For the Quarter Ending March 2024
North America
During the opening quarter of 2024, the North American DAA market saw significant bullish trends. Prices of DAA rose by around 3% across the region during this period. The primary reason for this modest increase was the lack of cost support from the Acetone feedstock, which experienced a decrease of over 10%, thereby lowering production costs.
This occurred alongside a robust performance in the construction sector, with notable indicators such as increased house completions, heightened commercial construction activities, and heightened involvement from real estate developers, particularly in February and March 2024, although January saw a slowdown due to adverse weather conditions impacting logistics and transportation. While January typically witnesses reduced demand from downstream paints and coating industries due to subdued construction activities in North America during the winter season, this period saw Acetone prices rising by approximately 5%, providing support to the North American DAA market.
However, in February and March 2024, the market received demand-side support as weather conditions gradually improved, bolstering the construction sector. Additionally, stability in mortgage rates during these months positively influenced transaction activities in the construction sector, particularly with the onset of the spring homebuying season.
Asia
Throughout the first quarter of 2024, Diacetone Alcohol (DAA) prices in the APAC region have consistently declined. Various factors have contributed to this trend. Generally, there has been subdued demand from the downstream paints and coatings industry, particularly within the construction sector. The sluggish recovery of construction, evident in declining house prices and limited restocking activity, has further dampened the demand for DAA. Moreover, the lackluster performance of importing markets like South Korea and Japan has added to the overall weak international demand for DAA. China has experienced the most significant price fluctuations for DAA in the APAC region, characterized by a bearish market situation marked by ample supplies and tepid demand from the construction sector. Despite stable prices of the key feedstock Acetone, which influences DAA production costs, DAA prices have continued to decrease in China. The post-Chinese Lunar New Year lull has led to a slowdown in renovation activities and a lack of restocking momentum. The financial troubles of major real estate firms like Evergrande have also negatively impacted demand for DAA from the paints and coatings industry. Overall, DAA prices have depreciated by more than 11% during the opening quarter of 2024 when comparing prices from December 2023 to the end of March 2024.
Europe
The European DAA market witnessed a bullish market situation during the first quarter of 2024 due to receival of support from the prices of feedstock Acetone. Prices of Acetone surged by approximately 20% consequently increasing the production costs of DAA. Overall, the construction sector across the Eurozone witnessed moderate improvements across Germany, but the demand conditions were not positive. Improvements in the construction sector were witnessed across the UK, Belgium, and the Netherlands, providing some support to the prices of DAA across Europe. However, demand conditions continued to remain subdued as the construction sector continued to remain mired retrenchment throughout the first quarter. This is largely indicated by declining permits and construction projects. Overall real estate firms remained downbeat with outlook conditions being largely pessimistic for this year and investment sentiments remained historically negative with contractions witnessed in all segments of the construction sector, namely residential, commercial building, and civil engineering activities. Moreover, challenging conditions in the supply system also resulted from the strikes held by the Union Worker, leading to limitations in logistics and transportation costs.
For the Quarter Ending December 2023
North America
Diacetone Alcohol (DAA) prices in the North American market exhibited an initial increase of approximately 8% during the first two months of the fourth quarter, followed by stability in December 2023.
Demand conditions within the Diacetone Alcohol market remained largely subdued, mirroring the moderate performance of the construction sector. In the United States, the DAA market continued to be influenced by escalating production costs, driven by a notable increase of more than 50% in feedstock Acetone prices throughout the fourth quarter.
Regarding demand dynamics, the primary demand from the paint and coating sector within the construction industry remained subdued, despite the automotive sector displaying robust demand, evidenced by a 13% increase in automotive sales. Demand from the importing Mexican market also remained healthy, as the construction industry in Mexico sustained positive performance, with expectations of increased nearshoring activities in 2024.
The overall assessment placed the prices of Diacetone Alcohol at USD 2150/MT DEL Texas toward the conclusion of the last quarter of 2023.
APAC
During the fourth quarter of 2023, the Diacetone Alcohol (DAA) market in China experienced a bullish trend in the Asia-Pacific region, with prices indicating an 8% incline. Despite the construction sector's moderate performance during this period, the demand for DAA from the paint and coating industry was notably subdued. This was attributed to major Chinese real estate entities seeking protection against bankruptcies. The rise in DAA prices can be primarily attributed to the robust performance of the automotive sector, which exerted pressure on the downstream paint and coating industry. Additionally, fluctuations in Acetone prices, with varying availability among traders, contributed to fluctuating production costs. Although the downstream paint and coating industry in China showed a slight increase in procurement activities in November 2023, leading to heightened purchasing, the overall market dynamics may shift due to year-end offer sales and destocking activities by merchants. Despite a decline in raw material costs, the cost of DAA remained high, reflecting increased purchasing activities. As of the end of the current quarter, the latest price of DAA FOB-Shanghai in China is USD 1782/MT. Notably, there were no reported plant shutdowns during the quarter that significantly impacted the market. The percentage change in price from the same quarter of the previous year was 11%, and there was a 15% increase in price from the previous quarter. However, there was no significant percentage comparison between the first and second halves of the quarter.
Europe
The European market for Diacetone Alcohol (DAA) witnessed a sustained upward trajectory, primarily fueled by the escalating prices of feedstock Acetone, which experienced a nearly 10% surge across the region. Despite a challenging landscape marked by a struggling construction sector, indicated by diminishing housing permits and persistently pessimistic investment sentiments, the demand from the paints and coating industry, particularly within the construction and automotive sectors, remained subdued. Notably, the automotive industry faced a downturn, with sales continuing to decline throughout December 2023. However, a semblance of stability emerged through consistent demand from the printing sector, particularly in the ink industry, and the electronics industry. These sectors provided a bolstering effect on the overall DAA market, counteracting the prevailing challenges in other segments. The overarching market dynamics of DAA were significantly influenced by the persistent elevation in feedstock Acetone prices. The notable increase in upstream Benzene prices further escalated production costs, contributing to the overall rise in DAA prices. Despite the stable demand observed in the printing and electronics sectors, the continuous ascent in production costs remained the primary driver behind the upward trajectory of DAA prices.
For the Quarter Ending September 2023
North America
The pricing dynamics of Diacetone Alcohol in the US market followed a distinct pattern in the third Quarter of 2023. Initially, the product exhibited strength in July, driven by heightened demand from downstream industries such as coatings, paints, and chemical intermediates. Furthermore, an increase in inquiries from overseas markets contributed to this positive trend. However, as the Quarter progressed, a shift occurred in the pricing trend. The strong upward movement gave way to a sudden decline in price. This shift was primarily attributed to a reduction in fresh orders from potential customers. Merchants in the US market relied on existing inventory levels, resulting in a decreased number of new orders. Additionally, rising interest rates acted as a deterrent, negatively affecting product demand. It's worth noting that the US market had an ample supply of Diacetone Alcohol to meet domestic requirements, which played a role in stabilizing prices. Furthermore, the decreased volume of inquiries from overseas markets can be linked to disruptions in maritime trade in the Panama Canal. These disruptions prompted businesses to build up their stock within the domestic market, ensuring a reliable supply chain despite the challenges faced in international trade.
APAC
In the third Quarter of 2023, the price of Diacetone Alcohol (DAA) fluctuated in both the Indian and Chinese markets. Prices initially declined in July but later rebounded. The stability of acetone prices in the Asian region, a key raw material for DAA production, played a significant role in influencing the price trends. While demand for Chinese DAA in sectors like paints and coatings remained weak despite favorable cost dynamics, India saw increased demand for DAA due to robust growth in the construction sector and the automotive industry. This surge in demand in India, coupled with disruptions in supply chains caused by uncertain weather conditions in August 2023, contributed to the overall price dynamics of DAA. Additionally, rising acetone prices led to increased production costs for DAA, and limited crude oil supply from OPEC+ negatively impacted production activities in the region. Companies responded to the rising domestic demand and replenished products in the market, especially in anticipation of the approaching festive season.
Europe
During the third Quarter of 2023, the European Diacetone Alcohol (DAA) market witnessed a consistent decline in prices, primarily driven by weak demand from downstream industries. Additionally, the considerable weakness in the raw material Acetone significantly impacted the pricing dynamics of downstream derivative industries. Germany, a significant player in the European market, faced deteriorating business conditions during this period. The economic challenges were marked by a rapid decrease in both business activity and new orders. Several factors, including rising interest rates, customer uncertainty, and broader inflationary pressures, played a role in creating this challenging business environment. These factors collectively pointed to a bearish demand for DAA in the German market. The German manufacturing purchases index remained consistently below threshold limits throughout the Quarter, highlighting the uncertainty in domestic economic activity. Moreover, there was a significant drop in new export orders, primarily due to reduced sales across Europe. The combination of these factors contributed to the overall declining trend in DAA prices across the European region during the third Quarter.
For the Quarter Ending June 2023
North America
The price of Diacetone Alcohol saw a mixed trend in the North American region throughout the second quarter of 2023. The first two months of the second quarter decline in the cost of Diacetone Alcohol was only marginal but stemmed from weak demand conditions and a reduced need to hold inputs following improved delivery times and lower new order inflows. Although output continued to increase in May, the rate of expansion slowed to only a marginal rate. Production growth was often linked to greater workforce numbers and the timely delivery of inputs, which allowed firms to work through backlogs of work. Demand conditions weakened notably, however. The fall in new orders was strong in general and the fastest for quite some time in May. Past quarter climbs in selling costs, close by adequate stocks at clients, purportedly drove the decline in new orders. Burdening all out deals was a more extreme decrease in new product orders. Toward the end of the quarter, the cost of Diacetone Alcohol took off because of the vendors began to restock the material in the market to meet the downstream paint and coating industry interest from the domestic market.
APAC
The price of Diacetone Alcohol saw a declining trend in the Chinese market throughout the second quarter of 2023. There was a weakening domestic economy and export expectations due to the uncertain global demand and ongoing trade frictions with the US. China's manufacturing activity contracted for an entire second quarter, albeit at a slower pace. Further, sluggish global economic development, decreasing global trade and investment, geopolitical uncertainties, and declining external demand continue to influence China’s trade. The buying trend of DAA has just needed to maintain production, and the enterprises have a heavy wait-and-see approach in the market and engage only in need-based purchases. The price of DAA fluctuated and dropped in May and June in the Chinese market. Downstream demand performance was insufficient, procurement was more cautious, and the market transactions were mostly at low prices. The supply of the product was abundant, to meet the downstream requirement from the Chinese domestic market. The price of raw materials pure benzene and crude oil continued to decline, and cost support was insufficient. The market supply was relatively stable, and the supply and demand were relatively balanced.
Europe
Throughout the second quarter of 2023, the cost of Diacetone Alcohol saw a bearish trend in the European region due to high interest rates, inflation, and general hesitancy. Business conditions deteriorated across the German market throughout the second quarter. The manufacturing PMI was below threshold limits, indicating the slowdown of the largest economy in the Eurozone. Rapidly improving supply chain conditions also justified business destocking efforts, with the average input lead times shortening drastically in the second quarter. Weakness remained centered on the manufacturing sector, where order books fell at the sharpest pace for eight months amid reports of customer hesitancy and destocking. Backlogs of work across Germany’s private sector fell at a faster rate in June, with firms increasingly relying on their outstanding business to support activity levels. Company expectations meanwhile slumped to a six-month low in June, whilst the rate of job creation also ticked down. Enterprises reported a worsening of demand conditions at the end of the second quarter. This was highlighted by a second consecutive month-to-month decrease in all-out inflows of new work, with the pace of decline enlivening to the quickest since last December.
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.
