IPA contracts down by 5-8 cents/lb on feedstock, import pressure

27 July 2012 23:29  [Source: ICIS news]

HOUSTON (ICIS)--US isopropanol (IPA) contract prices for July fell by 5-8 cents/lb ($110-176/tonne, €89-143/tonne) on weaker June feedstock and pressure from imports, sources confirmed on Friday.

The new IPA contract range is 72-77 cents/lb, as assessed by ICIS, and most of the decline occurred at the low end of the range.

Reductions of 5-9 cents/lb were heard throughout the month. Although a major producer dropped its monthly contract price by 5 cents/lb, better offers were confirmed by some customers.

Imports and lacklustre demand have exerted downward pressure on prices, but June feedstock chemical-grade propylene (CGP) was the primary cause. June CGP settled down by 15.50 cents/lb, but rolled over for July.

US CGP contracts for August were nominated at a rollover by one producer, potentially setting the stage for the second flat settlement in as many months.  However, one source suggested propylene could drop by 2 cents/lb for August.

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

($1 = €0.81)

For more on IPA, visit the ICIS Plants & Projects database

By: Larry Terry
1 713 525 2653

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