Weekly US IPA prices decrease slightly despite rising coronavirus cases

HOUSTON (ICIS)–Isopropanol (IPA) prices slightly decreased this week on the spot market and for domestic delivered product, reflecting the continuation of a trend that has been seen in markets since May.

While prices are still much higher than they were prior to the coronavirus pandemic, there has been a notable decline since IPA peaked in mid-April.

Domestic and sport prices each fell by 5 cents/lb ($110/tonne) on the high end this week.  Prices on the low end were unchanged.

Domestic prices are now assessed at 95-115 cents/lb DEL (delivered) US Gulf, while spot prices are 100-120 cents/lb FOB (free on board) US Gulf.

Demand Unchanged for Now

Since IPA prices surged amid the first spike in coronavirus cases, some market participants were surprised that market demand and prices had not again increased with the second.

While there have been reports of potential shortages in personal protective equipment (PPE) in hospitals, hand sanitizer shortages have not yet been discussed.

As a result, demand for IPA has not yet seen sudden rises in states such as Texas, Arizona, or Florida.

US IPA suppliers include ExxonMobil, Dow Chemical, LyondellBasell, Monument Chemical and Shell Chemical.

Visit the ICIS coronavirus topic page for analysis of the impact on chemical markets and links to latest news.