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South & Central American Acetone Market Forecast 2018-2023

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According to a recently published report about the South & Central American acetone market, it was equal to 165 thousand tons in 2013. The largest country market within the region was Brazil, which in 2013 accounted for a share of 84% of the total in volume terms. Until 2023, the South & Central American market is forecast to reach 149 thousand tons, thus growing at a CAGR of about 1.8% per annum in the period 2018-2023. This is a significant increase, compared to the decline at a CAGR of around 5.1% per year, registered in 2013-2017.

The analytical research projects that the South & Central American production of acetone is likely to stabilize at around 110 thousand tons in the medium term with no major changes. Similar dynamics of the overall installed production capacities and their annual average utilization rates in the region are also expected. In addition, the market is forecast to remain relatively unbalanced in terms of supply and demand, showing moderately mixed dynamics in the medium term.

Acetone is highly dependent on the development of end-use markets such as rubbers and polymers, adhesives, metal cleaning, electronics, printing inks, paints and coatings, automotive, pharmaceuticals, agricultural chemicals, and others. Polycarbonate (a major outlet for bishpenol A) has become one of the most preferred substitute for glass and metals in the automotive industry. Due to the fact that the growing demand for lighter vehicles with enhanced fuel efficiency is propelling the automotive industry, manufacturers tend to rely on polycarbonate that helps reduce the curb weight of the vehicles. In addition to the automotive sector, polycarbonate has driven most of the growth for applications in optical media (CDs and DVDs) as well as the electrical and electronics, such as insulators, connectors, and housings.

Geographically, the acetone’s use for acetone cyanohydrin in North America and Europe is higher than for bisphenol A, while in Asia, the trend is the opposite. In terms of regional development, acetone has been experiencing robust growth in Asia and the Middle East, due to the development of automotive and electronics sector. North America and Europe have also been some of the largest regions in terms of consumption, mainly owing to the increasing demand for electrical & electronic appliances and pharmaceuticals, as well as to the increasing expenditure in innovation in health care and cosmetic products, coupled with growing purchasing power.

Merger and acquisition activity has been robust in the chemical industry during the past few years. Although, the consolidation trend has been stable even in uncertain times, the number of global chemical merger and acquisition deals is decreasing. Particularly on the acetone market, there has been interest in corporate restructurings. In the first half of 2017, Celanese, an US specialty material company and Blackstone, a private equity firm, announced their plan to combine their acetone tow units through a joint venture supplying materials for cigarette filters. However, due to the lack of agreement between the European Commission and the two major market players, both companies have withdrawn the notification of the proposed joint venture from the European Commission.

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