In recent years, the growing demand for Acetone in industries such as textiles, cosmetics, electronics, pharmaceuticals, and petroleum has significantly boosted the product's consumption over time. During the forecast period of 2020-2025, Acetone's market size is expected to grow 40.8% from the current value. The ongoing higher demand for acetone has led to a rise in prices in New York. This article will look into analyzing the US chemical market while discovering the recent surge in acetone prices.
Increased Demand For Acetone
The colorless, highly volatile, and flammable chemical has numerous uses and benefits and is used in many industries to manufacture a wide range of products. The compound is dissolved with impurities and is available in various types and quality, supplying the demand for its consumers' requirements.
With the global pandemic outbreak, the need for hand sanitizers has tremendously multiplied in every country. Moreover, the increased awareness of simple hygiene practices has contributed towards a growing desire for health care, skincare, and cleaning products resulting in further growth in Acetone’s demand.
Acetone can remove build-up dirt, oil and can act as a high-octane exfoliant. Clear skincare solutions are another reason for acetone to be in the spotlight throughout the forthcoming years.
MMA (methyl methacrylate acid) is considered the second-largest market for acetone with its numerous applications in various medical, dental, joint replacement, and other industrial applications. MMA polymer's ability to mold into multiple ranges of end-user products has led to the significant demand of the product.
Global business insights forecasts the acetone market to reach USD 4995.3 million by 2027 with its increased demand worldwide. This is predominantly due to the increasing everyday demand for hand sanitizers and disinfectants around the world.
Dimethyl ketone or acetone can derive isopropanol, which is the crucial ingredient for sanitizers and disinfectants. The dynamic economic development in the Asia-pacific region and the consistent buoyant demand for MMA, especially from the electronics industry, is another reason for the urging of acetone production.
Recent Surge In Acetone Prices
The substantial chemical supplier need has allowed acetone producers to push through the price, with two price increases over January in 2021. Sources state that the prices may increase further shortly.
At least two producers were heard to announce a 7cent/lb in early January following an increase of 10-12cents/lb during the mid of month. The absence of spot availability and the extremely tight market demand has led to a dramatic pricing hike by the producers.
Acetone barge pricing has given the range of low to mid-80s Cent/lb. The pricing demands have been supported by the January MMA contract settlement and the rising feedstock costs. Moreover, the price of refinery-grade propylene also rose from 13.25 cents to 39.25 cents from the beginning to the end of January.
Although there has not been an official announcement of further price increases, market participants expect changes in the near future. The pricing changes will favor chemical supply companies further with the increased demand.
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