IPA prices firm to highest level since Sept on low availability

07 February 2014 23:59 Source:ICIS News

LONDON (ICIS)--Prices in the European Isopropanol (IPA) market firmed to their highest level since September on the back of low availability due to increased demand and unconfirmed production problems, sources said on Friday.

A producer said the increased demand is coming mainly from the detergent sector, but also that prices had to move up for margin recovery, particularly in light of significant feedstock propylene price increases in December and January.

“You cannot sell a product [for] €100 less than the raw material,” the producer added.

A second producer said its availability is so low it is now putting deliveries under allocation, adding it had received some export requests from Asia as well.

A trader confirmed prices are going up but described demand as average. However buyers are nervous about obtaining product due to tight availability.

Prices were assessed €20/tonne higher on both ends of the assessed range at €1,030-1,070/tonne FD (free delivered) northwest Europe (NWE).

By Stefan Naidu