In June, the focus of the domestic acetone market mainly fell. The acetone market in East China has been trading at an average price of 5450 yuan/ton since June 1st, but has dropped to 5180 yuan/ton on June 30th, a decrease of 4.95%. From the perspective of the national acetone market, there is an equally significant downward space.

In the first ten days of the year, the supply was sufficient, the price was reported low under the pressure of traders, and the social resources were sufficient after the Dragon Boat Festival. The port inventory rose to 28000 tons, and the supply of goods was abundant. The market center of gravity declined, falling to a market low of 5250 yuan/ton. After a period of terminal replenishment, the market once again entered a state of sluggish trading.
The geopolitical situation has changed, with a sharp drop in crude oil and negative costs in the latter half of the month. Crude oil has driven the decline of pure benzene, and styrene has experienced a deep decline in a single day. Pure benzene has fallen, dealing another blow to the already lukewarm acetone market. As the end of the month approaches, the market has fallen below 5200 yuan/ton, and trading is deadlocked.
As the end of the month approaches, there will be little positive news in the later stage, and the overall market is in a downward trend. At the end of the month, the market fell to the lowest point of the month, and negotiations in the East China region are at 5150-5180 yuan/ton.

In terms of equipment in June: Early shutdown equipment such as CNOOC Shell, Yanshan Petrochemical, Jilin Petrochemical, Huizhou Center Phase I, and Gaoqiao Petrochemical are still in operation. The 350000 ton/year unit of Tianjin Petrochemical was shut down for 40 days and resumed operation on June 2nd. The 320000 ton/year phenol ketone unit of Yangzhou Shiyou was shut down for maintenance on June 13th, lasting about 30 days.
It is expected to remain weak and difficult to change in July. From the supply side, the Zhenhai Refining and Chemical Phenol Ketone Plant plans to produce products in mid July, resulting in an increase in domestic acetone supply. From the perspective of imports, Saudi Arabia’s facilities have been shut down for maintenance, Middle Eastern sources are limited, and Thailand’s import resources are normal. Currently, it appears that the import volume has slightly decreased. From the perspective of demand, downstream bisphenol A and isopropanol units have been improved, but overall procurement is still mainly based on demand. From a cost perspective, the external environment remains weak, and pure benzene is expected to continue to decline, making it difficult to support acetone. It is expected that the acetone market will continue to operate weakly in July.