Posts | Comments

The CIS Countries’ Acetone Market Is Forecast to Grow at a CAGR of 0.5% Per Year in 2018-2023

Contact Us
Williams & Marshall Strategy
Hill Tower Center, 76A, James Boucher blvd., 1407
Phone:+359 888 82 99 12

According to a recently published report about the CIS Countries’ acetone market, it was equal to 136 thousand tons in 2013. The largest country market within the region was the Russian Federation, which in 2013 accounted for a share of 85% of the total in volume terms. Until 2023, the CIS Countries’ market is forecast to reach 102 thousand tons, thus growing at a CAGR of about 0.5% per annum in the period 2018-2023. This is a significant increase, compared to the decline at a CAGR of around 7.6% per year, registered in 2013-2017.

The analytical research projects that the CIS Countries’ production of acetone is likely to drop to around 150 thousand tons in the medium term. Upwards dynamics of the overall installed production capacities in the region are expected, while their annual average utilization rates, on the other hand, are expected to decline. In addition, the market is forecast to remain relatively unbalanced in terms of supply and demand, also showing moderately downward 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.

Leave a Reply