Diacetone Alcohol Prices Remain Stable in the US Market Amidst Gloomy Demand
- 28-Nov-2023 4:15 PM
- Journalist: Peter Schmidt
In November 2023, the Diacetone Alcohol market in the United States experienced price stability, primarily driven by a lack of significant orders from both domestic and overseas markets. The overseas inquiries remained stagnant, contributing to an accumulation of product stock within the domestic market in the US. The price of Diacetone Alcohol was recorded at USD 2150/MT on a FOB Texas basis during the week ending November 24, 2023, reflecting the current market valuation for Diacetone Alcohol.
Enterprises in the US market adopted a strategy of focusing on existing stock levels, leading to a decrease in fresh orders from potential customers. This approach was influenced by a cautious outlook and a desire to manage inventory effectively. Furthermore, Diacetone Alcohol manufacturers in the US responded to the decreased demand from downstream solvent industries by scaling back their purchases of raw materials. This adjustment reflects a proactive response to market conditions, aligning production with the subdued demand.
Merchants in the US market displayed reluctance to stockpile Diacetone Alcohol during this period, especially as the year-end approached. This hesitancy was likely influenced by the typical year-end considerations and a desire to manage procurement activities in light of the approaching year-end dynamics. Overall, the combination of limited orders, reduced raw material purchases, and cautious inventory management shaped the stability of Diacetone Alcohol prices in the US market during November 2023.
In November, there were notable improvements in the performance of vendors reported by goods producers, with lead times for input materials showing a reduction. However, in response to enhanced supply chains, relatively subdued demand, and a focus on cost-cutting, businesses continued to diminish their inventories of purchased raw materials and finished goods.
Simultaneously, manufacturers recorded consecutive declines in their workforce numbers. Businesses commonly cited factors such as subdued demand and increased cost pressures as driving forces behind reducing staff. This trend indicates a response to the challenging economic conditions faced by entities.
Anticipated in the upcoming month is a potential weakening in the price of Diacetone Alcohol. This projection is based on manufacturers destocking the material at an affordable price as part of year-end practices. Additionally, there is an expected decline in inquiries for Diacetone Alcohol from the overseas market due to supply disruptions in the Panama Canal. The demand for Diacetone Alcohol from downstream solvents, paint, and coating sectors is anticipated to decrease, influenced by a potential reduction in buying sentiments during winter.