For the Quarter Ending September 2025
North America
• In the USA, the Diacetone Alcohol Price Index fell by 3.5% quarter-over-quarter, reflecting subdued demand.
• The average Diacetone Alcohol price for the quarter was approximately USD 2103.00/MT DEL Louisiana, reflecting range-bound market conditions.
• Diacetone Alcohol Spot Price remained range bound as inventories were adequate despite localized availability constraints recently.
• Diacetone Alcohol Price Forecast shows sideways movement through year-end with limited volatility tied to feedstock.
• Diacetone Alcohol Production Cost Trend was muted as acetone feedstock costs stayed stable this quarter.
• Diacetone Alcohol Demand Outlook points to subdued consumption from construction and coatings constraining upside short-term.
• Diacetone Alcohol Price Index showed modest weakness early quarter before a late September uptick occurrence.
• Producers operated normally with selective inventory drawdowns supporting balanced offers and limited price adjustments recently.
Why did the price of Diacetone Alcohol change in September 2025 in North America?
• Balanced supply and steady inventories limited downward pressure despite soft downstream purchasing and construction weakness.
• Stable acetone feedstock costs constrained production cost increases, contributing to overall price stability through September.
• Logistics remained smooth while tightness at distribution hubs caused localized spot firming late in month.
APAC
• In China, the Diacetone Alcohol Price Index rose by 7.64% quarter-over-quarter, reflecting tighter domestic supply.
• The average Diacetone Alcohol price for the quarter was approximately USD 1752.67/MT, FOB Shanghai benchmark.
• Diacetone Alcohol Spot Price remained range-bound, while the Diacetone Alcohol Price Index reflected limited volatility.
• Diacetone Alcohol Production Cost Trend softened due to stable acetone availability, moderating upward pressure producers.
• Diacetone Alcohol Demand Outlook indicates cautious recovery from paints and adhesives, supporting balanced near-term consumption.
• Diacetone Alcohol Price Forecast suggests mild monthly oscillations, with modest downside risk from elevated inventories.
• Inventory levels and export demand remained sufficient, while selective plant maintenance temporarily tightened spot supplies.
• Major producers maintained steady operations, enabling consistent deliveries despite intermittent port congestion affecting logistics costs.
Why did the price of Diacetone Alcohol change in September 2025 in APAC?
• Balanced domestic production amid limited export inquiries kept supply adequate, preventing sharp price appreciation pressure.
• Stable acetone feedstock costs and easing port congestion reduced production cost volatility and logistic premium.
• Downstream demand recovery was modest, with coatings and adhesives maintaining cautious procurement patterns, limiting upside.
Europe
• In Germany, the Diacetone Alcohol Price Index fell by quarter-over-quarter, reflecting weaker coatings sector demand.
• Diacetone Alcohol Spot Price showed mild weakness as suppliers adjusted offers amid sluggish downstream restocking activity.
• Diacetone Alcohol Production Cost Trend remained steady with balanced acetone availability, moderating cost-related pressures.
• Diacetone Alcohol Demand Outlook was subdued as slower recovery in architectural coatings and adhesives weighed on offtake.
• Diacetone Alcohol Price Forecast points to limited near-term upside, with seasonal slowdown likely restricting demand momentum.
• Inventories across distributors stayed comfortable, while export inquiries from Eastern Europe provided intermittent support.
• Producer discipline and stable feedstock costs curbed volatility, maintaining a narrowly range-bound pricing environment overall.
Why did the price of Diacetone Alcohol change in September 2025 in Europe?
• Weak coatings and adhesives consumption weighed on overall DAA demand, limiting price improvement across the region.
• Stable acetone costs maintained steady production economics, reducing cost-driven price fluctuations.
• Export flows to Eastern Europe and balanced inventories prevented a sharper decline despite soft domestic industrial activity.
For the Quarter Ending June 2025
North America
• The Diacetone Alcohol (DAA) market in North America trended steadily weaker through Q2 2025, with prices stagnating in April before declining into May and stabilizing by June, as muted construction-linked demand and ample inventories offset steady feedstock costs.
• In April, prices held flat in USA, as balanced supply-demand conditions and adequate domestic inventories prevented volatility. Despite improving weather and logistical recovery, weak housing confidence and high construction costs weighed on downstream coatings and adhesives demand, prompting buyers to limit procurement to immediate needs.
• In May, prices slipped as soft coatings and solvent demand, coupled with comfortable stock levels, forced sellers to lower offers despite steady acetone costs. Residential construction slowed further due to high interest rates and deflationary pressures, while port congestion contributed to stock build-ups, reinforcing bearish sentiment.
• By June, prices steadied, as balanced supply and flat feedstock acetone costs countered weak end-use pull. Regulatory uncertainty and persistent housing market weakness kept buyer sentiment cautious, with procurement largely confined to spot coverage.
• Across Q2, North American DAA markets reflected oversupplied fundamentals, soft construction-driven demand, and minimal cost pressure, with stability emerging only as sellers matched output closely to muted buying interest.
Why did the price of DAA remain stable in July 2025 in North America?
• In July, the Diacetone Alcohol (DAA) Price Index in North America remained stable, as consistent feedstock availability and sufficient inventory balanced with subdued demand from coatings and construction sectors.
• The Diacetone Alcohol Production Cost Trend stayed steady, with no significant disruptions to Gulf Coast petrochemical supply chains despite the ongoing hurricane season, allowing production and distribution to continue without volatility.
• Weak domestic and export demand—pressured by a seventh consecutive monthly decline in U.S. construction spending and reduced overseas buying interest due to reciprocal tariffs—kept spot activity limited, holding prices flat.
Asia
• The Diacetone Alcohol (DAA) market in Asia trended mixed-to-firm through Q2 2025, balancing steady domestic demand, logistical disruptions, and uneven downstream recovery.
• In April, prices eased in China as sufficient inventories and stable feedstock acetone costs lowered production pressure, prompting sellers to reduce offers to sustain sales. Weak overseas inquiries and severe congestion at Shanghai, Ningbo, and Bohai ports led to stock buildups, while construction demand stayed moderate, keeping trading spot-focused.
• In May, prices rebounded modestly, supported by disciplined output, firm formaldehyde and acetone availability, and stronger demand from civil engineering projects tied to high-tech infrastructure. Despite falling acetone prices, logistical delays and tighter near-term supply allowed sellers to maintain firmer offers even as export interest lagged.
• In June, prices rose further as prolonged port congestion increased shipping costs, prompting traders to lift offers. Domestic demand held steady, but overseas interest weakened, while a sharp housing downturn and broader trade uncertainties capped construction-related offtake.
• Throughout Q2, Asian DAA prices remained firm despite muted macroeconomic conditions, with supply discipline, steady domestic consumption, and logistics-driven tightness offsetting export softness and uneven construction recovery.
Why did the price of DAA remain stable in July 2025 in Asia?
• In July, the DAA Price Index in Asia remained stable, as steady feedstock availability and consistent plant operations balanced with uneven demand, keeping the FOB Shanghai price flat.
• The Diacetone Alcohol Production Cost Trend stayed unchanged, with no major input or utility disruptions, while persistent port congestion at major Chinese coastal hubs caused shipment delays but did not create oversupply.
• Limited overseas inquiries and only modest domestic consumption growth—driven by public infrastructure projects but offset by weather-related disruptions in construction—kept spot activity subdued, holding prices stagnant.
Europe
• The Diacetone Alcohol (DAA) market in Europe trended steadily bearish through Q2 2025, as weak cost support from acetone and sluggish demand from coatings, adhesives, and construction-linked industries drove persistent price declines.
• In April, prices edged up marginally, but the gain was limited as subdued coatings and adhesive demand—tied to Germany’s weakening construction sector—kept procurement cautious. Residential, commercial, and infrastructure activity remained soft, with new project starts continuing to decline, curbing broader DAA consumption despite stable acetone costs.
• In May, prices fell as bearish fundamentals deepened. Downstream coatings and solvent sectors faced prolonged weakness amid a 0.3% drop in Eurozone chemical output and persistent erosion in construction demand. Spot sales dominated as buyers avoided forward commitments, while port congestion in Hamburg further slowed export activity and inflated local inventories.
• By June, prices plunged as housing and commercial construction contracted sharply across Germany, suppressing coatings and adhesives offtake. Adequate inventories, flat acetone costs, and weak cross-border orders kept transactional volumes thin despite sellers scaling back output.
• Across Q2, European DAA markets were driven lower by tepid demand, high inventory levels, and flat cost inputs, with construction-led weakness and trade bottlenecks amplifying the bearish trajectory.
Why did the price of DAA change in July 2025 in Europe?
• In July, DAA Price Index in Europe declined as weak demand from coatings and construction sectors coincided with a bearish feedstock acetone market.
• The Diacetone Alcohol Production Cost Trend softened, with lower acetone prices—pressured by subdued industrial sentiment, structural oversupply, and cautious purchasing—allowing sellers to reduce offers amid thinning margins.
• Limited downstream activity, excess inventories, and persistent macroeconomic uncertainty across European economies kept spot transactions light, reinforcing a downward trajectory for DAA prices.
For the Quarter Ending March 2025
North America
During the first quarter of 2025, the U.S. Diacetone Alcohol market experienced a consistent upward trend in prices with the quarter ending prices standing at USD 2353/MT on month-on-month basis, primarily driven by significant supply-side constraints. Extended periods of freezing temperatures across major production hubs disrupted manufacturing activities, resulting in operational slowdowns and logistical setbacks. These adverse weather conditions significantly reduced DAA output and strained supply chains, leading to tight market availability.
Compounding the domestic supply issues, import volumes provided limited relief, as international shipments continued to face delays due to persistent global logistical bottlenecks. These factors collectively intensified the supply pressure within the U.S. market. On the demand side, activity from the construction sector, the key downstream consumer of DAA for applications in coatings, resins, and adhesives—remained stable.
According to official data, U.S. construction spending increased by 2.9% year-on-year in February, with private construction investment rising 0.9% and residential construction advancing 1.3%, including a 1.0% increase in spending on new single-family housing. The combination of resilient demand, constrained supply, and elevated production costs contributed to sustained price escalation across the market throughout the quarter.
APAC
During the first quarter of 2025, the Asian Diacetone Alcohol (DAA) market displayed divergent regional trends, with China and India experiencing notably different pricing dynamics. In China, DAA prices surged significantly, with the quarter-ending price reaching approximately USD 1610/MT, marking a strong month-on-month increase. This upward momentum was primarily driven by a persistent supply-demand imbalance. A key factor contributing to the supply shortage was the extended shutdown of Sinopec Beijing Yanshan Petrochemical, a major domestic producer, which has remained non-operational since late 2024. The constrained availability of feedstock further exacerbated the tight supply situation. On the demand front, while domestic consumption was steady, international interest in Chinese DAA remained modest, supported by optimistic projections for substantial investment in the country’s construction sector, which in turn bolstered market sentiment. In contrast, the Indian market witnessed relatively subdued pricing throughout the quarter. Despite moderate inquiries from downstream industries, DAA prices remained at the lower end. Traders in India reportedly kept offers competitive in an attempt to stimulate demand and attract higher purchase volumes, thereby preventing any significant price escalation.
Europe
During the first quarter of 2025, the European Diacetone Alcohol (DAA) market experienced considerable price volatility, with Germany emerging as one of the most significantly affected regions. In the early part of the quarter, DAA prices declined, primarily due to subdued demand from the construction sector, a major downstream consumer of DAA, particularly in the production of paints, coatings, and resins. Germany’s construction industry continued to grapple with structural challenges, including elevated financing costs, a persistent shortage of skilled labor, and administrative inefficiencies. These issues dampened construction activity across the country, leading to reduced demand for construction materials, including DAA. However, as the quarter progressed, the market witnessed a shift in sentiment. Despite continued headwinds, DAA prices began to rise in the latter half of the quarter. This reversal was supported by tightening supply conditions and modest restocking activity among downstream consumers. Consequently, the European DAA market closed the quarter on a firmer note, reflecting a recovery in pricing momentum amid lingering uncertainties in the construction sector.
For the Quarter Ending December 2024
North America
The North American Diacetone Alcohol (DAA) market experienced a notable price surge during the final quarter of 2024. This upward price movement can be attributed to a combination of factors, including a shortage of domestically produced material and strong demand from the downstream paints and coatings industry.
In the initial months of the quarter, production in the region was hampered by adverse weather conditions, including hurricanes and heavy downpours, which led to frequent power outages and disruptions. However, as the quarter progressed, the supply situation began to ease, allowing for a stabilization in production levels.
On the demand side, purchasing activity from the downstream construction sector remained relatively modest. Data from the U.S. construction market revealed a 0% change in construction spending in November 2024 compared to the previous month, following an increase in October. This subdued demand from construction, combined with supply constraints, contributed to the price surge in the DAA market, though growth was tempered by slower expansion in certain sectors.
Asia-Pacific
The Asian Diacetone Alcohol (DAA) market experienced bullish price trends during the final quarter of 2024, primarily driven by firm demand in the Chinese market. Demand for DAA remained moderately steady, with the paints and coatings sector, a key end-user industry, showing mixed performance. This limited the overall market recovery, as the sector's consumption fluctuated during the quarter. China's economic growth for 2024 stood at 5%, meeting government targets; however, this growth was uneven, as many citizens reported declining living standards. This highlighted Beijing's challenges in distributing industrial and export gains to domestic consumers. The Real estate sector data showed some stabilization, with December’s 70-city property price index revealing slower declines in home prices. New home prices dropped by 0.08%, and existing home prices fell by 0.31%, marking the fourth consecutive month of moderated declines. The surplus availability of DAA was further exacerbated by global port congestion and ongoing trade uncertainties, which disrupted supply chains and contributed to market volatility.
Europe
The European Diacetone Alcohol (DAA) market remained stable with only minor fluctuations during the final quarter of 2024. Demand from the key downstream construction sector remained subdued, particularly as Germany, one of Europe's largest construction markets, experienced a deeper downturn in October, November, and December. This downturn was reflected in a decline in both activity and new orders, driven by broader economic pressures and reduced investment in construction projects across the region. The muted demand from the construction industry contributed to the lack of upward momentum in DAA prices, which remained relatively stable throughout the quarter. Market participants reported that construction activity in December 2024 faced significant challenges. Despite slight increases in some construction activity indexes, they remained well below growth levels, marking several months of contraction. Housing activity saw its sharpest decline since September, while the commercial and civil engineering sectors showed slower but still negative growth. Germany and France continued to face difficulties, with France reporting its most significant contraction since April, leading to notable job cuts in the sector.
