Global Isopropyl Alcohol Price Trends and Lunar New Year Supply Chain Challenges
Global Isopropyl Alcohol Price Trends and Lunar New Year Supply Chain Challenges

Global Isopropyl Alcohol Price Trends and Lunar New Year Supply Chain Challenges

  • 21-Feb-2024 5:41 PM
  • Journalist: Peter Schmidt

As February unfolds, Isopropyl Alcohol prices in the Asia Pacific region are anticipated to escalate rapidly, a trend likely to persist until the end of March 2024. This surge is expected to place considerable strain on supply chains and market dynamics. However, the international European and other North American regions are expected to witness a continuous price decrease in the second half of February 2024. Across the Asia Pacific region, the arrival of the Chinese Lunar New Year (CNY) celebration on February 10th–February 16th, 2024, has left a discernible mark on the Asia Pacific (APAC) supply chain, affecting Isopropyl Alcohol (IPA) production, movement, and availability for the same across the region and neighboring countries. The production phase witnesses temporary shutdowns in Chinese factories, and major Isopropyl Alcohol producers, disrupting output for 1-2 weeks. Post-CNY labor shortages further impede production ramp-up as workers return late from holidays, creating a complex scenario.

In the movement phase, transportation delays and increased freight costs become prominent. Port operations slow down during CNY, causing delays in shipping and container movement, affecting both raw material deliveries and finished product exports including Isopropyl Alcohol. Post-CNY, a surge in shipping demand escalates freight rates, amplifying IPA delivery costs in the APAC regions.

Availability is directly impacted as existing Isopropyl Alcohol inventories deplete rapidly due to pre-CNY stockpiling and limited post-CNY production. Macroeconomic factors such as inflation and trade tensions complicate the supply chain further. The Isopropyl Alcohol market witnesses demand fluctuations during and after CNY, particularly in the healthcare and cleaning sectors, stressing an already strained supply chain. However, because of this Businesses are advised to proactively plan for these disruptions, securing supplies and minimizing risks. Staying informed about market trends and alternative sourcing options becomes crucial in navigating the post-CNY supply chain landscape for Isopropyl Alcohol. While the impact is temporary, its significance underscores the need for strategic planning and adaptability in the face of dynamic global events.

 At the same time, on the feedstock market side, adding to the price surge is the escalation in raw material costs, particularly Propylene, a key component in Isopropyl Alcohol production. A resurgence in downstream consumption, coupled with limited imports from its neighboring regions due to the tightening of market supply has bolstered the stability and resilience in the prices, further exacerbating the cost pressures faced by Isopropyl Alcohol producers.

Contrastly, for the second consecutive month, the Isopropyl Alcohol prices however are likely to remain unaffected in other regions, including the North American and European regions. This is further likely owing to the various factors including the persistent trade dispute contributing to a constant rise in freight charges, and the rising cost of feedstock primarily propylene supporting continued higher input charges aligning with heightened input energy costs. As a result of the continued drop in regional inquiries for Isopropyl Alcohol, merchants might pull back their future quotations and focus on clearing the current batch.

As stakeholders brace for the impact of these dynamics, proactive measures and strategic initiatives will be imperative to mitigate risks and ensure resilience in the face of evolving market conditions for Isopropyl Alcohol.

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