India IPA prices reach 5-month high on higher feedstock costs

15 March 2012 10:02  [Source: ICIS news]

SINGAPORE (ICIS)--India’s isopropanol (IPA) prices have reached a five-month high supported by firmer feedstock acetone and propylene costs, traders said late on Wednesday.

The prices have risen to $1,280-1,350/tonne (986-1,040/tonne) CFR (cost & freight) India, the traders added.

IPA prices started to decline from $1,550-1,600/tonne in May 2011, but started increasing in Decemberto reach the current level, according to data from ICIS.

Trade has been subdued over the last few weeks as buyers are reluctant to commit to fresh cargoes amid weak market demand caused by the bearish economy and the approaching end of India’s fiscal year, traders and buyers said.

“The gap between buy and sell ideas is too high to conclude deals,” a South Korean producer said.

Some buyers are opting for smaller parcels and are waiting for the prices to stabilise before risking to purchase bigger volumes, the traders said.

India’s Deepak Fertilisers and Petrochemicals is currently running its 70,000 tonne/year IPA plant in Mumbai, the only local IPA plant, at full capacity, a company source said.

By: Salinla Tulyasatien
+65 6780 4359

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