Although phenol and ketone are co products, the consumption directions of phenol and acetone are quite different. Acetone is widely used as chemical intermediate and solvent. The relatively large downstream are isopropanol, MMA and bisphenol A.
It is reported that the global acetone market is in a situation of oversupply. The Chinese market is the most important destination for the circulation of global goods. At present, China still has a high import volume of acetone, and the domestic supply is also surging.
However, on the demand side, except for the development of bisphenol A, the growth rate of other major downstream production is slow, resulting in the slower demand growth of acetone than the supply growth, and the slower demand growth than the average level in recent five years, which is not conducive to the price rise.
In 2022, with the development of acetone downstream, the proportion of downstream consumption has changed significantly, and bisphenol A and MMA are the most important downstream acetone. The capacity of MMA will increase by 47% in 2022, and the average annual capacity growth will be 25% in 2018-2022. In a certain period of time, the demand for acetone also has a supporting role.
The production capacity of isopropanol in the first downstream has decreased significantly, and the consumption of isopropanol will show a zero growth trend in 2022, with an average annual growth rate of 5% in 2018-2022. However, the isopropanol export market is good. In 2022, the export volume will increase by 62%, driving the domestic output to grow by 9%, and achieving the highest growth in the industrial chain with a gross profit of 188%.

The growth of acetone demand is slow, and price pressure is expected to exist
Although phenol and ketone are co products, the consumption directions of phenol and acetone are quite different. Acetone is widely used as chemical intermediate and solvent. The relatively large downstream are isopropanol, MMA and bisphenol A.
It is reported that the global acetone market is in a situation of oversupply. The Chinese market is the most important destination for the circulation of global goods. At present, China still has a high import volume of acetone, and the domestic supply is also surging.
However, on the demand side, except for the development of bisphenol A, the growth rate of other major downstream production is slow, resulting in the slower demand growth of acetone than the supply growth, and the slower demand growth than the average level in recent five years, which is not conducive to the price rise.
In 2022, with the development of acetone downstream, the proportion of downstream consumption has changed significantly, and bisphenol A and MMA are the most important downstream acetone. The capacity of MMA will increase by 47% in 2022, and the average annual capacity growth will be 25% in 2018-2022. In a certain period of time, the demand for acetone also has a supporting role.
The production capacity of isopropanol in the first downstream has decreased significantly, and the consumption of isopropanol will show a zero growth trend in 2022, with an average annual growth rate of 5% in 2018-2022. However, the isopropanol export market is good. In 2022, the export volume will increase by 62%, driving the domestic output to grow by 9%, and achieving the highest growth in the industrial chain with a gross profit of 188%.