US October IPA contract settles at rollover on steady propylene

01 November 2013 21:27  [Source: ICIS news]

HOUSTON (ICIS)--Lower prices for feedstock propylene have led several US producers to back down from recent price increase nominations for US isopropanol (IPA), sources said on Friday.

IPA contract prices for October have rolled over, as assessed by ICIS, continuing the trend of stability in the market. IPA contract prices have been steady since May.

However, one market source said it was told by a major IPA producer that supply in the US had tightened.

The source said the producer did not indicate why supply was tightening. The source also said that it was unlikely that IPA producers would raise prices in the near future since propylene prices had remained steady.

“No way can they go up on IPA with propylene the way that it is,” a source said Friday. “That’s just not going to happen. I think IPA will stay flat for a while.”

Current IPA contract prices are assessed at a range of 76.00-78.00 cents/lb ($1,675-1,719/tonne, €1,240-1,272/tonne).

Major IPA producers are Dow, Shell, Sasol and ExxonMobil.

($1 = €0.74)

By: Andrew Guy Jr
+1 713 525 2653

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