India IPA price surges $0.10/kg on tight supply

13 May 2008 10:48  [Source: ICIS news]

SINGAPORE (ICIS news)--Domestic prices of isopropanol (IPA) in India have surged amid a supply crunch in India, rising by at least rupees (Rs) 4/kg ($0.10/kg) since 1 May, industry sources said on Tuesday.

 

“Supply is very tight, coupled with good demand. Hence, we are hearing pretty high domestic prices,” a major supplier said.

 

The tight supply situation is expected to ease slightly with the arrival of some cargoes into the west coast of Kandla and the east coast of Vizag.

 

Offers were heard at as high as Rs66-67/kg in the port of Kandla and Rs68/kg in Chennai.

 

“Even with such high domestic prices, we do not have any availability and we can only supply to our contractual customers,” another source added,

 

Major suppliers said on 1 May they had raised their domestic prices by Rs4/kg to Rs62/kg ex-tank for Maharashtra and to Rs61/kg ex-tank outside Maharashtra.

 

“We have to raise our domestic offers due to firming IPA prices and propylene international prices,” a supplier said.

 

A scheduled turnaround at a major Indian supplier’s 70,000 tonne/year IPA plant will further tighten supplies in May. 

 

($1 = Rs42.03)

 

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By: Desmond Chia
+65 6780 4359

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