Since the beginning of March, the domestic acetone spot market prices have been widely oscillating. early March, due to the impact of the Russian-Ukrainian conflict continued to ferment, international crude oil prices rose to a high in recent years on March 8. Driven by this, directly driven by pure benzene and propylene rose, the rise in raw material costs, supporting acetone prices in the first half of March continued to rise, up to 6300 yuan / ton.

However, by the beginning of mid to late March, international crude oil prices gradually fell, driving propylene prices downward. At the same time, a new epidemic broke out in Shanghai and the districts started to be closed, with the radiation and impact on the surrounding cities gradually increasing under the continued influence of the epidemic. Due to the epidemic traffic control, logistics and transportation were affected, and the downstream industries’ start-up rate dropped, further depressing acetone prices, which fell to RMB 5,620/ton by April 22.

Acetone supply, the start of each device is relatively stable, only Shanghai three well 400,000 tons / year phenol ketone device to reduce the negative to 60%, but due to the impact of the epidemic, East China logistics and transport continued to be poor, longer transport cycle, freight costs rose, for phenol ketone plant raw material procurement and product export impact, there is some support for the market price.

It is reported that as several sets of domestic phenol ketone plant will focus on planned maintenance in May-September, when the acetone contract and spot supply will be tightened, or will further support the domestic market.

On the demand side, since March 27th Shanghai epidemic intensified, East China bisphenol A and MMA plant starts are affected by the impact began to decline. Shanghai Roma 100,000 tons / year of MMA plant at the end of March due to shortage of raw materials supply and logistics restrictions and reduced negative to 70%; East China region, an MMA plant affected by the epidemic load down to 50%; Sinopec Mitsui (Shanghai Caojing) 120,000 tons / year of bisphenol A plant on March 14 due to the epidemic reduced negative 15% to 85%.

As there is no new downstream capacity on line in the short term, market participants are mostly concerned about the start-up of the recently put into operation devices, especially the second phase of the MMA plant of ZPMC, whose operation will affect the supply and demand for acetone.

In the short term, acetone is mainly vulnerable to shocks, domestic acetone market is linked to the development of the epidemic in East China. The epidemic prevention leads to longer transportation cycle and tightening of capacity still or continue, in the case of rising freight and lifting difficulties, downstream factories also choose to wait and see the market. The changes in the epidemic and response policies may directly affect the trend of acetone market.