Rising acetone capacity will bring long-term price relief.

Purchasing | November 15, 2007| | Copyright

By Gordon Graff

Buyers of acetone in North America are finding supplies relatively tight and prices substantially higher than they were at the beginning of the year due primarily to an unusual combination of plant shutdowns and delayed expansions that have put a crimp in the acetone supply chain. But as expected new acetone capacity comes on-stream and disruptions are cleared up, acetone prices should retreat during 2008. But industry observers caution that these declines will be modest. The main reason: propylene, a key acetone feedstock, will continue to remain ...

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