For the Quarter Ending March 2023
North America
The price of Diacetone Alcohol showed an incline trend in the US market throughout the first quarter of 2023. The high-cost pressure from feedstock Acetone and severe winter weather from some parts of the US affected the petrochemical commodities. In order to manage regional inflation, the US Federal Reserve (Fed) increased the interest rate by 25 basis points, marking the eighth increase in a row since March 2022. The demand for Diacetone Alcohol remained stable, and the merchants bought the product on a need basis. The cost of the product settled at USD 2008/MT on a FOB Texas at the end of the quarter.
APAC
The price of Diacetone Alcohol showed an increased trend in the Asian market throughout the first quarter of 2023. After the Lunar holidays, the cost of DAA saw an upward tick due to high inquiries, and the price of feedstock Acetone rose in the Chinese market. Feedstock Acetone prices inclined in China due to amid increase in the market trading activities after the spring day festival because of an increase in demand from the downstream industries and the availability of stable product inventory levels in the market. On the other hand, India has also followed the same price pattern throughout the quarter. The cost of the product settled at USD 1242/MT on an Ex-Mumbai at the end of the quarter.
Europe
The price of Diacetone Alcohol fell in Europe throughout the first quarter of 2023 due to consistent supply and sufficient availability in the market. The construction and coating industry had little demand for DAA, and the majority of the downstream procurement was based on demand. High-interest rates and other relevant factors hampered the downstream coating and construction industries in the European region. The global economy's sluggish performance dampens German exports, and high inflation rates dampen consumer spending and construction activity by reducing purchasing power and significantly increasing financing costs.
For the Quarter Ending December 2022
North America
The price of Diacetone Alcohol decreased in North America during the fourth quarter of 2022. The weak-cost pressure from the feedstock Acetone in the US market supported the downstream derivative industries, including Diacetone Alcohol. The demand from the paints & coating industries was average in the region. The product's price decreased due to the steady supply in the market and the manufacturers' high inventory. The product was kept in stock by merchants because of its high availability. Orders decreased in December, and traders were selling the product at the discounted offer price due to year-end destocking. The cost of Diacetone Alcohol hovered around USD 1945/MT on a FOB Texas basis, with a decline of 13% during December 2022.
APAC
The price of Diacetone Alcohol witnessed a downward price trajectory throughout Q4 2022. The end-use paints & coating sector showed poor demand in the Chinese market due to weak market sentiment. Trading and industrial activities were affected due to the Chinese government's zero COVID restriction, and companies also reduced production rates due to low demand. India also followed the same price trend due to weak demand from the downstream industries. Due to year-end, traders sold the product at a discounted offer price to destock the material. The cost of Diacetone Alcohol hovered around USD 1620/MT on a FOB Shanghai basis during December 2022.
Europe
The price of Diacetone Alcohol witnessed a falling price trend throughout the Q4 of 2022. The weak demand from the downstream industries like paints & coatings decreased the cost of the product. Due to high inflation and the natural gas crisis in the Europe region further declined the demand from the end-use industries. Due to Europe's slow economy, consumers were reluctant to purchase the product. The Diacetone Alcohol market in the Eurozone displayed a negative price trend in December as the holidays drew nearer. As a result, buyers reduced the number of orders they placed.
For the Quarter Ending September 2022
North America
In Q3 2022, the prices of Diacetone Alcohol declined in the North American market, with prices ranging from USD2497/MT in the USA during September. Domestic traders offered price cuts at the beginning of the Quarter due to high availability in the market. Due to weak consumer buying trends, downstream manufacturers witnessed low demand from the paints and consumer coatings industry. The feedstock Acetone dropped in the market due to the continued decline in global oil prices as recession fears and supply shortage worries battled the price of Diacetone Alcohol decreased by 6% in Q3.
APAC
During the third Quarter of 2022, the price of Diacetone Alcohol witnessed a downward trajectory due to feedstock Acetone price fluctuation in Asia. Weak demand from the downstream industries like coating and other solvent manufacturing sectors in the market. The manufacturers decreased the cost in the quotations due to high product availability in the market. With global trade disputes, freight rates in Asia were falling. On the supply side, there is an abundance of goods on-site, high inventory, but weak market demand. The buyers’ have a heavy wait-and-see mood due to stagnant market sentiments. As a ripple effect, the cost of Diacetone Alcohol decreased by 11% during the quarter ending.
Europe
The market sentiments for Diacetone Alcohol witnessed a downward trajectory due to weak cost pressure from feedstock Acetone across Europe during the third Quarter of 2022. The lowered freight charges were due to poor purchasing orders from the consumers. In terms of supply, the high inventory from the traders and adequate availability of products constrained the price of Diacetone Alcohol. Due to increased natural gas prices and additional utility costs in the European region, consumers were hesitant to purchase the product, and a bearish trend occurred in Europe. The manufacturers quoted lower price in quotation due to high availability in the market.
For the Quarter Ending June 2022
North America
In the North American region, in the second quarter of 2022, Diacetone Alcohol price has been observed to fluctuate. The upstream Acetone first rose and fell at the end of the quarter due to the volatility in crude oil prices internationally. The upstream cost pressure influenced the downstream Diacetone Alcohol in the US market. The healthy demand from downstream paints, coatings, textiles, medical products, automotive, etc. The growing use of Diacetone Alcohol as a chemical intermediate in producing other chemicals drives the market. However, in June, the raw material price dropped, and buying sentiments for the product plunged in the region.
Asia-Pacific
In the second quarter of 2022, the market sentiments for Diacetone Alcohol fluctuated in the Asian region. In China, the Acetone price rose due to the crude oil price fluctuation, and the shutdown of the Yangzhou Shiyou plant after May Day affected the downstream commodities in the region. The demand from the downstream industries like paints & coatings remained high due to the development of infrastructural activities, supporting the upward trajectory of price in the region. In India, the Diacetone Alcohol price rises at the beginning of the quarter and continues to fall at the end of the quarter due to the poor demand from downstream derivative industries. The percentage of Diacetone Alcohol was settled in June with a monthly declination of 3% during the quarter.
Europe
During the second quarter of 2022, Diacetone Alcohol witnessed an upward trajectory throughout the European region. The upstream feedstock Acetone increased due to the fluctuating crude oil prices. Due to the war between Russia and Ukraine, a potential loss in supply chain disruptions in the region. The sanctions on Russia's crude and natural gas import have inflicted the upstream commodities, influencing the downstream industries. EU refineries have started to buy crude oil from far-fields like Abhu Dhabi and Angola after a ban on Russian imports. A tightened product supply due to the maintenance turnaround of the shell oil refineries forced the suppliers to stick to their pricing. This shortage in raw materials affected downstream industries like Diacetone Alcohol.
For the Quarter Ending March 2022
North America
In North America, prices of Diacetone Alcohol climbed up in the first quarter as the demand has been improving from downstream paints and coatings market. Diacetone Alcohol prices were assessed around USD 2300/ton FOB New York in the first quarter of 2022. Diacetone Alcohol prices observed an uprise during the third quarter of 2021, backed by the scarcity of feedstock Acetone as well as strong and sturdy demand from downstream industries, including paints and coatings, textile, agrochemicals, etc. Moreover, fluctuations in the crude oil values also supported the pricing trend of DAA in the US market. The consistent firmness in feedstock Acetone prices further pushed up Diacetone Alcohol prices in the first quarter.
Asia Pacific
During Q1 2022, the prices of Diacetone Alcohol increased in the Asian countries where China observed the price to be hovering around USD 2020/ton- USD 2158/ton FOB Shanghai in the month of February and cost USD 2165/ton FOB Shanghai at the end of the first quarter. The prices increased around 2.8% in the first quarter as compared to Q4 of 2022. However, the demand for the product remained significantly firm from the domestic downstream cosmetics, paints and coatings sectors, thereby supporting the upward price trajectory.
Europe
Europe saw an increase in the price of Diacetone Alcohol in Q1 of 2022 with prices ranging around USD 2300/ton as the European market experienced an uprise in the value of Diacetone Alcohol backed by the tightened supply of feedstock Acetone. Additionally, production curtailments due to acute energy crisis in Europe led to product scarcity. Moreover, strong upstream values of raw material and exorbitant freight charges also sent ripples to Diacetone Alcohol values in this quarter. In addition, premium on shipping containers also added an extra value over the imported Diacetone Alcohol cargoes during the first quarter.
For the Quarter Ending December 2021
North America
In the North American region, Diacetone Alcohol prices experienced an uprise during the third quarter of 2021 backed by the scarcity of feedstock acetone and firm demand from downstream industries including Paints and Coatings, Textile, Agrochemicals etc. Moreover, volatility in the crude oil values also supported the pricing trend of DAA in the US market. However, in the last month of the quarter, DAA prices eased due to the lower buying sentiments and lull trade activities as traders were not interested in stocking piles due to year end.
Asia
Asian market registered a downward trajectory in the prices of Diacetone Alcohol due to ample inventories and stable to narrow demand from the major end-use industries such as Paints and Coatings. In China, DAA market sentiments remained dull and during this period, inadequate buying activities and significant interest in export was witnessed in China that compelled the exporters to revise their product prices at a lower cost. In India, DAA prices experienced fluctuations depending upon the demand outlook coupled with feedstock values. An impressive demand outlook of Diacetone Alcohol was observed in November due to festive season. However, a significant fall of 6% was seen in DAA cost in December due to lull trade and dampened buying momentum. Hence, Ex-Mumbai Diacetone Alcohol monthly average prices assessed at USD 1807.86/MT in December.
Europe
During the third quarter, the European market experienced an uprise in the value of Diacetone Alcohol backed by the tightened supply of feedstock Acetone. Additionally, production curtailments due to acute energy crisis in Europe led to the product scarcity as the demand was firm from both domestic and Overseas markets that resulted in price hikes. Moreover, strong upstream values and exorbitant freight charges also sent ripples to Diacetone values in this quarter. However, in the last month of the quarter relaxation in DAA prices was witnessed as traders were in a hurry to finish their inventories due to year end, keeping the values low.
For the Quarter Ending September 2021
North America
In North America, Diacetone Alcohol market showcased mixed sentiments during Q3. In the first half of the quarter, prices of Diacetone Alcohol dropped due to heavy production activities in US coupled with the improvement in the supply of feedstock Acetone. However, in the latter half, an unprecedented rise in the prices of Diacetone Alcohol was seen backed by the arrival of Ida hurricane in the Gulf Coast Of the USA. The situation caused disruption of the production activities at several petrochemical refineries across the region that resulted into scarcity of the feedstock Acetone. Thus, sturdy demand for Diacetone Alcohol from its downstream sectors along with the hike in the prices of Acetone in the latter half resulting in the marginal hike in the values of DAP in September 2021.
Asia
In Asia, the Diacetone Alcohol market outlook varied from country to country during the third quarter of 2021. In China, a marginal surge in the prices of Diacetone Alcohol was witnessed because of the soaring feedstock Acetone prices along with the fluctuated demand ranging from low to stable in the region. In India, Diacetone Alcohol market outlook showcased mixed sentiments supported by the volatility in the demand from downstream sectors. In the first half, owing to the improved production rates and sufficient supply of raw materials, fall in the values of Diacetone Alcohol was seen in August. However, in September Diacetone Alcohol prices reported a slight hike in India due to spike in the freight charges and unavailability of shipping containers. Ex-Kandla monthly average prices of Diacetone Alcohol were accessed at USD 1504.82 per in September showcasing an overall marginal difference since July.
Europe
In Europe, Diacetone Alcohol market showcased mixed sentiments during the third quarter of 2021. A plunge in the demand for Diacetone Alcohol was reported due to low offtakes from the local market. Prices of Diacetone alcohol witnessed downward trend at the beginning of the quarter because of the ample availability of the product. However, in the mid of the quarter, Diacetone Alcohol prices again shot up backed by the raw material crunch due to supply chain coupled with the high energy costs in the region.
For the Quarter Ending June 2021
North America
Diacetone Alcohol prices climbed up during the first half of the quarter in USA, due to steep rise in feedstock Acetone prices in the region. Prolonged plant turnarounds in the previous quarter due to freezing storm in the Gulf of USA, created extreme shortage of feedstock Acetone, which raised the prices of derivatives. Meanwhile, the demand for Diacetone Alcohol from its downstream solvent sector improved effectively till the end of May due to active pickup in market activities. However, in the month of June, prices started declining with increase in production activities in USA. Therefore, by the end of the quarter, prices of Diacetone Alcohol were heard hovered around USD 3220/MT in USA.
Asia
Diacetone Alcohol price trend varied with country over country in Asian market during this quarter, as the demand fluctuated in major Asian economies. In China, rise in feedstock Acetone prices, pushed up the prices of Diacetone Alcohol, while the demand fluctuated in a low to stable range. In India, prices remained volatile due to unstable demand from domestic downstream sector amid second wave of pandemic in the country. Prices of Diacetone Alcohol were accessed at USD 1300/MT and USD 1603/MT during final week of April in China and India, respectively.
Europe
Due to steep rise in prices of feedstock Acetone, prices of Diacetone Alcohol climbed up in Q2 2021. Europe faced critical shortage for almost all types of solvent, due to lower imports and production activities across the region. Moreover, curtailed production activities across Gulf of USA due to the polar storm in the previous quarter also impacted the overall imports from the country and created a regional shortage of feedstock Acetone as well as Diacetone Alcohol.
For the Quarter Ending March 2021
North America
After the freezing winter session, several chemicals showed spike in prices across the region. Consistent rise in prices of DAA was observed throughout the quarter, supported by critical shortage of the feedstock Acetone. This shortage was led by mass turnaround of several upstream plants including several refineries in effect of unfavourable plant operating conditions and halted transportation chain amidst chilling weather. Price of Diacetone Alcohol rose from USD 2655/MT to USD 3110/MT during January-March timeframe across Texas.
Asia
A steep rise in chemical prices was observed in the Asian market during Q1. The price of Diacetone Alcohol showed sharp uptrend till the end of February which later calmed down after arrival of March. In China, prices rose aggressively after the end of Lunar New Year holidays, as the manufacturers prioritised levelling their inventories and then providing the products to the market. While in the Indian markets, prices showed sharp rise till February due to regional shortage. This acceleration was halted by the resumption of Chinese production activities during March. The prices of DAA hovered around USD 1210/MT in China and USD 1486/MT in India during mid of February.
Europe
After the arrival of winter season, logistic delays hampered the delivery of raw materials to manufacturing plants, causing unplanned force majeure on many production units. With the similar reasons, imports also faced difficulties to reach their destinations on time, even the traders said they were paying premiums to get cargoes on time. Meanwhile, the demand remained firm from the downstream sectors, that supported the prices. In addition, premium shipping containers also added to an extra value over the imported Diacetone Alcohol cargoes during this period.
For the Quarter Ending December 2020
North America
In the North America region, multiple hurricanes drastically reduced the production of feedstock acetone. Hurricane zeta and hurricane delta in October, forced more than 90% plants to undergo force majeures. On the other hand, domestic demand of DAA took a slight inclination due to significant recovery from COVID-19 pandemic and improved export demand from several Asian countries. Although the tight supply was leading prices to rise drastically and till the end of December, improved supply fundamentals halted this inclination across the region.
Asia
Major Asian countries like China, Japan, India etc. witnessed substantial hike in the prices of Diacetone Alcohol buoyed by its improved offtakes from the prominent downstream industries and strong crude values. The paints and ink industry in India gained stability in Q4 2020 in comparison to Q3 with increase in household demand amidst the festive season in November which consequently led to a substantial hike in its prices as well. In line with the positive demand fundamentals, Diacetone Alcohol prices in India were averaged at USD 1286 per MT on Ex-Depot basis in Q4 2020.
Europe
During Q4 2020, the European market was struggling to cope with another round of COVID 19 infections. During October, automotive and construction sector were going through a bad phase and hence DAA had a minimal demand from the domestic market. The European export demand to Asian countries was also damaged due to ongoing container shortages. Later during late November and December, the market started to rebound slowly and the demand for DAA from domestic paints, Inks, paper and agrochemical market showed an optimistic improvement.
