Prices Of Isopropyl Alcohol rises backed by High Demand Globally
- 12-Apr-2022 9:01 AM
- Journalist: Kim Chul Son
Rising Upstream Crude prices and their derivatives, the ongoing geopolitical tension disrupting the trade, and the increasing demand from the end-use industries has resulted in a rise in the Isopropyl Alcohol (IPA) prices in the global market.
China is the major exporter of Isopropyl Alcohol in the global market. The disruption caused on the Chinese ports due to the resurgence of COVID has led to a delay in the trade, which resulted in upward trajectory movement in the Isopropyl Alcohol market. Moreover, the Russia-Ukraine conflict have caused a spike in crude and natural gas costs, which has impacted raw materials like acetone and propylene, further affecting Isopropyl Alcohol values. According to the ChemAnalyst data, the price of Isopropyl Alcohol in China settled at USD 1155 per MT on week ending 8th April.
Isopropyl Alcohol with 70% concentration is highly used in the production of common alcohol swabs and wipes. Also, it is widely used in downstream cosmetics, paints and sanitizer which is of high demand from domestic market. Furthermore, due to its preservative and sanitizing properties, the epidemic of COVID increased the demand for hand sanitizers, driving up the price of Isopropyl Alcohol. Besides, Isopropyl Alcohol is employed in end-use Chemical, Pharmaceutical, Cosmetic, and Automotive sectors, and the demand from these industries has influenced the price of Isopropyl Alcohol.
High competition in the cosmetic and personal care business has further contributed towards strong prices in the Isopropyl Alcohol market. In addition, the use of Isopropyl Alcohol as a high-quality flavouring agent in the food industry increased the value of isopropyl alcohol in the regional and international markets.
According to ChemAnalyst, "Growth of Pharmaceutical industry in Asia pacific region might affect the price of Isopropyl Alcohol. Moreover, the rising Upstream Crude and feedstock Acetone and Propylene prices may further impact the Isopropyl Alcohol market. Furthermore, the rising demand from the downstream cosmetic and personal care, chemical and automotive industries is expected to pressure Isopropyl Alcohol 's cost."