Based on the trend of cost recovery, supply side maintenance, and demand recovery before the May Day holiday, it is expected that the domestic acetone market will show a strong oscillation pattern after the holiday, and there will be a certain driving force for price increases in the short term.
On the first day after the holiday, the market opened, and holders had a strong willingness to report high prices due to inertia. Boosted by the lack of supply pressure and cost recovery in late April, the operator's mentality is stable. After the holiday, downstream industries mainly focus on consuming inventory and replenishing essential needs, and the transaction volume needs to be followed up after the acetone price surges.
After the holiday, the market was mixed with bullish and bearish factors. From the supply side, the maintenance and load reduction of the phenol ketone plant in late April led to a decrease in the industry's operating rate. At the same time, the import of goods has decreased, port inventory continues to deplete, and spot circulation is showing a tight trend.
From the demand side, downstream industries such as bisphenol A and MMA have entered a period of urgent inventory replenishment, with a slight release of procurement demand, but overall, procurement is still mainly based on demand.
From a cost perspective, the slight rebound in international crude oil prices before the holiday has driven up the price of pure benzene, and the supporting effect of phenol ketone production costs has been amplified. However, the downward transmission ability of upstream raw materials needs to be paid attention to.
From the perspective of the operator's mentality, with the periodic rebound of prices, the willingness of operators to raise prices has increased, and the market trading atmosphere may improve compared to April.