Isopropyl Alcohol Prices on the Rise in North America Amidst Increasing Demand

With the beginning of August 2023, the prices of Isopropyl Alcohol demonstrate a slight upward trajectory across the North American region, primarily in the United States. Rising cost pressure from the upstream market, a surge in downstream demand, and mounting trading activities are some of the factors driving the market trend of Isopropyl Alcohol.

Isopropyl Alcohol prices in the United States have steadily increased due to a moderate rise in domestic inquiries and a surge in consumption from the downstream Pharmaceutical, Personal Care, and Electronics sectors. Additionally, an upward progression of feedstock propylene prices in early August further supported this upward price trend for Isopropyl Alcohol. However, as per the knowledge, the United States imports Isopropyl Alcohol from South Korea, apart from Canada, which results in another factor contributing to its surging prices. As the supply activity from South Korea was weak since the previous month and, on the contrary, downstream demand for Isopropyl Alcohol was strong in the exporting nations. Due to inadequate supply for Isopropyl Alcohol to meet the demand, the ongoing war in Ukraine has disrupted the global supply chain. Furthermore, it is expected that the supply activity from South Korea until the very end of August will remain weak, while the demand for Isopropyl Alcohol is expected to remain strong, but the supply is unlikely to improve significantly. This is because the factors that led to the weak supply in July 2023 are still in place.

Apart from that, Super Typhoon Doksuri in the Pacific Ocean affected the exporting activity in the USA. The Typhoon resulted in widespread damage in South Korea and Japan, disrupting supply chains and significantly delaying shipments. This had a knock-on effect on US exporting activity, as many businesses rely on components and materials from these countries. The impact of the Typhoon on US exporting activity is likely to be felt for several months, as businesses are likely to review their supply chain management practices to mitigate the risk of future disruptions. In the interim, crude oil costs on the upstream front in the US market have been experiencing an upward trend following OPEC's production cuts. As of the first week of August, the prices of Crude oil across the US market were settled with a consistent hike of 2.77 percent.

Moreover, as per the ChemAnalyst forecast, the price of Isopropyl Alcohol is expected to witness a mixed price trajectory. Isopropyl Alcohol demand from the downstream sector is likely to drop down in the forthcoming month, while the inventory level is projected to remain on the upper side, which might balance the overall requirements across the nation.