US acetone supply tightens sharply, defying weak 2026 outlook

US acetone supply has tightened sharply in recent weeks, with prices surging and availability becoming increasingly constrained, marking a reversal from the subdued demand outlook that characterized expectations for the first half of 2026.

Market participants said the supply crunch has caught many off guard, as suppliers had anticipated weak pricing and ample availability heading into the year. Instead, multiple production outages, strong demand, particularly from Europe and Latin America, and elevated feedstock costs have combined to create what sources described as a "seller's market."

"Market shortness in acetone has caught people almost off guard," a US-based distributor said. "Producers expected to have acetone available, and the prices were going to be poor."

Platts, part of S&P Global Energy, assessed the spot acetone price at $1,547/metric ton FOB US Gulf Coast April 14, up $114 week over week and the highest level since February 2024, when the assessment stood at $1,700/mt. The assessment came within pricing indications heard and corroborated at the low to mid-70 cents/pound ($1,543/mt-$1,653/mt).

Domestic acetone prices were assessed at $1,786/mt DAP East of the Rockies April 14, up $111 week over week and the highest since June 2024, when the assessment stood at $1,887/mt.

Supply disruptions

Multiple producers have faced operational challenges, tightening supply. Some facilities are down for maintenance while others have production issues, according to market sources. At least one supplier is sold out on acetone until at least June, according to participants, while another is scheduled for a three-week planned maintenance in April. The distributor added that barge availability is limited.

Operating rates for phenol and acetone production were heard at 75%-80%. According to US sources, the supply constraints have prompted panic-buying behavior among customers, with major consumers actively seeking large volumes. Export activity, particularly to Europe, has intensified, where supply disruptions have increased demand for US material.

"Europe is feverishly looking for acetone now more than Latin America," the distributor said.

Latin American buyers in Brazil, Colombia, and Mexico are also requesting phenol and acetone, as spot prices in the region have climbed sharply.

Raw material costs have surged, with benzene and propylene prices described as "through the roof" by market participants. "Benzene costs are sky high," a US-based acetone and phenol supplier said. Propylene pricing has climbed from 47 cents/lb in March to the current 60-67 cents/lb.

Phenol lags

While acetone has surged, phenol pricing has lagged, with demand remaining subdued. Platts assessed spot phenol prices at $1,401/mt FOB US Gulf Coast April 14, up $114 week over week. Domestic term phenol prices were assessed at $1,423/mt ex-tank East of the Rockies April 14, up $22.

The adder to the benzene April contract price was corroborated at 8-18 cents/lb for FOB USGC and 8-12 cents/lb ex-tank East of the Rockies. The April benzene CP itself settled at 409 cents/gallon.

"Phenol prices are lagging and are not expected to increase in the near term," a supplier said. A US-based phenol and acetone supplier said, however, that "phenol demand is starting to pick up, driven by bisphenol A, methyl methacrylate, and increased optimism in the construction industry."

Still, the current tightness is expected to persist for at least the next six months, according to multiple sources.