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
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.
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.
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.
