Updated to mid-November 2009
Asian market review by Peh Soo Hwee, ICIS pricing
Asian isopropanol (IPA) spot prices crossed the $1,000/tonne level for the first time this year, underpinned by firm feedstock propylene values and limited supplies in the region. Some producers had maintained plant operating rates at reduced levels of 60-80% due to high costs and feedstock shortages, which kept supply snug.
This gave a boost to the market despite unchanged demand fundamentals and helped sellers to achieve their price targets of up to $1,050/tonne CFR (cost and freight) Asia. By mid-November, IPA had risen $70-100/tonne to $1,000-1,050/tonne CFR NE Asia on the quarter and also gained $70-80/tonne to $1,000-1,030/tonne CFR SE Asia (southeast Asia) over the same period.
European market review by Mark Victory, ICIS pricing
European IPA prices increased by €80/tonne at the top-end of the range, to €820-990/tonne FD (free delivered) NWE (northwest Europe) between mid-August and mid-November, as a result of higher feedstock costs.
Nevertheless, by the end of the period, prices for technical grade product were starting to fall back due to lower demand as consumers reduced stock ahead of the year-end.
For cosmetic grade material, prices remained high as producers and distributors reported strong consumption because of increased demand for higher grade product among end-use consumers.
US market review by Larry Terry, ICIS pricing
IPA prices in the US rose by 15-17 cents/lb ($331-375/tonne) on feedstock supply and price pressure during the three-month period leading up to mid-November.
Operational issues at Dow Chemical’s Texas City IPA plant in Texas led the company to put the material on 100% allocation indefinitely. And the run-up in feedstock chemical-grade propylene (CGP) prices stemmed from tight supply, steady demand and quickly rising refinery-grade propylene values.
Propylene cost was the primary price driver during the period as demand remained well below year-earlier levels and also down sequentially, especially in the new construction and automobile sectors. An increase of 3 cents/lb late in the period also stemmed partly from September’s 12 cents/lb increase in CGP.
That hike was at first expected to weaken as IPA sales dropped off notably early in November, but continued to hold as the period ended.
The Latest
Isopropanol
Price Reports
Isopropanol
price reports from ICIS pricing give you immediate access to the latest price movements
and critical market commentary.
Register for your FREE trial today.
Isopropanol
Uses and Outlook
The main use for isopropanol (IPA) is in solvents with outlets in cosmetics and personal care products, de-icers, paints and resins, pharmaceuticals, food, inks and adhesives. It is also used as solvent for oil and gums and in the manufacture of fishmeal concentrates. Low-grade IPA is used in motor oils. Little or no growth is expected in solvent applications due to stricter regulations on volatile organic compounds (VOCs).
More about Isopropanol Uses and Outlook
Isopropanol
Process Technologies
Two commercial routes to IPA are used. The older method is based on the indirect hydration of refinery-grade propylene using sulphuric acid to form isopropyl sulphate which is then hydrolysed with steam to form sulphuric acid and IPA. The crude IPA is distilled to the desired purity.
More about Isopropanol Process Technologies
Search for
Isopropanol
Suppliers
If you are sourcing
Isopropanol
products and services, use ICIS search for fast and accurate results. ICIS search
is the search engine dedicated to the chemical industry – we show you only relevant
results -
search now.