Isopentane in the US extended a sharp March rally as tighter supply, higher feedstock costs, and robust downstream demand tightened prompt markets. Maintenance on Gulf Coast isomerisation units and several refinery outages trimmed merchant availability, while firmer upstream costs from rising natural gas liquids and crude benchmarks added to pressure downstream margins for isopentane. Export demand from Latin America and renewed interest from Asia absorbed incremental flows in the latter part of the month. Construction-driven buying and restocking in EPS and insulation chains kept inventories tight, lifting spot sentiment. Downstream demand dominated, with construction users and EPS converters replenishing stocks ahead of peak activity, and automotive demand improving alongside higher vehicle sales. On the supply side, multiple refinery outages and force majeure events alongside logistics bottlenecks at key terminals limited prompt movements of isopentane. Market remains tight near term, with an uptick likely before seasonal moderation later in summer. Baseline outlook points to gains into April and May before easing.
