The acetone settlement for June was concluded at $0.58 per pound. This is a decrease of $0.075 per pound from May’s settlement. The ebb and flow of energy prices is starting to shape 2026 to be the year of volatility. Is acetone along for these rides or does the byproduct have a mind of its own?
The refinery grade propylene (RGP) market remains a ghost. No trades reported over the last month. Since the last report, polymer grade propylene (PGP) has bounced between the mid 30’s to the low 40’s. Over the last week though, PGP has followed the crude trend and is now trading near half a dollar. Additionally, two propane dehydrogenation (PDH) units have reported issues over the last couple weeks. One remains offline.
June acetone imports into the USA came in at 2,800 MT’s. Two bulk parcels arrived in June. Both were from Germany. The last time we saw German product enter the USA was back in January. Asian prices continued to drop since last month’s report until last week. We saw a tick back up, but we suspect this is due to several Chinese phenol/acetone producers going through planned turnarounds. Further bullishness in crude could drive Asian prices up but we don’t believe there is any supply/demand issues for acetone in Asia. We forecast more imports to arrive in the next couple months from a weaker Asian price back in early-mid Q2 while the domestic market was commanding higher prices at the time.
Domestic acetone prices have continued to ease since last report. There have not been any domestic price increase announcements made since April. Current demand is slightly weak as buyers were anticipating continued lower prices. Phenol demand has not changed since last writing and thus is limiting the ability for acetone to get long. Until construction improves, acetone length will be kept in check. Benzene contract prices fell more than 25% from June to July. However, volatility for the renewed Iran/USA tensions has pushed the benzene price back up.
We predicted a drop of at least $0.05 per pound in the acetone settlement from May to June. For July’s settlement, we will call for a roll to $0.02 per pound up amidst propylene’s recent rise. Stay cool out there folks!