Middle East IPA rises $25/t on high feedstock

23 April 2008 05:31  [Source: ICIS news]

By Desmond Chia

SINGAPORE (ICIS news)--Isopropanol (IPA) in the Middle East remains on an uptrend and is said to have risen by $25/tonne from last week on high feedstock propylene prices, industry sources said on Wednesday.

This was helped by healthy demand from the downstream paints and coatings sector, which was typically good in the second and third quarter of the year, they added.

“But the main reason why IPA prices are rising is attributed to the spike in prices of propylene,” one trader said.

Asian propylene was assessed last week at $1,350-1,400/tonne CFR (cost and freight) northeast (NE) Asia, representing an increase of about $95/tonne from early April levels.

Notional offers for IPA cargoes of around 1,000 tonnes were heard above $1,400/ tonne CFR Middle East for May delivery. IPA supplies into the Middle East mainly come from Europe and Singapore. 

Middle East IPA was assessed this week at $1,355-1,405/tonne, up $25/tonne from last week and ex-tank prices in the region also rose $25/tonne to $1,405-1,425/tonne during this period.  

IPA prices in India had also been firming amid a tight supply crunch and high feedstock rates and were assessed at $1,325-1,375/tonne CFR India this week, up $25/tonne over last week.

A major Indian supplier said availability was tight and would become more limited in May due to a turnaround at its 70,000 tonne/year IPA plant in the middle of next month. 

For more on IPA visit ICIS chemical intelligence

By: Desmond Chia
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