LONDON (ICIS)--European isopropanol (IPA) spot prices continued their upward momentum this week, driven by short supply and producers looking to recover margins after propylene feedstock prices rose in recent months, sources said on Friday.
A producer said these increases were inevitable.
“Prices were at a reduced level [compared to] the raw material in 2013,” the producer said. “They have been suppressed for a long time.”
The extremely low availability has caused a second producer to turn away new orders in February, with strong demand coming from the paint, resin and pharmaceutical sectors.
A distributor said at least one producer is looking for €50/tonne increases but added it had reservations about whether this was realistic.
Prices for technical grade IPA rose to €1,050-1,100/tonne FD and cosmetic/pharmaceutical grade rose to €1,150-1,230/tonne FD respectively.