Diacetone Alcohol Prices Hold Steady Amid Global Market Balances

Diacetone Alcohol Prices Hold Steady Amid Global Market Balances

Timothy Greene 28-Jul-2025

Diacetone Alcohol (DAA) prices stayed flat in major global markets such as India, China, and the United States during the first half of July, maintaining a trend of stability observed during the preceding weeks. DAAprices were firm because of a continued balance between demand and supply.

In India, the price stability was fuelled by a mix of consistent feedstock supply, uninterrupted production, and sufficient inventories. Local demand was weak, with monsoon-related construction slowdowns dampening the usage of DAA, commonly used in coatings and building materials. The stronger monsoon period, which started earlier than expected in June, disrupted infrastructure activity throughout July. Despite lacklustre downstream activity, producers had no constraints on production, aided by adequate raw materials and healthy operating rates managed by operating units. Even with port backlog inducing temporary shipping glitches, excess inventories maintained steady market supply, keeping prices stable.

In China as well, the same trend was seen. DAA production remained at steady levels, and producers operated regularly under safe access to feedstock. Outbound shipments were delayed by logistical bottlenecks at coastal ports, leading to short-term buildups in inventories. Nevertheless, the excess was under control, and producers indicated no oversupply issues. On the consumption side, domestic consumption registered modest signs of revival supported by public works and industrial schemes. Nonetheless, overseas inquiries continued to be sparse, and sporadic rain dulled pace in the coatings and building sectors. Consequently, despite modest gains in domestic demand, prices of DAA stayed firm.

At the same time, America’s DAA market also registered flat prices, influenced by a steady supply environment and still-weak demand. Factories went on uninterrupted production, even during possible threats posed by the Atlantic hurricane season. Supplies stayed adequate, and despite fears of port and transport difficulties, delivery ran smoothly. Demand continued under the hammer. The U.S. construction industry—a significant DAA consumer—experienced its seventh consecutive month of spending decreases in June, with early July data showing the trend to continue. Furthermore, additional retaliatory tariffs on U.S. exports also limited foreign demand, maintaining low export volumes.

As per the analysis made by ChemAnalyst looking ahead, market participants remain watchful. While DAA demand is expected to recover moderately post-monsoon, near-term sentiment is expected to stay muted unless broader construction activity and economic indicators show signs of sustained improvement. Until then, the DAA market may continue to experience soft pricing and cautious trading behaviour.

According to the outlook prepared by ChemAnalyst, industry players are still on their guard. Although there is a good chance of rebounding demand during the post-monsoon period, near-term sentiment is likely to remain subdued unless there are signs of sustained turnaround in the overall construction activity and the overall economy. Until such time, the DAA market might witness soft pricing and risk-averse trading behaviour.

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