【Introduction】In July, products in the acetone industrial chain mainly showed a downward trend. Supply-demand imbalance and poor cost transmission remained the main triggers for the decline in market prices. However, despite the overall downward trend of industrial chain products, except for a slight expansion of industry profit losses, the profits of MMA and isopropanol stayed above the breakeven line (though their profits were also significantly squeezed), while all other products remained below the breakeven line.
Products in the acetone industrial chain showed a downward trend in July
Products in the acetone industrial chain trended downward this month. Supply-demand imbalance and poor cost transmission were the main causes of the market decline. In terms of the decline range, acetone saw a month-on-month decline of around 9.25%, ranking first in the industrial chain. The domestic acetone market supply in July showed an increasing trend: on one hand, some enterprises that had suspended production earlier restarted, such as Yangzhou Shiyou; on the other hand, Zhenhai Refining & Chemical began external sales of products around July 10, which frustrated industry insiders, pushing the focus of market negotiations downward. However, as prices continued to drop, holders faced cost pressures, and some tried to raise their quotations, but the upward momentum lacked sustainability, and transaction volumes failed to provide support.
Downstream products of acetone all showed a resonant decline. Among them, the month-on-month declines in the average prices of bisphenol A, isopropanol, and MIBK all exceeded 5%, at -5.02%, -5.95%, and -5.46% respectively. Prices of raw materials phenol and acetone both trended downward, so the cost side failed to support the bisphenol A industry. In addition, bisphenol A industry operating rates remained high, but demand followed weakly; against the backdrop of supply and demand pressures, the overall downward trend of the industry was exacerbated.
Although the isopropanol market in the month received positive support from factors such as Ningbo Juhua’s shutdown, Dalian Hengli’s load reduction, and delays in domestic trade cargoes, the demand side was weak. Moreover, raw material acetone prices fell below 5,000 yuan/ton, leaving industry insiders with insufficient confidence, who mostly sold at reduced prices, but transaction volumes lacked support, leading to an overall downward market trend.
The supply of MIBK remained relatively sufficient, with some factories still facing shipment pressures. Quotations were lowered with room for actual transaction negotiations, while downstream demand was flat, resulting in a drop in market prices. The average price of MMA in the East China primary market fell below the 10,000-yuan mark this month, with a month-on-month decline of 4.31% in the monthly average price. Reduced demand during the off-season was the main cause of the decline in the MMA market.
Profitability of industrial chain products was generally weak
In July, the profitability of products in the acetone industrial chain was generally weak. Currently, most products in the industrial chain are in a state of sufficient supply but insufficient demand follow-up; coupled with poor cost transmission, these have become the reasons for the losses of industrial chain products. During the month, only MMA and isopropanol maintained profits above the breakeven line, while all other products stayed below it. This month, the gross profit of the industrial chain was still mainly concentrated in the MMA industry, with a theoretical gross profit of around 312 yuan/ton, while the theoretical gross profit loss of the MIBK industry widened to 1,790 yuan/ton.
Products in the acetone industrial chain may operate in a narrow range of fluctuations in August
It is expected that products in the acetone industrial chain may operate in a narrow range of fluctuations in August. In the first ten days of August, industrial chain products will mostly focus on digesting long-term contracts, with low enthusiasm for active procurement in the market. Transaction volumes will provide limited support to industrial chain products. In the middle and late ten days, as some downstream spot procurement intentions increase and the “Golden September” market boom approaches, some end-demand may recover, and transaction volumes may form certain support for prices. However, in terms of the fluctuation range this month, expectations remain limited.
Post time: Aug-08-2025