In May 2025, the worldwide Diacetone Alcohol (DAA) market showed a diverse pattern of price trend across key regions—China, India, and the United States. The market remained mainly under pressure with prices fluctuating region wise throughout the month. Such heterogenous pricing behavior was primarily influenced by different regional factors like holidays, port bottlenecks, and changes in downstream sector activity. However, the feedstock material Acetone remained easily available throughout the month globally prompting towards stable production.

For the Chinese market, DAA prices were flat initially, even with the Labor Day holidays, a time usually characterized by disruptions in logistics and trading activity—DAA pricing was unchanged because of balanced market fundamentals. Production operations were smooth prior to the holiday to ensure adequate inventories.  However, as the month progressed the prices began to fluctuate and moved northwards. As a ripple effect the Chinese market reported a 2% month-on-month increase for the FOB price of Diacetone Alcohol (DAA) (FOB- Shanghai). On the demand side, throughout the review period, the purchasing activity from downstream industries like construction continued to be seasonally moderate. Although transaction volumes temporarily declined amidst frequent policy changes in the international market, particularly regarding the import tariffs. This slowdown in the DAA market was anticipated and is expected to be managed efficiently in the near term, preventing any significant impact on the market.

In the Indian market, DAA prices saw minimal week-on-week movement but showed a meager hike of around 2% on a month-on-month basis. This relatively calm performance was mainly anchored by steady demand from major downstream markets such as coatings, adhesives, and especially construction, which witnessed moderate activity in the wake of weakening inflationary pressures. Feedstock Acetone prices were steady over the period, providing more cost support for DAA pricing. On the demand side, the real estate sector provided mixed signals: while the commercial and luxury segments showed healthy performance, the affordable housing sector continued to trail behind, which indicated selective strength in the overall construction landscape.

In the North American market, the DAA industry continued to be under pressure downward, primarily owing to weak demand from the principal construction sector. The downstream construction industry performance varied during the period. Based on market research, April 2025 pending home sales fell in all major U.S. regions, which may indicate decelerating residential construction activity. In addition, homebuilders' sentiment declined significantly in May 2025 due to continued high interest rates and prevailing economic uncertainty. These factors cumulatively led to a subdued demand scenario for DAA in the region.

As per the ChemAnalyst analysis, the price of DAA is expected to fluctuate in the near term, with the prices expected to move northwards. This bump in the DAA price trend is anticipated amidst the expected seasonal demand from the prominent end-user construction sector during the summer season.