Europe IPA spot range widens on Rhine logistics issues

LONDON (ICIS)–European isopropanol (IPA) spot price ranges have widened as the critically low levels on the River Rhine are affecting some areas more than others.

While the market is largely well supplied, higher transportation costs have been affecting some producers and distributors.

European IPA spot prices increased on the high end of the range as producers and distributors situated closer to the Rhine have been tackling logistical constraints and increasing transportation fees for some time now.

Apart from high barge costs, truck and train freight prices have also been soaring due to increasing demand for alternative transportation.

Some market participants have therefore translated the higher transportation fees onto their IPA prices and have been quoting levels at the high end of the range.

Other players have been less affected logistically and confirmed levels at the low end of the range.

Technical grade prices were assessed at €1,110-1,160/tonne FD (free delivered) northwest Europe (NWE), up €10/tonne on the high end.

The cosmetic and pharmaceutical grade also widened to €1,260-1,350/tonne FD NWE.

Earlier in the month, the Rhine Shipping Authority (WSA) warned that water levels on the Rhine are in danger of receding to the lowest levels on record as the lack of precipitation continues, causing havoc in the distribution of petrochemicals in northwest Europe.