Introduction: In May 2026, China's acetone exports surged to a monthly peak not seen since 2022, with export performance particularly outstanding. According to customs statistics, China's acetone exports in May 2026 reached 11,921.10 tonnes, up 27.71% month-on-month, with an average export price of USD 1,105.96/tonne, up 8.44% month-on-month. This notable increase in export volume was not accidental, but rather the result of changes in the domestic supply-demand landscape resonating with overseas market demand.
From the perspective of export flows, India, Japan, and Mexico were the top three destinations for acetone exports in May. Exports to India were the largest, reaching 4,611.89 tonnes at an average price of USD 1,107.58/tonne; exports to Japan were 3,148.40 tonnes, and to Mexico 2,394.33 tonnes, accounting for 38.69%, 26.41%, and 20.08% respectively, with smaller volumes to other countries and regions. The distribution of these supply flows is closely related to the supply-demand structures of each destination market.
Table: Statistics of China's Acetone Exports in May 2026
| Country/Region | Volume (tonnes) | Value (USD) | Avg. Price (USD/tonne) |
|---|---|---|---|
| India | 4,611.89 | 5,108,043 | 1,107.58 |
| Japan | 3,148.40 | 3,090,979 | 981.76 |
| Mexico | 2,394.33 | 2,749,148 | 1,148.19 |
| Others | 1,766.48 | 2,236,130 | 1,265.87 |
| Total | 11,921.10 | 13,184,300 | 1,105.96 |
Source: Chempricehub
Domestic Supply Loosened Periodically, Export Became a Key Diversion Channel
Looking at the overall domestic market, China's apparent acetone consumption in May was 312,300 tonnes, down 6.74% month-on-month. The data indicates weakening domestic demand. Against the backdrop of supply-demand imbalance, exports gradually became an important way to digest domestic supply.
The domestic acetone market in May first stabilized then declined. In early May, a sharp drop in crude oil led to an overall downturn in the domestic chemical market, dampening spot demand for acetone. In mid-month, port inventories fell to a cyclical low, prompting holders to show price-supporting intentions. Subsequently, the scheduled maintenance shutdown of a phenol-acetone plant at a high-end materials producer tightened spot supply. However, at the end of May, signs of détente emerged in the Middle East situation, international crude oil fell sharply, cost support collapsed, and the acetone market quickly declined. Most players lost confidence in the domestic market, prompting some merchants to actively seek export orders at high price levels to lock in profits.
Looking at the average export price, the May 2026 acetone export average of USD 1,105.19/tonne rose 8.36% month-on-month, higher than the concurrent import average of USD 955.87/tonne. This indicates that China's acetone has certain bargaining power in the export market and is not simply dumped at low prices.
International Supply Gap Indirectly Drove Exports
Since the outbreak of the Middle East conflict, heightened tensions have pushed up crude oil prices. With rising costs, phenol-acetone producers' profit margins have been squeezed, remaining in a loss-making state. At the same time, international spot acetone prices have been continuously lowered in response to the decline in Chinese acetone. Due to tight local supply in certain markets, the need for imported cargoes to arrive gradually to ease the tension created opportunities for Chinese acetone exports.
Strong Demand in India Market Made It the Largest Export Destination for Chinese Acetone
Exports to India reached 4,611.896 tonnes in May, ranking first among all export destinations, highlighting the strong demand from the Indian market for Chinese acetone.
The surge in Indian imports mainly stemmed from two factors. First, affected by the situation in the Strait of Hormuz, upstream propylene was declared under force majeure, leading to feedstock supply disruption. In April, Deepak's plant in India was forced to shut down, creating a supply shortage. This sudden production cut directly caused a market supply gap.
Secondly, to curb prices and ensure raw material supply for downstream industries, the Indian government issued Customs Notification No. 12/2026 on April 2, 2026, reducing the basic customs duty on acetone imports to zero, effective until June 30. The zero-tariff policy significantly lowered import costs, opening the door for overseas supply—especially from major suppliers like China and Thailand—into the Indian market.
With the sharp reduction in domestic supply and the zero-tariff policy stimulus, demand from downstream industries such as pharmaceuticals and coatings remained stable. Under the combined effect of multiple factors, India's acetone imports in May surged significantly.
Industrial Chain Synergy and Downstream Demand Pulled Japanese Acetone Imports Higher
In May 2026, China exported 3,148.40 tonnes of acetone to Japan, ranking second among China's acetone export destinations, reflecting, to varying degrees, Japan's strong demand for Chinese acetone.
The growth in Japan's acetone imports was mainly due to synergistic development along the industry chain. Facing regional oversupply pressure from the rapid capacity expansion of phenol-acetone in Asia, especially China, major Japanese producers are advancing capacity optimization. In January 2025, Mitsui Chemicals and Mitsubishi Chemical jointly studied mutual supply assurance during regular maintenance or equipment failures. This structural adjustment means Japan needs to supplement supply from overseas during certain periods to maintain supply chain stability, and China, with geographic proximity and capacity advantages, has become an important source.
Japan's downstream acetone products, bisphenol A (BPA) and polycarbonate (PC), maintained stable demand. Specifically, the trend toward lightweight automobiles continues to expand the use of PC in headlamp lenses, windows, and interior components, keeping demand strong. The rigid demand from downstream industries, coupled with periodic adjustments in domestic supply, jointly drove the increase in Japan's imports of acetone from China.
In summary, the sharp growth in China's acetone exports in May was the result of multiple factors including periodic domestic supply slack, demand pull from overseas markets, and the continuous expansion of export channels. Looking ahead, with the easing of the Middle East situation and the planned restart of some domestic phenol-acetone units to release output, the supply-demand dynamics in the domestic acetone market remain uncertain. Whether export growth can continue will require close attention to changes in domestic-international price spreads and demand trends in major destinations.
Comments
0