The global Diacetone Alcohol (DAA) market witnessed minor fluctuations during the first half of March 2025. The prices experienced slight uptick in the Asian market particularly India during the first week of the month however, stabilized later. Meanwhile, the prices remained stagnant throughout the review period in the North American market.

In the North American market, the price of DAA remained stable during the initial half of March 2025, mirroring the trend observed in the previous weeks. Meanwhile, the price of essential feedstock Acetone also remained elevated during the same period, however its impact on DAA prices remained limited, influenced by sufficient supplies of DAA in the domestic market. On the demand side, purchasing activity from the prominent downstream construction sector remained firm, supported by ongoing infrastructure projects within the region. Further, traders anticipate increased inquiries from downstream buyers as the summer season approaches, prompting them to maintain stable pricing to remain competitive. Furthermore, recently imposed tariffs on imported chemicals have bolstered demand for domestically produced DAA.

On the other hand, the prices of Diacetone Alcohol experienced a slight increase in the India market during the initial week of March 2025, however stabilized later. The initial price surge was attributed to a shortage of domestically produced material in the regional market influenced by inadequate supplies of essential raw material in the domestic market. India having limited number of Acetone manufacturers, with Hindustan Organic Chemicals Limited (HOCL) and Deepak Phenolics being the only domestic producers has led to widened disparity between demand and supply of raw material, prompting towards reduced production rates of various downstream derivatives including Diacetone Alcohol, thus exacerbating the supply shortage. Further, on the demand side, purchasing activity for DAA remained modest, particularly from the downstream construction sector. The market insights indicate an improvement in overall DAA demand, supported by stable enquiries from the key downstream industries such as paints, coatings, inks, personal care, and adhesives. Additionally, India’s real estate sector exhibited an optimistic outlook in February 2025, with expectations of continued growth in the forthcoming months driven by urbanization, technological advancements, and evolving consumer preferences. Further, after the Union Budget 2025 passed, Indian government is expecting to double its investment in the construction sector.  This sector’s expansion is anticipated to contribute nearly 10% to India's GDP by 2025, potentially driving higher demand for construction-related chemicals, including DAA.

As per ChemAnalyst, the price of DAA is anticipated to increase in the upoming months owing to modest demand growth.  The Summer season usually exerts construction activity exerting upward pressure on commodities used for construction activities like DAA.