The acetone settlement for April was concluded at a split of $0.6925 and $0.72 per pound. Using the average of this range and March’s, April’s settlement represents a $0.1375 per pound increase over March. Things have certainly quieted down from last month, but we don’t think the window of volatility is shut.
The refinery grade propylene (RGP) market did not see any trade activity over the last month. Polymer grade propylene (PGP) saw a sporadic range of trades. Highs over the last month were hit in mid-April at $0.61 per pound while the lows came several days later at $0.42 per pound. Trades popped back up into the mid 50’s closer to the end of April and current trades are hovering around the half dollar mark. Propylene has certainly stopped dancing to the crude oil markets as it had in March and the first part of April. The propylene derivatives arb to Europe and Asia has been dimmed. Domestically, there has been a report this week of a compressor trip at a PDH unit.
April imports into the USA amounted to approximately 500 MT’s with none of the volume in bulk. May and June imports should be minimal as well. However, Asian pricing has come off since last report. Lower propylene values, muted demand, and rising acetone output in China has caused Asian pricing to fall. A vessel has been booked for the USA for 2H May shipment for arrival in July. It appears the domestic ceiling has now been limited by Asian imports for 2H 2026. This is under the assumption tensions in the Middle East don’t spark up again.
There have been no further acetone price increases announced since last writing. Acetone availability is still on the tighter end though. Phenol demand has still not come to life and high benzene prices are not helping that case. However, we are exporting more phenol derivatives YTD than 2025. MMA demand is described best as average. Export opportunities for MMA derivatives are still out there though.
We predicted at least a $0.08 per pound increase from March to April. For May’s acetone settlement, we are predicting a decrease of at least $0.03 per pound amidst weaker propylene. Welcome to almost summer folks!