Acetone prices in Europe may rise in coming months as demand has been improving and output will likely be limited by scheduled shutdowns, sources said.
Demand from big consumers was solid, according to acetone producers, some of whom said they were almost fully contracted for July.
"Contractual demand is very good. We have only limited acetone for the spot market. I would not be surprised if there was an increase in spot prices this summer, despite a typical slowdown in demand over the holiday period," one European producer said.
Currently, there is ongoing work at one of Cepsa's production lines in Huelva, Spain, which is able to produce 135,000 mt/year of acetone. The work, which commenced mid-June, was expected to last 3-4 weeks.
Additionally, Novapex will take down its 115,000 mt/year acetone line in Roussillon, France, in August, followed in September by Ineos's turnaround in Gladbeck, Germany (395,000 mt/year), and Cepsa's in Huelva at a second and larger line (150,000 mt/year). Versalis is also planning a turnaround at its 185,000 mt/year Mantova plant in Italy during the second half.
Adding to volumes, Domo brought back its 115,000 mt/year acetone-producing plant in Leuna, Germany, last weekend after maintenance.
Meanwhile, there continued to be a risk of a reduction in run rates, sources said. Following restarts of bisphenol-A plants in Asia, European bisphenol-A producers could again lose market share, which would lead to a reduction in demand for phenol.
Acetone is a byproduct of phenol production, and its production is driven by phenol economics.
