The Northwest European acetone market has come under further pressure this week from increasing domestic and import supplies, and prices have spiralled to their lowest level since early May.
Spot acetone prices fell a further Eur20/mt this week to Eur780/mt FD NWE, and are now down by over 8% in the past three weeks.
Phenol demand in the region remains healthy, and producers are running their plants at high operating rates to meet it.
Phenol plants produce acetone as a by-product.
All limitations on supplies in the region have now ended, with both Borealis and Cepsa having lifted their force majeures.
In addition to the improved output within the region, Europe is now an attractive destination for imports.
Following startups of phenol/acetone plants in China earlier this year, the Asian market has reached saturation, and surplus volumes are available for potential export.
Asian prices were last assessed at $595/mt CFR China, almost $270/mt below those of Europe.
