Diisopropyl Ether (DIPE) a key solvent for pharmaceuticals, agrochemicals, and dye intermediates diverged sharply across North America and Asia market during mid-July. While the U.S. market faced logistical congestion and domestic oversupply, Asian countries like China and India experienced strong demand growth, despite facing port delays and freight cost pressures.
• USA: Export Delays and High Inventories Weigh on DIPE Amid Weak Agrochemical Demand
The DIPE market in the United States exhibited signs of logistical strain and inventory accumulation, despite feedstock stability. While Isopropyl Alcohol (IPA) prices declined by 0.75%, DIPE production remained steady across the U.S. Gulf Coast.
Slight congestion at major export gateway “Houston port” caused shipment delays to Latin America, disrupting flow led to domestic stockpiling. Alternate DIPE export options were limited, intensifying oversupply in the U.S. market.
On the demand side, the agrochemical sector continued to face downward pressure due to seasonal weakness and pricing challenges, although long-term growth forecasts remain intact. In the pharmaceutical and color additive sectors, ongoing regulatory transitions added to demand uncertainty. The FDA’s accelerated phase-out of synthetic dyes gained momentum, culminating in the approval of “gardenia blue”—a new natural food and drug colorant—on 14th July.
• Asia: DIPE Strengthens in China and India on Robust Sector Demand
Chinese, DIPE market gained strength as DIPE export activity improved. In mid-July, export prices increased by 1.91%, even as feedstock costs fell by 1.04%. The 12-week Exponential Moving Average (EMA) remained lower than current market levels, reflecting improving price sentiment.
Port activity at Qingdao, remained marginally disrupted. High global demand from India, Singapore, and Malaysia helped sustain export momentum, despite a brief rise in freight charges during the first week of July.
Chinese agrochemical sector indicated stabilization, with key herbicide markets recovering. The pharmaceutical industry underwent revolutionary growth, fostered by more than 1,250 novel drug developments and recently imposed Innovative Drugs Policy. The policy strengthened administrative control, market entry, and pricing secrecy, accelerating investment and overseas licensing agreements.
In India, the DIPE market maintained a steady trajectory despite global supply disruptions. DIPE Import (CFR) prices increased by 1.08%, mainly due to holdups at Qingdao port and higher freight charges.
Indian agrochemical sector received a regulatory lift. The Central Insecticides Board & Registration Committee approved 27 new crop protection chemicals, including fungicides, insecticides, and herbicides to improve management for major crops such as paddy and cotton, on 8th July. Concurrently, new labelling regulations came into force under the Insecticides (First Amendment) Rules, 2025, strengthening packaging and safety standards.
The pharmaceuticals, investor sentiment strengthened after proposed tariffs were delayed, lifting short-term pressure and enabling market clarity.
ChemAnalyst, anticipates U.S.–China biotech collaborations will likely to be complicated, as the U.S. FDA is set to implement more stringent controls on clinical cooperation with Chinese counterparts. India will reflect good DIPE supply chain management against supply bottlenecks from China.
