Solvents Storage Demand resurgence
Acetone Storage Demand resurgence
Recent data from The Tank Tiger’s Storage Demand Data indicates a notable uptick in Acetone/Solvents storage demand along the US Gulf Coast. This surge in demand is anticipated to substantially augment inventory levels within the region. As inventories accumulate, there’s a looming possibility of exerting pressure on domestic Acetone prices, potentially altering market dynamics.
The bulk of this escalating storage demand can be attributed to imports, as revealed by The Tank Tiger’s data. Particularly, the majority of these imports originate from the vibrant Asian market, as reported by ICIS. Asia’s acetone market exhibits resilience, poised to sustain its vigor amidst several factors. High prices of benzene coupled with diminished production, leading to tighter supply, and a resurgence in trading flows between Asia and the West collectively fortify Asia’s acetone market.
Asia’s robust acetone market is further fortified by a significant surge in demand from the US market. This escalating demand from the US is a key driver bolstering the prevailing trend. With limited supply in the US, largely due to reduced phenol production and ongoing allocations, the demand for acetone continues to escalate. This confluence of factors could see the continual demand for more imports.
