The adjustment of the acetone market range in August was the main focus, and after the sharp rise in July, major mainstream markets maintained high levels of operation with limited volatility. What aspects did the industry pay attention to in September?

In early August, the cargo arrived at the port as planned, and the port inventory increased. The new contract shipment, phenol ketone factory discharge, Shenghong Refining and Chemical will not conduct maintenance temporarily, and market sentiment is under pressure. The circulation of spot goods has increased, and holders are shipping at low prices. The terminal is digesting contracts and waiting on the sidelines.
In mid August, the market fundamentals were weak, with holders shipping according to market conditions and limited demand from end factories. Not many proactive offers, petrochemical enterprises have lowered the unit price of acetone, increasing profit pressure, and increasing wait-and-see sentiment.
At the end of August, as the settlement day approached, the pressure on domestic goods contracts increased, and shipping sentiment increased, leading to a decline in offers. Port goods are in short supply, and import resource suppliers offer low and weak prices, with firm offers. Domestic and port goods compete fiercely, with terminal factories digesting inventory and increasing low-priced offers. Downstream enterprises continue to restock, resulting in relatively stagnant market trading and flat trading.
Cost side: The market price of pure benzene is mainly rising, and the load of domestic pure benzene plants is stable. As the delivery period approaches, there may be short covering. Although some downstream demand is expected to increase, this is only a slight rebound after a significant decline in overall downstream demand. Therefore, although demand may slightly rebound, the reference price for pure benzene in the short term may be around 7850-7950 yuan/ton.
The price of propylene in the market continues to decline, and the price of propylene rapidly drops, easing the pressure on market supply and demand. In the short term, there is limited room for the price of propylene to decline. The price of propylene in the main Shandong market is expected to fluctuate between 6600 to 6800 yuan/ton.

Operating rate: The Blue Star Harbin Phenol Ketone Plant is planned to restart before the end of the month, and the Jiangsu Ruiheng Phenol Ketone Plant is also planned to restart. The supporting Phase II Bisphenol A Plant may be put into production, which will reduce the external sales of acetone. It is reported that the 480000 ton/year phenol ketone plant of Changchun Chemical is scheduled to undergo maintenance in mid to late September, and is expected to last for 45 days. Whether the 650000 ton/year plant of Dalian Hengli will be put into operation as scheduled in mid to late September has attracted much attention. The production of its supporting bisphenol A and isopropanol units will directly affect the external sales of acetone. If the phenol ketone plant is put into operation as originally planned, although its contribution to acetone supply in September is limited, there will be an increase in supply in the later stage.
Demand side: Pay attention to the production status of the bisphenol A device in September. The second phase of the bisphenol A device in Jiangsu Ruiheng is planned to be put into operation, and the restart of the Nantong Xingchen device also needs to be monitored. For MMA, due to limited raw materials, Shandong Hongxu’s MMA device is expected to reduce production. The Liaoning Jinfa device is scheduled to undergo maintenance in September, and the specific situation still needs further attention. As for isopropanol, there is currently no clear maintenance plan and there are few changes to the device. For MIBK, Wanhua Chemical’s 15000 ton/year MIBK plant is in a shutdown state and plans to resume restart in late September; The 20000 ton/year plant in Zhenyang, Zhejiang is scheduled for maintenance in September, and the specific time still needs to be followed up.
In summary, the acetone market in September will focus on changes in the supply and demand structure. If supply is tight, it may drive up the price of acetone, but it is also necessary to pay attention to changes in the demand side.