As June 2025 concluded, the Diisopropyl Ether (DIPE) market exhibited mix performance and displayed influential factors driving the international chemical markets. Feedstock dynamics were less influential, while policies and sectoral priorities played vital role to influence the U.S., China, and India during the third and fourth week of June.
• USA: Regulations Drive the Downtrend
The U.S. DIPE market witness a sustained drop in prices over two consecutive weeks, with a total decline of over 6% by the fourth week. The sustained depreciation occurred despite of increasing; Isopropyl Alcohol prices during the review period amidst regulatory and demand-side pressure.
U.S. regulations on VOC emissions for DIPE has tightened the demand considerably, leading manufacturers across industries like paints, coatings, and food to move to greener, low-VOC formulations. Industry giants like Kraft Heinz are already making a transition away from synthetic solvents such as DIPE. Despite tranquil port operations and consistent imports, the overall mood is bearish. The Exponential Moving Average (EMA) for DIPE dipped in both weeks, indicating a similar pattern of downward pricing over time.
• China: Stimulus Sparks Momentum
Contrary to this, China's DIPE market went into a bullish phase during the fourth week, breaking a five-week price stability streak with a 2.61% price jump. This was triggered by a major policy statement to rekindle domestic consumption for agrochemical and construction sectors. These policies not only boosted domestic demand but also triggered DIPE export interest from Asia-Pacific nations.
The EMA broke higher, implying a potential reversal in the DIPE market. Although pharmaceutical consumption was strong across both weeks, recent EU bans of Chinese medical suppliers and ongoing U.S.–China trade tensions could be long-term issues. Minor disruptions at the port of Qingdao did not affect overall flows.
• India: From Stability to Gradual Strengthening
India's DIPE market remained flat in the third week but shifted higher in the fourth week, with limited gains of up to 2.57% in CFR prices. The EMA increased slightly, validating a flat uptrend instead of a leap. India's import-dependent DIPE market is vulnerable to interruptions from Chinese ports, and minor delays from Qingdao during late June resulted in tighter regional supply.
In addition, a rebound in demand from agrochemicals, coatings, and paints, backed by re-export duties to the UAE, Japan, and Saudi Arabia—boosted sentiment. Although no new bulk deals were inked during the earlier part of the month, end-quarter needs assisted in swallowing up the available stock.
ChemAnalyst expects the DIPE prices in the first week of July to stay under pressure in the U.S. owing to regulatory pressures and poor demand. China could see sustained momentum upwards, underpinned by local stimulus and robust demand from pharmaceuticals. The DIPE market in India is expected to move slightly upwards as Chinese supply tightens and downstream interest remains firm. Overall, global sentiment will depend on stability in trade flows, environmental regulations, and feedstock cost behavior.
