US IPA prices unchanged but players see signs of tightening supply, increased demand
Deniz Koray
02-Nov-2020
HOUSTON (ICIS)–US isopropanol (IPA) prices were unchanged last week. However, several market participants recently saw proposed price increase nominations for the first time in months.
After rising in late Q1 and early Q2 because of their application in products that surged in demand, such as hand sanitizer, IPA prices have fallen considerably from their yearly highs.
Current prices are still higher than assessed prices before the start of the coronavirus pandemic though.
Prices have mostly come down in recent months due to supply of IPA (and end-use product, such as disinfectants and sanitizers) being ample due to a boost in production in the late spring.
However, the past week was marked by both rising prices in Europe due to fear of future constraints and the first set of price increase nominations from a distributor within the US since the middle of Q2.
European concerns about tightening
supply
Now, as European sources
worry about additional lockdowns
as coronavirus cases across the continent
surge, some market players in the US are
wondering if supply could tighten here as well.
While some lockdowns in European countries such as Germany and France have already been initiated, there has yet to be serious discussion in the US about similar steps.
With tighter days potentially ahead for the European IPA market, some domestic players are wondering if the US will begin to send exports to abroad.
Others are wondering if European markets are once again several weeks ahead of the US, due to the more proactive government response to the rising number of coronavirus cases in Europe.
One US-based source expected domestic demand for hand sanitizers to again increase in the winter although not to the levels seen in March.
The source said producers and supply chains are better equipped now than during the first wave.
Still, there remains a possibility that supply could tighten due to higher levels of exports, followed quickly by higher domestic demand for IPA, as hospitals and other end-users seek out sanitizers.
US domestic prices are assessed at 53-59 cents/lb ($1,168-1,301/tonne) delivered (DEL) US Gulf.
Spot prices are assessed at 53-56 cents/lb free on board (FOB) US Gulf.
US IPA suppliers include ExxonMobil, Dow Chemical, LyondellBasell, Monument Chemical and Shell Chemical.
Focus article by Deniz Koray
Global News + ICIS Chemical Business (ICB)
See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.
Contact us
Partnering with ICIS unlocks a vision of a future you can trust and achieve. We leverage our unrivalled network of industry experts to deliver a comprehensive market view based on independent and reliable data, insight and analytics.
Contact us to learn how we can support you as you transact today and plan for tomorrow.