HS Code:
4-Hydroxy-4-methylpentan-2-one, commonly known as Diacetone Alcohol (DAA), is an organic compound with the formula CH3C(O)CH2C(OH)(CH3)2. It falls under HS Code 29144090, which covers ketone-alcohols and ketone-aldehydes. Diacetone Alcohol is a colorless liquid with a mild odor, primarily used as a solvent in industrial applications such as coatings, paints, and varnishes. It also serves as an intermediate in the synthesis of other chemicals like methyl isobutyl ketone (MIBK). Its properties, including high boiling point and good solvency, make it valuable in industries requiring slow-evaporating solvents.
Total Trade Volume
Approximately 150,000 metric tons
Data from 2022
Source
International Trade Centre (ITC) Trade Map, UN Comtrade Database
45,000 metric tons
30% of global trade of total trade
Increasing
30,000 metric tons
20% of global trade of total trade
Stable
20,000 metric tons
13% of global trade of total trade
Increasing
15,000 metric tons
10% of global trade of total trade
Stable
10,000 metric tons
7% of global trade of total trade
Increasing
Average Rate
5.5% ad valorem
Highest Rate
10% (imposed by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like EU-US trade pacts or within ASEAN)
Rising demand in Asia-Pacific for coatings and paints
Increased production and export from China and South Korea to meet regional industrial needs
2021-2022
Shift towards eco-friendly solvents
Pressure on Diacetone Alcohol market due to environmental regulations, pushing innovation in green alternatives
2020-2022
Stable demand in automotive and construction sectors
Consistent trade volumes in developed markets like the US and Germany due to steady industrial output
2019-2022
The European Union introduced stricter Volatile Organic Compound (VOC) emission standards, impacting the use of Diacetone Alcohol in coatings and paints.
January 2023
Potential reduction in demand within EU markets, prompting exporters to focus on non-regulated regions or invest in compliant formulations.
Major chemical manufacturers in China announced new facilities for Diacetone Alcohol production to cater to growing domestic and export demand.
September 2022
Increased global supply may lead to competitive pricing, benefiting importers but challenging smaller producers.
Negotiations between the US and China resulted in reduced tariffs on certain chemical intermediates, including Diacetone Alcohol, under Phase One trade deal implementations.
March 2022
Enhanced trade flows between the two largest markets, stabilizing prices and improving access for US importers.