US IPA demand lower than normal for this time of year − trader

16 May 2014 22:33 Source:ICIS News

HOUSTON (ICIS)--Demand for US isopropanol (IPA) is flat due to a longer-than-normal winter that delayed shipments and disrupted supply chains, a trader said Friday.

The peak season for IPA demand tends to be April and May, the trader said. But, the market was largely flat in April and has seen no movement so far in May.

“We’re way below seasonal demand for IPA,” the source said. “The hard winter pushed everything back about a month late. I expect [IPA demand] to hit its peak in June. Right now the demand just isn’t there.”

Current ICIS-assessed prices for IPA are 73-75 cents/lb ($1,609-1,653/tonne) for contract prices, 67-70 cents for domestic spot and 63-68 cents/lb for export.

 Major US IPA suppliers are Dow Chemical, LyondellBasell, Haltermann, ExxonMobil and Shell.

By Andrew Guy Jr