US April IPA contracts roll over on weaker demand, ample supply

12 April 2012 20:51  [Source: ICIS news]

HOUSTON (ICIS)--US isopropanol (IPA) contract prices for April settled at rollovers from March, sources said on Thursday, after sellers rescinded price-hike proposals proffered earlier in the month.

The settlement holds US prices for IPA at 88-90 cents/lb ($1,940-1,984/tonne, €1,474-1,508/tonne), as assessed by ICIS.

Offers were higher than demand warranted, a buyer said, “and more product will be coming from Asia, which will make the unbalanced market and profitability of IPA even worse.”

From the start, April pricing efforts were not unanimous because one large producer never announced price-hike efforts.

Buyers described IPA demand as stable to weak, with ample supply. One added that the April offers could not be justified even with a 5% increase in March propylene from April.

IPA contract values were assessed up by 15 cents/lb for March, based largely on a 30% jump in February feedstock chemical-grade propylene (CGP).

US IPA producers include Shell Chemicals, Dow Chemical, LyondellBasell and ExxonMobil.

($1 = €0.76)

By: Larry Terry
1 713 525 2653

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