In October, the acetone market in China experienced a decline in upstream and downstream product prices, with relatively few products experiencing an increase in quantity. The imbalance between supply and demand and cost pressure have become the main factors causing the market to decline. From the perspective of average gross profit, although upstream products have slightly increased, gross profit is still mainly concentrated in downstream products. It is expected that in November, the upstream acetone industry chain needs to closely monitor the supply and demand game situation, and the market may show a trend of fluctuating and weak operation.

In October, the monthly average prices of acetone and products in the upstream and downstream industry chains showed a trend of either falling or rising. Specifically, the monthly average prices of acetone and MIBK increased month on month, with increases of 1.22% and 6.70%, respectively. However, the average prices of upstream pure benzene, propylene, and downstream products such as bisphenol A, MMA, and isopropanol have all decreased to varying degrees. The imbalance between supply and demand and cost pressure have become the main factors causing price declines.

From the perspective of theoretical average gross profit, the average gross profit of upstream pure benzene and propylene in October was near the profit and loss line, with one being positive and the other being negative. As an intermediate product in the industrial chain, acetone has shifted its price center due to tight supply and cost support. At the same time, phenol prices have bottomed out and rebounded, resulting in a nearly 13% increase in gross profit of phenol ketone factories compared to the previous month. However, in downstream products, except for the average gross profit of bisphenol A below the profit and loss line, the average gross profit of MMA, isopropanol, and MIBK are all above the profit and loss line, and MIBK’s profit is considerable, with a month on month increase of 22.74%.

It is expected that in November, the acetone industry chain products may exhibit a weak and volatile operating trend. Therefore, it is necessary to closely monitor the changes in supply and demand, as well as the guidance of market news, while also paying attention to the changes and intensity of cost transmission.