AFPM ’19: US acetone oversupply to last through 2019 on weak demand

SAN ANTONIO (ICIS)–US acetone is likely to be oversupplied through the year on the back of weak demand, sources said this week.

Even the ITC fire in the US Gulf Coast will not cut into the length as demand is currently weak, the sources added.

The market participants were speaking on the sidelines of the International Petrochemical Conference (IPC).

Two downstream methyl methacrylate (MMA) producers remain offline.

The extent to which the anti-dumping investigation has impacted import volumes remains unclear. A preliminary decision is expected on 4 April.

Sources said less material is on the water though as some parties are not willing to take the risk of sourcing material from a country involved in the probe.

Oversupply will continue to weigh on operating rates despite strong demand for co-product phenol.

Price declines in the spot and distribution markets have slowed, sources said.

Some slight softening has been noted in each month this year.

Major US acetone producers include INEOS Phenol, Shell Chemical, Altivia, AdvanSix, SABIC and Olin

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC takes place on 24-26 March in San Antonio, Texas.