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.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Diacetone Alcohol (DAA) market exhibited stable pricing, despite facing several market challenges. The primary factor contributing to this stability was the equilibrium between supply and demand. Although demand from key downstream sectors, particularly paints, coatings, and adhesives, experienced some fluctuations during the quarter, overall consumption levels remained steady, preventing any major price shifts.
On the supply side, consistent production rates from manufacturing facilities helped ensure an adequate and uninterrupted flow of DAA into the market. This stable supply situation counterbalanced the periodic dips in demand, fostering a relatively balanced market environment. Additionally, despite some upward pressures from fluctuating raw material costs and logistical challenges, such as transportation delays and rising freight charges, these factors did not significantly impact the overall pricing landscape.
As the quarter drew to a close, the price of Diacetone Alcohol remained steady at USD 2266/MT DEL Louisiana in the USA. This stability underscores the market's resilience and ability to maintain balance between supply and demand, positioning DAA pricing within a stable and predictable range throughout the third quarter of 2024.
APAC
In Q3 2024, the Diacetone Alcohol (DAA) market in the APAC region experienced a notable decline in prices, driven by a combination of economic and environmental factors. A primary contributor to this downward trend was the consistent drop in feedstock prices, which reduced production costs across the region. Additionally, sluggish production rates further compounded the pricing pressure, as manufacturers adjusted output in response to lower demand from key downstream industries like automotive and construction. China, being the most affected region, saw a significant impact on DAA prices. The construction sector, a major consumer of DAA, was notably subdued due to unfavorable weather conditions, including typhoons that disrupted building activities and hampered demand. This further contributed to a buildup of inventories, adding to the existing oversupply in the market. As a result of these factors, the price of Diacetone Alcohol in China dropped throughout the quarter, ending at USD 1500/MT FOB-Shanghai. This decline reflects the overall weak market sentiment, characterized by a supply-demand imbalance and broader macroeconomic challenges affecting the APAC region during Q3 2024.
Europe
In Q3 2024, European Diacetone Alcohol (DAA) prices experienced a decline, primarily driven by subdued demand and ample inventories. Both domestically produced and imported DAA were readily available, creating an oversupply in the market, which exerted significant downward pressure on prices. Key downstream industries, such as paints, coatings, and construction, exhibited lower-than-expected consumption levels, further compounding the market imbalance. As the quarter drew to a close, broader economic indicators reflected a mixed picture. The European Commission’s Economic Sentiment Indicator (ESI) remained relatively stable at 96.7 points in the EU, while dipping slightly by 0.3 points in the eurozone, reaching 96.2 points. Despite the overall decline in DAA prices, the steadiness of the ESI suggests improved confidence within the construction sector and among consumers, hinting at a potential recovery in demand moving forward. However, this optimism was not yet strong enough to offset the impact of weak industrial demand on DAA prices during Q3. By the end of the quarter, the downward pricing trend remained a key feature of the European DAA market, with the supply-demand disparity continuing to define the market landscape.
FAQs
• What is the current price trend for Diacetone Alcohol (DAA)?
DAA prices remained flat to slightly weaker across major regions in July 2025, as subdued demand and stable to softer feedstock acetone costs prevented upward movement.
• Who are the leading Diacetone Alcohol producers globally?
Key producers include Arkema, Solvay, Monument Chemical, Mitsubishi Chemical, and KH Neochem, which collectively supply markets across Asia, Europe, and North America.
• What is the Diacetone Alcohol Price Forecast for August 2025?
Prices are expected to stay soft, with weak coatings and construction demand continuing to limit spot market activity, even as supply remains balanced.
• Which sectors are driving DAA demand globally?
Coatings, adhesives, paints, and solvents for construction and industrial applications remain the primary demand drivers, though sluggish project activity and cautious industrial spending are curbing overall offtake.
