LONDON (ICIS)--The €20/tonne drop in the feedstock August propylene contract price has not impacted European isopropanol (IPA) prices this week as players talk of good demand, sources said on Tuesday.
Producers and distributors saw good demand for the first week of August.
One producer said it would normally expect demand in August to be about 60% of a normal month because of the seasonal summer holiday lull, but so far monthly volumes appear to be at 80%.
“Prices are rock solid stable and not moved at all down following C3,” the producer added.
“We see quite healthy demand, [it is the] reason prices are still the same despite [the propylene] decrease. I'd say based on current information [demand] will be quite stable,” a distributor said.
However, expectations from the buy side lean more towards lower demand in the second half of August, with a pick-up in September.
Stable prices may also be supported by a reduction in spot availability as one producer has entered a planned turnaround, while market sources said a second producer may be concentrating its feedstocks on more profitable markets, reducing the amount of IPA it sends to the spot market.
The producer concerned was not immediately available for comment.
A producer has entered a scheduled shutdown for routine maintenance, a company source said on Tuesday.
“We [will] continue to supply from tank stocks but indeed are selling less into spot markets and just supplying regular customers,” the source said.