US IPA gains 10 cents/lb on January feedstock pressure

25 February 2011 22:18  [Source: ICIS news]

HOUSTON (ICIS)--US isopropanol (IPA) contracts rose by 10 cents/lb ($220/tonne, €158/tonne) on pressure from January feedstock chemical-grade propylene (CGP), buyers said on Friday.

The increase stemmed from mid-January price-hike initiatives of 10 cents/lb, prompted by a sharp jump in January CGP prices, which increased by 15 cents/lb over December.

The new IPA contract price range is 89-92 cents/lb, before discounts, as assessed by ICIS.

IPA prices last increased in January, rising by 5 cents/lb on December CGP contract increases and propylene spot-price momentum.

Meanwhile, producers sought another 5 cents/lb effective on 1 February, though one buyer said its supplier had abandoned its February price push without explanation.

The move did not appear to be market-wide, but CGP rolled over in February.

Two producers said they had not backed away from their 5 cent/lb increases in February, citing still-elevated propylene costs and some renewed buy-side interest after customers pre-bought significant volumes in January.

US IPA suppliers include ExxonMobil, Dow Chemical, Shell, LyondellBasell, Sasol and Haltermann.

($1 = €0.72)

For more on IPA, visit ICIS chemical intelligence
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By: Larry Terry
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