reached bursting point as they turn to smaller, infrequently used tanks to hold the overflow. Ships are delayed in unloading as they arrive in ports with limited to no storage capacity.
Only about 17% of the Acetone consumed in the U.S. is imported, and primarily it comes from Belgium, Korea, South Africa, and Spain. Regardless, the excess inventory in China does effect the global market.
U.S. Phenol/Acetone producers are currently seeking to meet the demand for Phenol, while limiting the oversupply of Acetone. Acetone is a by-product of Phenol. At present, the supply of Phenol is tight.
Demand for Acetone in the U.S. is weak, as domestic Methyl Methacrylate (MMA) producers have initiated shutdowns for various reasons. MMA production is one of the two highest consumers of Acetone.
Also affecting the U.S. Acetone market: In an anti-dumping suit filed by three U.S. producers, the U.S. International Trade Commission voted last week that the U.S. Acetone market is materially injured by reason of product imported from five countries allegedly being sold at less than fair value.
CORECHEM looks forward to supplying your Acetone needs!