According to ChemAnalyst report, “Global Acetone Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, Grade, End Use, Application, Sales Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2030”, the global Acetone market is expected to grow at an astounding CAGR of 9.3% during the forecast period. Principal demand for Acetone is from the solvents industry representing about 30% of the global demand, followed by Methyl Methacrylate (MMA) and Bisphenol A (BPA) manufacturing. It is anticipated that the global Acetone demand will be led by downstream Bisphenol A sector by 2030.
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However, at the start of 2020, ChemAnalyst report has recorded a spike in Acetone demand globally, considering the effects of novel coronavirus in the current fiscal. Acetone demand has strengthened since the outbreak of pandemic as the commodity stands out amid dwindling petrochemical market. During the pandemic, Acetone market has become eye-catching due to its exceptionally rising demand for manufacturing Iso Propyl Alcohol (IPA). Demand for IPA has skyrocketed due its principal consumption in hand sanitizers and other disinfectants products whose sales have drastically gone up. As a result, the US Department of Homeland Security declared INEOS Acetonitrile, IPA and Acetone as “Critical to ensure National Resilience”. Triggered by surge in global demand, IPA spot FOB US Gulf prices have been assessed to fly at all time high between USD 1,370 to USD 4,190/tonne in April 2020, triggering a surge of 15% in global Acetone prices since March 2020.
According to the report, INEOS Group, Cepsa Corporation, Kumho shell, PTTGC., Formosa Chemicals and Fibre Corporation., Taiwan Prosperity Chemical Corp (TPCC)., Deepak Nitrite Ltd., LG Chem, Mitsui Chemicals Inc., DOW Chemicals, SABIC Innovative Plastics, Shell are some of the leading players operating in the Global Acetone market. Cumene peroxidation is the common process used for Acetone production with almost 90% share in the Acetone produced globally followed by dehydrogenation of isopropanol and other processes. Rise in the industrial production of Cumene with new plant capacities coming up by 2023 will further lead to rise in global Phenol demand.
The ChemAnalyst report analyzes that Asia Pacific region led by China is contributing to the largest Acetone market share in 2019 and is forecasted to experience the fastest growth rate of more than 6 per cent in the forecast period. This is attributed to strong growth in the country’s Bisphenol A and polycarbonate sectors with rigorous addition of Phenol and Acetone capacities to ensure reduced dependency over imports and make the economy self-reliable. Also, eyeing on increased demand for Acetone based downstream products in the second quarter, Indian players are also expecting a sharp spike in Phenol and Acetone demand which is likely to propel growth of these products in Asia Pacific market.
“Acetone market players are optimistic as the industry projects robust growth due to its increased consumption as a solvent in paints and adhesives, pharmaceutical, cosmetics and industrial sector. As major countries like the U.S. and India are imposing anti-dumping duties on Acetone imports from South Korea and China, key players are ramping up their domestic capacities to strengthen their domestic presence. Moreover, rising plant capacities and strategic investments in the sector would help underpin the success of the Acetone market for the next 6 years. Major companies are rigorously investing in the setting up Cumene production units. In Q3 2020, INEOS Phenol broke grounds to set its world-scale Cumene production unit in Germany. The new unit is scheduled to be completed in 2021 and will contribute about 750 KT of global Cumene demand. Furthermore, the key manufacturers operating in the downstream BPA and MMA markets are expanding their business through mergers and acquisitions creating wider opportunities for the growth of Acetone demand over the next six years. Acetone over-capacities and disrupted supply-chains, are some of the threats that are lying before the dynamic Acetone industry, and hence its becomes crucial to understand what impact these changes will have on the value chain to know the global Acetone value chain.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.