US acetone prices surge on favorable fundamentals, stronger raw materials

New York — US acetone prices have surged so far in January as a confluence of factors have lent support, sources have told S&P Global Platts.

Favorable fundamentals, coupled with stronger feedstocks and supply constraints, have allowed producers in the US to push through two price increases over the month and sources have said they expected further increases.

At least two producers were heard to have announced a 7 cents/lb increase in early January followed by mid-month announcements of 10-12 cents/lb, sources said. The acetone market was characterized as extremely tight and sources have said recently that spot availability was absent, adding that if material could be found, it would command a very high price.

Notional indications put acetone barge pricing in the low to mid-80s cents/lb range.

Sources said at least one producer was sold out until February.

Related to demand, participants added that acetone demand was strong, particularly from the downstream methyl methacrylate segment. Demand in the segment was characterized as robust allowing producers to push through significant price increases as the January MMA contract was heard settled at 61 cents/lb, up 13.5 cents from December.

Acetone pricing saw further support from rising feedstock costs. Refinery grade propylene prices in the US have posted notable gains in January, rising 13.25 cents since the beginning of the month to close Jan. 26 at 39.25 cents/lb.

Market participants anticipated little change in the near term, adding that further price increases could loom on the horizon, though no announcements have been heard.