For the Quarter Ending March 2024
North America
The Diisopropyl Ether (DIPE) pricing in the North America region during Q1 2024 has experienced a sluggish market trend. During this quarter, the market for DIPE in the region has witnessed weak purchasing activities along with slow market offtakes. The pricing trend in the USA, which has seen the maximum price changes, has been largely negative. Prices have experienced a downward trajectory, with a decrease of 9.1% in February 2024. This decline can be attributed to a reduction in producers' quotations and a decrease in consumption rates, leading to excess stocks in the market.
The availability of stocks has been ample throughout the quarter, with consistent supply from exporters. However, demand has been low, particularly from the household sector, which has seen a decline in expenditure. This has resulted in decreased orders from consumer product manufacturers, particularly in the stain remover and cleaning agent industries.
Looking at the overall trend, the DIPE pricing environment in the North America region has been bearish. Supply has been moderate, while demand has remained low. The market situation has been stable, with the availability of stocks being adequate. In conclusion, the pricing environment for DIPE in the North America region during Q1 2024 has been largely negative. Prices have experienced a downward trend, influenced by factors such as reduced quotations from producers and sluggish demand from buyers. The market has seen ample supply and stable conditions. The latest quarter-ending price for DIPE in the USA is USD 1985/MT.
APAC
In the first quarter of 2024, the pricing landscape for Diisopropyl Ether (DIPE) in the APAC region demonstrated an upward trajectory. The market prices of DIPE in China have seen a bullish trend, with prices increased by 5.85% from Feb 2024 to March 2024. This increase is attributed by the elevated demand from domestic buyers and the limited availability of supplies in the market. Additionally, the cost support for DIPE has been volatile due to fluctuations in feedstock propylene prices and moderation in upstream crude oil availability. Overall, the pricing trends in the APAC region have been influenced by factors such as demand from downstream industries, availability of feedstock supplies, and geopolitical uncertainties. However, the market has seen inclined demand from paint manufacturers and cleaning agent producers. In terms of seasonality, the pricing environment for DIPE has been affected by events such as the Lunar New Year holidays, which led to reduced trading activities and increased logistics costs. Additionally, the availability of supplies has been impacted by production cuts and supply chain disruptions. However, there has been a notable decline in prices compared to the previous quarter in 2024, recorded at 6.7%. Conclusively, in Q1 2024 the price for DIPE in China was USD 2080/MT - FOB Qingdao.
Europe
During the first quarter of 2024, Di isopropyl Ether (DIPE) prices in the European region experienced strong market trend, shaped by multiple influencing factors. Primarily, demand for DIPE remained robust, propelled by rise in purchasing appetite, which placed considerable pressure on the supply chain. This surge in demand contributed to a continuous rise in DIPE prices throughout the period. Essential commodities such as DIPE were strategically marked up during periods of peak demand, exacerbating the trend towards higher prices. Prices increased more markedly in the latter half, underscoring the sustained demand from the personal care industry and ongoing supply scarcity. In conclusion, the DIPE pricing environment within the European region, displayed a clear upward trend during the first quarter of 2024. Factors such as heightened demand, supply chain disruptions, and strategic seasonal pricing collectively drove this increase, highlighting the complexities and responsiveness of the market to various economic stimuli.
For the Quarter Ending December 2023
North America
The Di Isopropyl Ether price trend shifted in the North American market during the final quarter of the year. Initially, the cost support fell from upstream Acetone in the producing countries amid pessimistic market sentiments from downstream buyers and increased availability of supplies.
It reduced the production costs of DIPE amid the weak demand for solvent from end-user industries, such as paint and cleaning agent manufacturers, due to reduced procurement activities and lower consumption rates amid contraction in regional manufacturing sector activities, which negatively impacted the prices of Di Isopropyl Ether. Another significant factor that influenced the market was the availability of supplies.
While the production rates remained firm, the supply rates were moderate. In the mid-quarter, the price trend altered amid the decrease in the Panama Canal water levels due to the El Nina effect and dry weather conditions, resulted in a decline in Cargo rates and impacting the product deliveries in the regional market. Simultaneously, logistics companies issued restrictions on shipments through the Mississippi River due to the reduced water levels, which affected product shipping to the domestic market. The product supply rates remained moderate, and prices remained firm till the end of the quarter.
Asia
The Di Isopropyl Ether prices witnessed an overall bearish trend in the Asian region during the conclusive quarter of 2023. At the beginning of Q4, supplies were excessively available in the regional market due to declined exports to the importers. The decrease in demand for paint thinner and stain remover reduced the solvent consumption rates in the downstream industries, and inventory levels rose in the market. During the mid-quarter, feedstock availability improved amid reduced offtakes from Glycol industries and a reduction in the upstream Naphtha and Crude Oil prices after the resumed refinery operations in the North American region. On the contrary, transaction rates and offtakes remained low in the domestic market as orders declined due to the reduced procurement activities and consumption rates of solvent from regional paint manufacturers. Towards the end, prices decreased marginally amid depressed demand from the buyers and the increase in production rates of Isopropyl Alcohol due to increased demand for hand sanitizers in the region, which raised the DIPE production rates, and supplies remained firm in the market. On the other hand, the offtakes were sluggish from cleaning agent and stain remover product manufacturers.
Europe
Like the North American region, the Di Isopropyl Ether price trend shifted movement in the European region during the fourth quarter of 2023. At the beginning of the quarter, production rates were firm, and the cost support fell from upstream Acetone amid pessimistic demand from downstream buyers and increased availability of supplies. At the same time, the demand for the solvent from end-user industries, such as paint and cleaning agent manufacturers due to reduced procurement activities. The Eurozone Manufacturing Purchasing Manager's Index also dropped throughout the quarter, indicating a contraction in the manufacturing sector activities, and consumption rates remained feeble from downstream industries. In the mid-quarter, the stressed availability of Propylene inventories amid tight supplies from North American exporters amid maintenance activities at Propylene dehydrogenation units impacted the production rates. The demand-supply dynamics remained moderate in the region till the end of the quarter. At the end of the quarter, prices increased negligibly amid weak demand and affected supplies from exporters. The Houthi Rebels in Yemen attacked the vessels in the Red Sea, causing an increase in ship traffic and commercial vessels rerouted to the Cape of Good Hope, which increased the ship traffic, and the availability of supplies remained tight in the region.
For the Quarter Ending September 2023
North America
The Di isopropyl Ether prices showcased mixed sentiments in the North American region during the Q3 of 2023. Initially, demand depressed for paint thinners due to weak activities in the construction sector. Simultaneously, logistics duration increased due to affected US shipping and freight routes amid the decline in Mississippi and Ohio river water levels and delayed shipping routes activities through the Panama Canal. However, during the mid-quarter, supply rates remained tight from suppliers due to declined production rates amid affected supplies of upstream Propylene due to a decline in global inventories of Crude oil. The hike in bank interest rates by the Federal Reserve Bank to cool down the rising inflation resulted in a decline in demand from buyers, causing a slowdown in the economic growth of the region, and offtakes remained moderate. Then, Hurricane Idalia, on August 30, 2023, made landfall and caused a hindrance in supply rates. However, the production increased, and export rates increased from exporters towards the end of the quarter, and prices dropped marginally in the region.
Asia
In the Asian region, Di isopropyl Ether prices shifted movement during the 3rd quarter of 2023. Initially, prices rose noticeably amid consistent orders from buyers and stressed availability of supplies. Simultaneously, the disruption in supply chain activities due to the occurrence of regional storms and typhoons like Doksuri and heavy rainfall increased the logistics duration. Consequently, prices rose marginally during the mid-quarter amid average demand from cleaning agents and paint manufacturers. Meanwhile, typhoon Soala made landfall in the region in Early September 2023. The operating rates remained moderate amid weak availability of upstream Propylene supplies amid upstream Crude Oil production cuts by OPEC+ and Russia. The availability of supply rates remained average, and demand declined from cleaning agent manufacturers. The procurement activities remained low from buyers before the arrival of festivals and holidays in the region, and prices fell towards the end of the quarter. At the same time, production costs eased due to the stabilization in Crude Oil prices and firm production rates of IPA in the region.
Europe
Like the North American region, the Di isopropyl Ether prices oscillated in Europe during the Q3 of 2023. At the beginning of the quarter, suppliers dropped the prices marginally amid low demand from buyers and stable supply rates amid moderate logistics activities during the summer holidays in the region. The high energy prices and hike in bank interest rates by European banks resulted in a decline in demand from buyers, causing a slowdown in the Eurozone growth. During the mid-quarter, prices inclined marginally due to a decline in production rates of Isopropyl Alcohol amid limited availability of feedstock Propylene and Acetone supplies because of upstream Crude Oil production cuts by OPEC+ and Russia. Then, Isopropyl Alcohol production rates increased in the region. The supply rates of DIPE improved towards the end of the quarter. Meanwhile, the hike in bank interest rates by the European Central Bank resulted in declined demand from buyers. The product offtakes fell in the market, and suppliers dropped their quotations at the end of 3rd quarter of 2023.
For the Quarter Ending June 2023
North America
The Di Isopropyl Ether price movement shifted sentiments during the Quarter 2 of 2023. Initially, the price trend was firm, and prices rose due to an increase in production costs amid a rise in the Isopropyl Alcohol prices due to affected production rates amid the low availability of the upstream Acetone. Simultaneously, the increase in labor costs amid shortages of labor due to the rise in recession in the region impacted product prices. However, supply rates improved during the mid-quarter from the international DIPE producer, and prices started declining amid a drop in demand for the product from the downstream Paint sector and sluggish activities in the construction sector. Simultaneously, the increase in the Propane stocks and reduced upstream Propylene prices reduced the production costs of DIPE. Towards the end of the quarter, prices fell amid ample availability of supplies and cautious buying activities by buyers due to a hike in bank interest rates by the Federal Reserve, which decreased the product prices in the market.
Asia
The Di Isopropyl Ether price trend oscillated in Asia during Q2 of 2023. Initially, the prices increased due to the cost support from upstream amid volatile Crude Oil prices and high feedstock prices. Meanwhile, the price trend showcased mixed sentiments in Asia during the mid-quarter. The prices decreased in the Key producer China amid improvement in inventories and depressed offtakes from the domestic buyers due to dampened demand from the paint and coating industries due to a drop in consumption rates from the construction sector. However, prices rose in India amid improved demand from downstream paint industries, stressed supply rates from China exporters during the Labour Day Holidays, and increased production costs amid a rise in the Isopropyl Alcohol prices. Towards the end of the quarter, due to limited availability of supplies because of maintenance shutdown activities at Kellin Chemical, in China, with an Isopropyl Alcohol production capacity of 16333 TPM, during the entire month of June 2023. Consequently, the Di Isopropyl Ether prices remained firm and rose noticeably in the region.
Europe
In the European region, the Di Isopropyl Ether fluctuated during Q2 of 2023, like the North American region. At the beginning of quarter 2, the price trend was stable amid volatile upstream prices and an escalation in the Isopropyl Alcohol prices. However, from the mid-quarter, supply rates improved from exporters, while offtakes declined from the downstream Paint sector due to depressed activities in the regional construction sector. Simultaneously, the plunge in the Isopropyl Alcohol prices from the mid-quarter reduced the production of Di Isopropyl Ether. Furthermore, the contraction in the DIPE price intensified at the end of quarter 2 of 2023 amid firm availability of supplies and reduced buying activities, which raised the domestic inventory levels. The hike in bank interest rates by the European Central Bank and the Bank of England to curb rising inflation made domestic buyers conscious while making purchases, and they avoided any unnecessary trading activities. Consequently, the producers revised their quotations negatively to improve the offtakes.
For the Quarter Ending March 2023
North America
In the North American region, the Di isopropyl Ether price trend remained stagnant during the 1st two months of the quarter. Initially price trend was stagnant amid stable demand-supply dynamics. Then, the production rates of the Isopropanol rose during the mid-quarter, which improved the supplies of DIPE. Simultaneously, the supply chain activities improved, which raised offtakes amid rising inflation and high-interest rates by Federal Reserve. However, in the final month of Q1, the price trend showcased bearish movement, and prices fell due to depressed demand for solvents in the downstream paint industries and conscious buying activities by producers, which raised the domestic inventory levels.
Asia
The Di isopropyl Ether price trend showcased mixed sentiments in the Asian region during Q1 of 2023. At the beginning of the quarter, the prices declined amid a reduction in upstream costs. During the mid-quarter, prices rose in China amid improved consumption with ease in covid restrictions and a rise in feedstock Propylene costs due to stressed availability and volatile upstream crude oil prices amid increased sanctions on Russian products. At the same time, prices fell in India due to depressed orders from downstream industries. In the final month of the quarter, prices rose in India amid weak production rates due to the plant shutdown at Deepak Phenolics. On the contrary, prices fell in China due to weak offtakes and surplus availability of supplies.
Europe
The DIPE price trend shifted sentiments in the European region during 1st quarter of 2023. In the initial month of Q1, prices were firm amid stable demand-supply dynamics and reduced run rates. However, in the mid-quarter, prices rebounded and rose slightly amid the stressed availability of feedstock Propylene supplies after increased sanctions on Russian Petroleum products, which affected the production rates. Then again, in the H2 of the quarter, the price trend showcased bearish movement due to surplus availability of supplies and sluggish offtakes. At the same time, the decrease in input costs due to the decline in Natural Gas prices further eased the cost support.
For the Quarter Ending December 2022
North America
The Diisopropyl Ether prices shifted sentiments during the final quarter of 2022. Initially, prices increased amid high inflation and moderate product supplies. Then the price trend shifted, and product prices decreased in the North American region. From the mid-quarter, feedstock Propylene prices decreased on the back of firm inventory levels and a reduction in WTI Crude oil prices. Production rates remained firm, and due to this, production costs of DIPE decreased noticeably in the H2 of the quarter. Towards the end of the quarter, feedstock IPA prices plunged again and negatively impacted the DIPE prices amid moderate to low consumption levels from the end-users.
Asia
In Asia, Diisopropyl Ether prices showcased mixed sentiments throughout quarter IV of 2022. In the first month of the quarter, prices soared in Asia amid a spike in feedstock Isopropanol prices and affected trade activities during the Golden Week holidays in China. Then during the mid-quarter, the Diisopropyl Ether price trend shifted, and prices decreased on the back of improved production and trade activities. Due to covid related restrictions, operational rates were hampered in the region. Towards the end of the quarter, global freight charges decreased, and DIPE prices remained stable to low amid moderate production rates and destocking practices by producers.
Europe
Diisopropyl Ether prices fluctuated in Europe during quarter IV of 2022. Initially, the product prices rose marginally due to increased production costs amid input supply shortages because of an explosion at the Beixi pipeline. During the mid-quarter, prices decreased due to weak offtakes by solvent industries. Simultaneously, DIPE production rates were hampered due to supply shortages of feedstock propylene and acetone and an increase in input prices. Towards the end of the quarter, DIPE prices decreased again due to a stabilization in upstream IPA and a contraction in the input costs due to weak Natural Gas demand than anticipated amid sluggish consumer offtakes for cleaning products during the latter half of the quarter.
For the Quarter Ending September 2022
North America
A shifting price trend of Diisopropyl Ether was observed in North America during Q3 of 2022. For the first two months, the product prices decreased in the region due to an ease in production costs after a decrease in the upstream propylene prices. However, in the quarter's final month, the price trend revived due to an improvement in demand sentiments by end-users. Additionally, a consistent reduction in feedstock Sulphuric acid costs further relieved the cost pressure on the production values earlier this quarter. After witnessing a decrease of 7.8% in the previous quarter's prices, USA's DIPE prices settled at USD 2820/MT at the end of Q3 of 2022.
Asia
Diisopropyl Ether (DIPE) prices fluctuated during the 3rd quarter of 2022 in the Asian region. Initially, the prices decreased, continuing the previous quarter's trend on the back of ample material availability amid no significant demand from the end-user industries. However, in the final month of the third quarter, the DIPE's price trend revived, and its prices inclined upward due to an increase in feedstock Sulphuric Acid costs which raised the product's production costs. At the same time, the demand increased for the solvent from the paint manufacturers. At the end of Q3, Diisopropyl Ether prices in China settled at USD 1935/MT after witnessing a significant quarterly decrease of almost 8%.
Europe
Following the trend of other regional markets, the Diisopropyl Ether price trend fluctuated in the European region during the 3rd quarter of 2022. Initially, the product's costs decreased due to a reduction in the production cost and stable demand sentiments by the consumers after the inflation caused by high commodity and input values. However, towards the end of the third quarter, the DIPE's price trend fluctuated, and its prices increased due to an escalation in its feedstock Sulphuric acid prices. While there was no significant improvement in the domestic demand, the international orders were firm. At the end of quarter 3 of 2022, Diisopropyl Ether prices in the Netherlands settled at USD 3120/MT.
For the Quarter Ending June 2022
North America
In the North American region, the price of Di isopropyl Ether contracted throughout quarter 2 of 2022. In the H1 of the quarter, the price of the DIPE decreased marginally due to stable feedstock petrochemical propylene costs. Then the prices dropped significantly during mid-quarter, and till the end of the quarter, the prices were dropping only. However, the region's energy and fuel costs rose, which supported the cost pressure. The demand for DIPE remained consistent from the domestic pharma sector but was average from solvent industries due to which product offtakes were average from the market during Q2 of 2022.
Asia
The Asian region witnessed a bearish price trend of Di isopropyl Ether throughout quarter 2. Consistently contracted feedstock Propylene prices in the region due to Russian Crude Oil imports at lower costs negatively impacted the product's production costs. The demand for the product remained slow from end-user industries of the paint and pharma sector. Also, after the three months hiatus and the ease of lockdown in China at the end of Q2, stock inventories were excessively available because it is a petrochemical by-product. So, product prices plummeted by almost 12.6% from the previous quarter as the product offtakes remained average in the regional market.
Europe
Di isopropyl Ether's price movement remained sluggish in the European region, and prices slummed throughout the Q2. At the beginning of the quarter, feed prices surged, boosting the production cost of the product. Then feedstock Propylene costs stabilized and started decreasing until the end of the quarter, negatively impacting the product's prices. Energy and gas costs rose significantly due to post-war supply shortages from Russia and America and induced cost pressure. Additionally, the demand sentiments from Oxo-alcohol producers slackened in the region towards the end of the quarter, due to which product offtakes remained moderate in the market. Product supplies also remained affected due to container shortages at the European ports.
For the Quarter Ending March 2022
North America
Diisopropyl Ether prices surged in the North American market during the 1st quarter of 2022, backed by firm demand from end-user industries and firm upstream costs. Enquiries for Diisopropyl Ether from fuel additive, paint, and textile industry surged throughout the entire quarter, consequently leading to its enhanced price value. Besides, fuelled prices of upstream propene further propelled the prices of Diisopropyl Ether. Furthermore, volatile crude prices, surged freight charges, continued labour shortage, and ports congestions readily contributed to the price hike of Diisopropyl Ether in the domestic market. Hence, the prices of Diisopropyl Ether in the USA assembled at USD 2300/MT CFR Texas during March.
Asia Pacific
The Asia-Pacific region followed the pricing trend of North America and showcased an upward trajectory in the prices of Diisopropyl Ether during the 1st quarter of 2022. The prime factors behind this price surge were strong demand from the fuel additive and paint industry which exacerbated the price value of Diisopropyl Ether in the considered period. Furthermore, increment in feedstock propene prices was another factor that contributed to the price rise of Diisopropyl ether in the region. Moreover, skyrocketed crude oil prices and continued port congestions further pushed the already augmented Diisopropyl Ether Prices. In India, Diisopropyl Ether Ex-Depot Mumbai prices escalated from USD 3001.43/MT in January to USD 3132.78/MT during March.
Europe
The European countries witnessed a price hike in the prices of Diisopropyl Ether during the quarter 1st of 2022, on the back of robust demand from end-user industries and higher upstream costs. The demand for Diisopropyl Ether, which majorly comes from the Fuel additive and Paint industry, surged in the 1st quarter, escalating the prices of Diisopropyl Ether. Meanwhile, the enhanced propene prices in the regional market increased the production cost, leading to volatile Diisopropyl Ether prices. Furthermore, Continued port congestion, shipping containers shortages, incremented crude prices, and raised freight charges pushed the Diisopropyl Ether prices upwards. Conclusively, In Germany, the assessed prices of Diisopropyl Ether were USD 2050/MT FOB Hamburg during March.
For the Quarter Ending December 2021
North America
The Diisopropyl Ether market continued to project an unabated rise in prices throughout Q4-2021. The supply starved propylene feedstock market, resulting from production facilities that still carried the dents from Ida hurricane damage in Q3, exerted the cost pressures on the Diisopropyl Ether productions. Supply disruptions and scarcity of vessels on ports hampered the export frequencies thereby impacting the profits margins of the manufacturers. However, the fall in the feedstock prices following the USA government’s strategic release of upstream crude oil, and dullness in demand from industries apart from the pharma sector after the mid-quarter, imparted bearishness in the Diisopropyl Ether price trends there onwards. The prices of Diisopropyl Ether during December settled around USD 2830/MT DEL USA.
Asia
Pressurized with uncertainties in propylene feedstock availability, the Asian Diisopropyl Ether market exhibited fluctuations in price trends under the impact of local factors that varied region wise. China’s Diisopropyl Ether prices seesawed in Q4-2021, trending higher during October owing to the production constraints on strict compliance with the government’s “Dual Control Policy”. The prices cooled a little during November with improvement in feedstocks supplies, notching high again to USD 820/MT FOB Qingdao in December. The reinstated gains came from surging demand from the pharmaceuticals and paints industry coupled with delayed feedstock shipments due to tightening zero-covid policy on ports. In India, the Diisopropyl Ether prices recorded week-on-week improvement till mid-quarter owing to the demand driving fundamentals in the festive period. However, the sudden drop in paints sector demand post-festive period, as well as restricted market movements towards the quarter-end prompted the traders to roll back their offered prices which settled around USD 2329/ MT Ex-Mumbai during December.
Europe
The supply deficiency of propylene feedstocks and critically short energy inventories during Q4-2021 exerted upward pressure on the manufacturing cost of Diisopropyl Ether in Europe. The clogged intra-Europe, US-Europe and Asia-Europe arbitrage routes owing to container shortage mayhem hampered the export activities thereby exacerbating the tightness in the Diisopropyl Ether market. On the other hand, the demand fundamentals in downstream paints and coatings, as well as pharmaceutical industries showed optimism, encouraging the buyers to procure volumes at premium prices. Despite the indications of normalization in supplies of feedstocks after the mid-quarter, the offered Diisopropyl Ether prices reached the year’s highest value of USD 3175/MT FOB Hamburg during December with a boom in pharmaceutical applications amid the resurgence of Covid cases.
For the Quarter Ending September 2021
North America
The market outlook of Diisopropyl Ether witnessed an upward trajectory in the North American region during the third quarter of 2021. The demand for Diisopropyl Ether has remained strong from downstream sectors like the paints, waxes, dyes, and resins industry. An improvement was observed for refinery utilization in the US during Q3 2021. Supply of upstream feedstock like propylene with isopropyl alcohol was sufficient for the production of DIPE, hence the supply of DIPE remained healthy throughout this quarter. Average FOB price of DIPE in the Americas was assessed around $2130 per MT during Q3 2021.
Asia Pacific
The prices of Diisopropyl Ether (DIPE) rose effectively across the Asia Pacific region in the 3rd quarter of 2021. In the Indian market, the pricing trend of Diisopropyl Ether kept its upward trajectory during the first week of July. Demand for solvents in the Indian market was heard improving w-o-w, as the industrial activities rebounded after an ease in COVID-related restrictions in the country. In addition, tight supply, high freight costs, and reduction in demand for co-product IPA also influenced the availability of the product in the Asian market. Thus, prices of DIPE in India climbed up again and settled at USD 2621 per MT during the final week of September 2021.
Europe
In the European region, the domestic market strengthened in the Q3 2021 as the crackers and refineries improved across the European region. The price of Diisopropyl Ether (DIPE) witnessed a significant rise in the European market backed by the increased demand and supply shortages in Q3. Shipments from the US were disrupted after the occurrence of Hurricane Ida landfall which caused the shutdown of several manufacturing units during the 3rd quarter. Demand remained firm from the downstream solvents sector in this quarter as well.
For the Quarter Ending June 2021
North America
In the second quarter of 2021, supplies of Diisopropyl Ether (DIPE) improved along with better feedstock availability due to improved operational rates at all Propane Dehydrogenation plants in the Gulf coast region which supported the production of DIPE. The availability of key upstream Propylene surged with the supply chains recovering from the impact of polar winter storm Uri. Market outlook also improved compared to the previous quarter and stabilized by May. Demand outlook in the North American region was buoyed by piled-up demand as a solvent from the paints, waxes, dyes, and resins industries to cope up with the rising enquiries from the building and construction sector.
Asia Pacific
Supplies of DIPE were tight in the second quarter of 2021 due to limited availability of key upstream Propylene, as several refineries and PDH units in China were on a turnaround in the first half of the quarter. Amidst rising inflation rate in China, the prices of raw material continued to maintain pressure over the producer’s margins till May which imparted wait and see sentiments among the DIPE buyers in China. Tight supplies and logistic constraints continued to maintain upwards pressure over Diisopropyl Ether prices in India. Prices of DIPE rose in the first half of the quarter and then attained a stagnancy with Ex-Depot Mumbai discussions settling at USD 2471 per tonne in June.
Europe
DIPE supplies in the European region showcased mixed sentiments as several PDH units, crackers and refineries were on a maintenance turnaround during the first half of the second quarter which limited the availability of key upstream chemicals and operational delays of DIPE. However, imported shipments from the US increased after the industrial infrastructure recovered from the impacts of the winter storm Uri. Demand outlook remained firm from the solvents sector strong with rising enquiries from the downstream producers as the contractual volumes recovered until May ending. Due to better demand and restricted supplies, DIPE pricing trend continued to stay firm in the European market.
For the Quarter Ending March 2021
North America
During Q1 2021, the supplies of Diisopropyl Ether (DIPE) were tight in the region, as the stocks were bounded by the margins from the upstream markets. Supply tightened as shutdown of several petrochemicals production units due to deep freeze weather in the US gulf region disrupted production levels. Major upstream plants such as LyondellBasell, ExxonMobil and INEOS olefins declared shutdown in mid-February amid the extreme weather conditions further resulting in multi-fold surge in the prices of DIPE in the North American markets. After mid-March, traders saw increment in demand from the pharmaceutical, textile and several other downstream sectors.
Asia-Pacific (APAC)
The supply of DIPE remained balanced in the Asian region during the first quarter, owing to the addition of new propylene facilities in China, followed by the resumption of LG Chemicals facilities in the South Korea including the upstream producer Yeochun NCC (YNCC) which restarted its Propylene unit during the second half of Q1 2021. However, some Asian shipments were diverted to fulfill the western demand for better netbacks curtailed the supplies to other region. Ex-Works prices of DIPE in China were assessed at USD 1505 per tonne in March.
Europe
The supply of DIPE in the European region remained tight throughout the first quarter, as a repercussion of reduced production from northwest regional plants amid the shortage of key feedstock due to transportation lag. The situation got aggravated, as BASF declared planned turnaround in its ether facility. However, the demand persisted a healthy trend throughout the quarter from the pharmaceutical sector. The export trend shifted from the US to Asian suppliers, due to the extreme weather conditions in the US declined the transport of cargoes. In terms of prices, Europe remained to be the most feasible region.
For the Quarter Ending December 2020
North America
With the consistent increment in the prices of feedstock Propene amidst its tight supply in Q4 2020, the prices of Diisopropyl Ether also surged in the concerned quarter. Its demand increased in comparison to the supply as most of the manufacturing companies restrained to operate their plant at full capacities under the fears of demand uncertainty. Amidst the regional supply crunch and rising demand, imports of the products for fulfilling the demand in the pharmaceuticals and fuel additive considerably increased.
Asia
Demand for Diisopropyl Ether in the Asian market regained stability due to ease in lockdown in most of the countries in Asia like China, South Korea, and India. Following the ease in lockdown, the demand for automotive increased due to which the demand for Diisopropyl Ether as an anti-knocking agent revived in Q4 2020 in comparison to the rest of the year. The demand-supply gap of the product remained balanced throughout the year as the supply of Diisopropyl Ether was stable following the resumption in activities of various manufacturing facilities across the region. As 2021 is expected to be a positive year for the automobile industry, the demand for Diisopropyl Ether is expected to boom in Asia.
Europe
Both demand and supply for Diisopropyl remained stagnant in Q4 2020 following a partial lockdown in the region following the fears of new strain of Coronavirus. Although the demand for petrochemical and automotive industry remained low, its consumption from pharmaceutical Industry for research and development appreciably revived. Since various industries went off stream under concerns of losses, majority of the demand in the region was fulfilled by the imports from Asian countries like China. The prices of the product were surged due to minimal supply from domestic players.
