Acetone market has undergone notable fluctuations between 2024 and 2026, driven by changing demand dynamics, feedstock price movements, and capacity expansion initiatives. As a widely used industrial solvent, acetone plays a crucial role in the production of paints and coatings, pharmaceuticals, plastics, and intermediates such as isopropanol (IPA) and diacetone alcohol (DAA), making its pricing highly sensitive to downstream consumption trends.
One of the key trends observed in 2025 is price volatility linked to weak downstream demand. In November 2025, acetone prices in the Indian market declined by approximately ₹2–3/kg, with offers falling to around ₹59–60/kg across major ports. This decline was primarily attributed to reduced demand from coatings, IPA, and DAA segments, coupled with steady domestic production and consistent import volumes, which collectively created a supply surplus. Additionally, soft feedstock prices, particularly benzene and propylene across Asian markets, further contributed to bearish market sentiment and downward pricing pressure.
Earlier in 2025, however, the market experienced short-term bullish trends. In April 2025, acetone prices rose by about ₹1/kg, reaching approximately ₹75/kg levels in key trading hubs such as Kandla, Mumbai, and Dahej. This increase was driven by tight domestic supply, limited inventories at ports, and reduced production levels by major manufacturers, which temporarily constrained availability. Strong demand from paints, coatings, and pharmaceutical sectors also supported this upward price movement. However, the bullish sentiment was not sustained, as subsequent corrections in feedstock costs and weakening downstream demand led to price adjustments later in the year.
From a supply-side perspective, a major structural development was announced in April 2025 by Deepak Chem Tech Limited, a subsidiary of Deepak Nitrite Limited. The company approved a large-scale investment to establish new production capacities, including 185 KTA (kilotons per annum) of acetone, alongside phenol and isopropyl alcohol facilities. This project, with an estimated investment of ₹3,500 crores, is part of a broader strategy to create an integrated petrochemical value chain, including downstream polycarbonate resin production. Such expansions are expected to significantly enhance domestic supply capacity and reduce reliance on imports over the long term.
Despite short-term demand challenges, the market outlook remains cautiously optimistic. The pharmaceutical sector is expected to provide partial support to demand, particularly during peak API production cycles in December–January. This seasonal demand recovery may help stabilize prices in the near term, even as other sectors such as paints and coatings remain subdued.
Overall, the Acetone market is characterized by cyclical price movements, evolving supply dynamics, and strategic capacity expansion. While short-term pressures from weak demand and soft feedstock prices persist, long-term growth is expected to be supported by industrial expansion, increased domestic production, and recovery in key end-use sectors.
