The acetone settlement for February was concluded at $0.455 per pound. This is an increase of $0.03 per pound from January’s settlement. Energy prices have ramped up amidst the conflict in the Middle East. It’s anybody’s guess where values are going to end up over the next few weeks. The short term will bring increased prices…and acetone is no exception.
The refinery grade propylene (RGP) market saw 2 railcar trades since the last report. The average of those trades, $0.3275 per pound, was an increase of nearly $0.07 per pound since the last railcar trade reported in December. Polymer grade propylene (PGP) saw trades jump to as high as $0.45 per pound late last week before retreating to $0.40 per pound. There are no issues on supply/demand for propylene but increased crude oil values have taken hold. Henry Hub natural gas prices have started to pick up as well, which is important to watch for propylene too.
Nearly 7,000 MT’s of acetone arrived in the USA in January 2026. The large majority, liquid bulk vessels, came from Europe. While we expect to see imports in February and March, we are predicting the cargos will be greatly reduced for April and onward. Asia’s acetone markers are moving up faster than ours and Europe has already inquired the USA about fulfilling some of their needs.
Domestic price increases have been announced by producers and distributors with varying levels and effective dates. The increase amounts vary between $0.08-$0.20 per pound. Availability has grown thin in the short term and there is one domestic producer preparing for a planned turnaround in early April. However, domestic demand for acetone has not changed since last month’s posting.
We called for a moderate increase from January to February for the USA acetone settlement. The movement upwards was $0.03 per pound. We predict the March settlement will be at least $0.04 per pound higher with a case to be made for more amidst lack of supply options.