HOUSTON (ICIS)--Full tanks and ample supply will likely lead to a continuing softening of the US isopropanol (IPA) market, a source said Friday.
IPA prices have fallen in recent weeks, as the market appears to have corrected itself from an 8 cent/lb ($176/tonne) hike earlier this year. Skyrocketing costs of feedstock propylene also pushed prices for its downstream products higher.
“We continue to see softening [in IPA],” the source said. “And it appears as if tanks are full. Usually when you see that, there is often a decrease in prices.”
Last week, domestic prices for IPA fell 5 cents/lb, as several sources indicated that the market was getting back to normal.
“There’s definitely been a correction on IPA,” the source said. “And I think we’ll see that in the future.”
ICIS-assessed prices for IPA this week remain unchanged.
Major US IPA suppliers are Dow Chemical, LyondellBasell, Haltermann, ExxonMobil and Shell.