02 July 2010 08:01 [Source: ICIS news]
SINGAPORE (ICIS news)--Isopropanol (IPA) spot prices in China have tumbled 16% from early June due to prevailing supply overhang, sluggish demand and recent declines in raw material acetone values, industry sources said on Friday.
Continued weakness in ?xml:namespace>
Spot IPA prices were discussed at $930-1,000/tonne (€744-800/tonne) CFR (cost and freight), northeast (NE) Asia and at $1,050-1,120/tonne southeast (SE)
IPA had been on a downtrend in
“The [China IPA] market has been slow since the Lunar New Year in February, and we did not see any recovery,” an importer based in east
Consecutive price adjustments by Chinese IPA major Jinzhou Petrochemical was forcing other Asian producers out of the
“We are pressured by the acetone-based IPA producers in the region. Acetone is really falling rapidly, we have to be competitive in terms of our offers,” the official added.
If acetone values continued to drop, producers of propylene-based IPA like
While a few Asian producers were able to offer the product at $1,000/tonne CFR China, they failed to match buying ideas at $900-930/tonne CFR China for July shipment, said market sources.
As a result, some Asian IPA producers were shipping cargoes to the SE Asian markets where IPA would soon be in surplus, they added.
“We can’t offer at $1,050/tonne FOB [free on board]
Some Asian producers were mulling operation cuts to reduce stock pressure, sources said.
Industry sources said they did not expect the China market to rebound in the near future.
“There is no reason for the market to rebound.
“The offers are not low enough to fetch any deals. The market will fall further, looking at how much
IPA is used mainly as a solvent in applications such as cosmetics and pharmaceutical products, inks and coatings.
($1 = €0.80/ $1 = CNY6.78)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|