As we enter in the May 2025, Acetaldehyde prices in Asia specifically in India continued to gain upward momentum. The surge in prices was largely due to the strengthening demand amid tightening supplies in the Acetaldehyde market. This led to a situation triggering intense spot activity where buyers actively stocked up in view of limited supplies. Furthermore the market sentiment remained optimistic with steady consumption across both construction and automotive sectors.

The demand for Acetaldehyde was considerably influenced by the automotive market's performance. As automotive production rose so did the need for various paints and coatings which directly boosted the consumption of Acetaldehyde. Major automotive manufacturers like Mahindra reported a remarkable sales growth of 28 percent in the domestic market in April 2025 as compared to the previous year.

The entire auto industry displayed strong activity as Maruti Suzuki continued to lead in sales In April 2025. On the other hand, Mahindra’s impressive sales numbers alongside Tata’s slight decline showcased a shift where consumers were gravitating towards different automotive segments. With Mahindra's strategy focusing on SUVs and Hyundai’s concentration on crossovers there's an evolving landscape in the auto sector that is fostering greater demand for Acetaldehyde.

Further in the construction sector there was a notable increase consumption of Acetaldehyde. According to projections by ICRA construction industry in India is expected to experience a strong revenue growth of 12-15 percent in FY2025 following an impressive rise of 18-20% in the previous year. This consistent growth was largely supported by increased government capital expenditure which for FY2025 stands at Rs 11.1 trillion. Such developments ensured a stable demand for Acetaldehyde which is primarily used in the production of PVA (polyvinyl acetate) and PVOH (polyvinyl alcohol) which remained essential materials in adhesives and coatings sector. Acetaldehyde contributed to base coats primers and clear coatings as well as corrosion-resistant coatings for metal parts highlighting its versatility in the construction sector.

Turning to Spain Acetaldehyde prices for food-grade quality were associated with the FMCG sector which has witnessed improvements in consumer sentiment. The Thomson Reuters IPSOS index for Spain indicated an increase to 48.90 in April 2025 reflecting growing confidence among consumers. As consumer sentiment rose it led to increased spending in the FMCG sector further boosting demand for Acetaldehyde in food products and related applications primarily for its role in flavor and fragrance manufacturing, preservative functions. Consequently, the prices of Acetaldehyde Food Grade CFR Barcelona rose by 0.7% settling higher at USD 1490/MT in the week ending 2^nd May.

Looking ahead, the pricing trend for Acetaldehyde in India and Spain is projected to remain bullish due to continued growth in demand from both automotive and construction sectors alongside a recovering FMCG market in Spain.