Disruption in Supply/Demand Equilibrium Witness Oscillations in the US Di Isopropyl Ether Market

Louisiana, USA- In May 2023, the Di isopropyl Ether price trend shifted, and prices decreased in the USA. The reason for this contraction in the Di isopropyl Ether prices is the sufficient availability of supplies and moderately low offtakes of solvent from downstream industries backed by weak activities in the construction sector during quarter 2 of 2023. Simultaneously, the decrease in Di isopropyl Ether's key feedstock Isopropyl Alcohol prices during the month amid a reduction in upstream Acetone and Propylene costs and sufficient inventory levels reduced the production costs. Concurrently, global energy costs fell due to a decline in fuel costs amid the depression in consumption rates with rising temperatures.

The available supplies of Di isopropyl Ether were firm in the market and sufficient to cater to the demand from downstream buyers. The offtakes were inadequate due to a decline in offtakes from downstream industries. Conversely, the orders for Di isopropyl Ether remained sluggish for solvent due to weak activities in the construction sector during Q2 of 2023. Simultaneously, the USA's manufacturing Purchasing Manager's Index fell during May 2023, indicating a contraction in manufacturing activities, and remained below 50. Meanwhile, demand for paints and coatings improved slightly in the Aerospace sector. Conclusively, the Di isopropyl Ether prices in the USA witnessed USD 2785/MT, after a decrease of USD 61/MT in the last month's discussions, as per the ChemAnalyst data sources.

On the contrary, the Di isopropyl Ether price trend was firm during April 2023, and prices witnessed an increase of 4.7% during the month. Consequently, Di isopropyl Ether DINP DEL USGC prices assembled at USD 2846/MT. As per the analysis, the prices increased amid an increase in cost pressure from feedstock Isopropyl Alcohol amid shifting in cost support and consistent demand from downstream industries. Meanwhile, upstream Acetone prices were firm amid insufficient supplies and strong cost support from upstream Crude Oil. Towards the end of April, cost pressure was induced by Propylene as prices were unstable due to volatile upstream costs, which raised the production costs of Di isopropyl Ether. Concurrently, the supply rates oscillated amid ease in logistics constraints and a decline in inventory levels in the second half of the month amid consistent offtakes from end-users.

As per the estimation, the Di isopropyl Ether prices are likely to increase in the upcoming weeks in the USA with an increase in feedstock Isopropyl Alcohol prices. The demand for Di isopropyl Ether solvent will remain moderate from paints and dye producers, and supplies will be sufficiently available in the market.