Forecasts As of February 2023
Acetone supply is projected to tighten over the first half of the year because of ongoing slow phenol demand. MMA demand is slow to start the year, and is not expected to be as robust as it was in 2021 and early 2022, but it is projected to pick up for seasonal applications beginning in March. Acetone barge contracts will likely jump higher in March and then into summer, narrowing the spread between barge and truck values. Distribution prices are also expected to increase over the first half of the year. It is not expected that imports will provide alleviate domestic shortages. However, with China “reopening” phenol demand could begin to improve, which would prompt producers domestically and abroad to ramp up rates.
*Please note forecasts are based on analysis of historical trends and cycles as well as expectations regarding future supply and demand patterns. The data is provided for informational purposes only and Chemical Intelligence does not assume any liability for any decisions attributed to reliance on said information.