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Updated to Q4 2018
Length was a predominant feature in the Europe acetone market in 2018 with the fourth quarter proving a slight exception. An acetone force majeure in October by Swiss-headquartered supplier INEOS Phenol from its Gladbeck and Antwerp facilities balanced the market. The production issues at its 405,000 tonne/year Gladbeck and 500,000 tonne/year Antwerp units stemmed from low river Rhine water levels alongside upstream cumene supply difficulties. The force majeure was then lifted in late December.
De-stocking and a seasonal slowdown due to the Christmas holiday period interrupted Europe acetone demand at year-end. Although, there were participants that also experienced heightened consumption in response to production issues in the fourth quarter. Therefore, order book volumes were mixed in the market with export activity minimised as sources focused on domestic business. Downstream in the methyl methacrylate (MMA) market, multiple producers also had lower operating rates in December.
We offer the following regional Acetone coverage to keep you informed of factors and developments affecting prices in the Europe Acetone marketplace.
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The main use of acetone, accounting for over a quarter of total consumption, is in the manufacture of acetone cyanohydrin, a feedstock for methyl methacrylate (MMA). The other major and fast growing derivative is bisphenol-A (BPA).
The ICIS Asia weekly acetone report provides key price quotes for China and southeast Asia (SE Asia).
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Feedstock benzene and propylene are tracked and an overview of key downstream markets is provided.
Understanding the key cost & freight (CFR) China spot market is complex because of a variety of anti-dumping duties leveraged by the Chinese government.
To provide greater clarity for subscribers, ICIS provides a normalised CFR China quote based on 0% anti-government duty and a 5.5% import duty.
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