The domestic acetone market fluctuated slightly in March, with limited purchasing power from major terminals. According to the Commodity Market Analysis System of Shengyishe, the national acetone market was trading at 7315 yuan/ton on March 1st and 7338 yuan/ton on March 26th, with a fluctuation range of 0.31%.

In the first half of the month, the acetone market underwent a weak adjustment, with little room for market volatility. At the beginning of the month, there was sufficient supply of imported goods, and port inventories increased rapidly. However, the listed prices of factories remained stable, and the mentality of traders was still supported. Downstream demand was mainly in demand, while procurement was flat. In the context of weak supply and demand, market volatility was relatively small. In the first half of the month, the fluctuation space of major mainstream markets was mostly between 20-50 yuan/ton.

In the second half of the month, the acetone market saw mixed ups and downs, with insufficient replenishment of port inventory and tight supply expectations in the East China region. Traders had a positive attitude, and major mainstream markets quickly pushed up their prices. However, downstream follow-up was limited, and there was a clear resistance to high prices. After the 20th, as the supply side loosened again, the market fell by 80-100 yuan/ton. Although the amplitude was not significant, it was the largest fluctuation in the month, and it is expected to fluctuate in the range by the end of the month.

From a supply perspective, at the beginning of the month, with the increase in port inventory, the supply in East China was sufficient, while petrochemical companies maintained stable quotations and listed prices, resulting in relatively stable market quotations. But at the beginning of the month, the 650000 ton/year phenol ketone plant of Zhejiang Petrochemical Phase I resumed operation, and the operating rate of social enterprises remained at 70-80%. Manufacturers shipped according to plan, and there were many negative factors on the supply side.

From a cost perspective, the domestic pure benzene market did not fluctuate much in March. In the first half of the month, it first suppressed and then rose, while in the second half, the market remained basically stable. On March 1st, the pure benzene market was quoted at 8463 yuan/ton, and on March 26th, it was quoted at 8433 yuan/ton. Compared with the previous period, pure benzene is still in a high range. Due to the strong support for the downstream acetone market from a cost perspective, phenolic ketone enterprises are still in a loss making state.

From a downstream perspective, after stabilizing in March, the domestic MIBK market remained strong and upward. On March 1st, the market reported 13933 yuan/ton, while on March 26th, the market reported 15200 yuan/ton, an increase of 9.09%; In March, downstream isopropanol decreased from 8480 yuan/ton to 8230 yuan/ton, a decrease of 2.95%; In March, the market for bisphenol A slightly declined due to its poor demand.

From the perspective of Business Society, the acetone settlement is approaching at the end of March, and the contracts have been depleted, with the market mainly maintaining stable operation. In the later stage, there are fewer bullish factors, and the demand side’s flat purchasing sentiment is average. The actual trading volume is limited, and the current cost side still has support. There is not much fluctuation in factory prices, so we will pay attention to the weekly port inventory situation in the later stage.