For the Quarter Ending March 2025
North America
The Isopropyl Alcohol market in North America experienced a sustained upward pricing trend throughout the first quarter of 2025. Strong demand from pharmaceutical, healthcare, and solvent-based industries acted as the primary catalyst for this increase. Consumption levels for sanitization, cleaning, and sterilization applications remained high, contributing to an intensified procurement environment.
Export prices continued to climb steadily, especially by March, as overseas demand strengthened, and regional supply-side constraints persisted. Seasonal factors also played a key role, with industries traditionally increasing Isopropyl Alcohol usage during this part of the year for hygiene-related purposes. While production costs faced upward pressure due to inflationary factors and logistical expenses, the decline in feedstock prices provided some relief to suppliers’ overall cost structures.
The region’s manufacturing activity displayed encouraging signs, as evidenced by a noticeable improvement in the manufacturing purchasing activity during February. However, persistent transportation bottlenecks and potential tariff-related concerns introduced pricing volatility. Despite these challenges, suppliers remained firm on higher price quotations, encouraged by expectations of sustained demand. Overall, North America recorded firm upward momentum in Isopropyl Alcohol prices throughout the quarter.
Asia Pacific
The Isopropyl Alcohol market across the Asia Pacific region exhibited a mixed pricing pattern throughout the first quarter of 2025. During January, prices registered a firm upward movement, underpinned by steady demand from pharmaceutical and personal care industries, alongside other consumer-oriented sectors. Market participants benefitted from consistent procurement activities, and despite ongoing global logistics difficulties, suppliers in the region managed to maintain a stable supply flow.
A strengthening of regional currencies against the United States dollar during this phase also assisted in containing import-related cost escalations and helped to stabilize overall market conditions. However, from February onwards the market sentiment softened noticeably. This shift was largely influenced by weakening manufacturing activity across the region, indicated by a decline in the manufacturing purchasing activity.
Demand from industrial and chemical processing sectors contracted, resulting in excess inventory and restricted off-take volumes. Suppliers, in response to rising stock levels and limited purchasing interest, opted for price reductions to maintain competitiveness in the market. Consequently, Isopropyl Alcohol prices across Asia Pacific followed an initial rise, before gradually easing towards the end of the quarter.
Europe
The Isopropyl Alcohol market across Europe experienced pronounced upward pricing momentum during the first quarter of 2025, driven by a combination of robust demand and constrained supply availability. Early in the quarter, logistical challenges intensified, particularly due to port congestion issues at major European shipping hubs. A notable incident involved a collision at one of the region’s largest ports and caused prolonged delays and increased transportation costs, which further supported price escalation.
Currency depreciation within the region also added to import-related expenses, compelling buyers to accept elevated price levels to secure essential inventory. Strong demand from pharmaceutical, cleaning, and personal care industries sustained significant pressure on suppliers, who struggled to meet increased consumption requirements amid logistical hurdles. Manufacturers responded to limited inventory and delivery backlogs by implementing successive price increases.
The overall market sentiment remained bullish, with additional purchasing activity observed as buyers sought to build safety stocks against future supply uncertainties. Consequently, Isopropyl Alcohol prices across Europe maintained a steady upward trajectory throughout the first quarter of 2025, reflecting the persistent imbalance between supply limitations and heightened regional demand.
For the Quarter Ending December 2024
North America
The U.S. Isopropyl Alcohol (IPA) market displayed a consistent bearish trend throughout October and December 2024, driven by weak demand from key sectors like pharmaceuticals and solvents. Despite fluctuating feedstock prices, particularly propylene, which were influenced by crude oil volatility, the market remained subdued due to insufficient demand-side support. In response to declining demand, manufacturers implemented aggressive pricing strategies, yet these efforts failed to stimulate sufficient purchasing activity.
A noticeable excess of inventory coupled with reduced procurement from downstream industries exacerbated the market’s downward trajectory, leading to sustained price drops. Additionally, the cautious stance of international buyers and weak market confidence further contributed to this trend. Price reductions were also fueled by competitive market conditions, with ample supply and increasing flexibility in negotiations.
Although occasional supply tightness due to maintenance shutdowns temporarily bolstered prices, the overall market conditions remained largely weak, with prices settling at USD 1277/MT by late December 2024. The market's dynamics reflected the broader economic challenges, including weak demand and fluctuating production costs, preventing any significant recovery.
Asia Pacific
In Q4 2024, the Isopropyl Alcohol (IPA) market in South Korea experienced fluctuating trends. In October, IPA prices remained stable due to strong downstream purchasing, coupled with rising quotations from key importing nations in the APAC region. This led to limited supply and increased transportation costs, with local traders raising prices after plant reopening. The critical role of IPA in essential industries helped maintain strong demand through the end of the month. However, by late November, the market saw a downturn. Weak demand from downstream sectors like pharmaceuticals and solvents caused a decline in IPA prices. The maintenance shutdown at LG Chem Ltd.'s plant at the end of November somewhere strained supply, but reduced demand outweighed these concerns. At the same time, lower feedstock prices, particularly propylene, added to the downward pressure. Despite steady demand from certain sectors, a "buy-as-needed" approach prevailed, limiting substantial orders. IPA prices settled at USD 1078/MT FOB Busan, with supply outpacing the overall demand side. While the market showed resilience, its future remained uncertain, reliant on the ongoing balance between supply and demand forces.
Europe
Following a similar market trend as that of other importing nations, during the entire Q4 of 2024, Germany's Isopropyl Alcohol export market experienced sustained price declines, primarily driven by weak downstream demand and an unfavorable cost environment A significant price decline throughout the quarter resulted from reduced production costs in key manufacturing countries, easing global price pressures. Buyers delayed purchases, anticipating further price reductions, while companies liquidated inventories to reduce storage costs and mitigate degradation risks, further pushing prices down. Additionally, the Euro’s depreciation against the USD elevated prices, impacting procurement at higher costs. Additionally, the availability of raw materials like propylene improved, easing production constraints. Despite rising propylene costs, market participants faced oversupply, with traders liquidating inventories, intensifying competition, and further driving prices down. By December, prices remained stable domestically but showed subdued purchasing activity. With export prices consolidating at around USD 1500/MT FD Antwerp, Belgium’s IPA market faced ongoing challenges amidst cautious market sentiment and an oversupplied market.
For the Quarter Ending September 2024
North America
Isopropyl Alcohol (IPA) pricing in the North American region for Q3 2024 has witnessed a notable increase throughout the entire third quarter of 2024, driven by several key factors. The market has been influenced by a continuous surge in demand from various sectors such as pharmaceuticals, personal care, and industrial applications.
With respect to the supply side is concerned, the prevailing inventory levels of Isopropyl Alcohol among market participants were notably lower compared to the overall demand. The market exhibited considerable activity, attributed to the increase in upstream crude oil prices, driven by heightened global freight costs leading to restricted spot flow for the feedstock side. This surge followed trade disruptions and storms that disrupted American oil production, while recent statistics indicated the nation's economy remained robust, signaling sustained fuel demand in the near future as well. Amidst tightening supply conditions, exacerbated by geopolitical tensions, producers of feedstock propylene managed to implement significant price hikes throughout the month.
However, the market witnessed a modest drop as the quarter ended in September 2024. While, compared to the previous quarter in 2024, there was a 2% rise, highlighting a continued positive trajectory, indicating a consistent upward movement underscoring the stability and growth witnessed in Q3 2024.
Asia Pacific
Moving forward towards the third quarter of 2024, the Isopropyl Alcohol (IPA) market in the APAC region experienced a notable decline in prices, reflecting a challenging period for the commodity with a steady upward trend in the middle only. Several factors influenced this downward trend, including weakened demand from key industries, surplus supply, and logistical hurdles. These elements combined to exert downward pressure on IPA prices, leading to a negative pricing environment. However, China saw the most significant price changes, with market dynamics driving prices lower. The quarter recorded a substantial average of 3.03% decrease from the previous quarter of the year, emphasizing the ongoing downward trend. Supporting the demand side, both regional and international market inquiries showed a significant slowdown, indicating a broader reduction in demand across various sectors. While fluctuations in the feedstock market side the overall trajectory remained varied demonstrating an overall supply-demand imbalanced scenario. Overall, witnessing a significant downward trajectory, Manufacturers and traders are cautiously managing their inventories, balancing between meeting current demand and preparing for potential market fluctuations. The short-term forecast for the IPA market in China remains cautiously optimistic and underscores the prevailing downward pricing environment in the region.
Europe
The Isopropyl Alcohol (IPA) market in Europe has concluded the third quarter of 2024 witnessing a downward trajectory with prices rising steadily until the middle of the quarter, driven by several key factors. Starting with the quarter, persistent high demand from critical sectors like pharmaceuticals, disinfectants, and solvents has been a primary driver, prompting end-users to stockpile in anticipation of potential supply constraints. Additionally, seasonal shifts and market behaviors have intensified this trend, with suppliers and traders leveraging elevated prices to enhance profitability. Rising freight costs have further added upward pressure on prices, while the euro's appreciation against the dollar has provided some relief to buyers supporting the upward trajectory in terms of regional trading sentiments. This trend continued until August 2024. However, the prices dropped considerably as September commenced. Market trading atmosphere concerning the various commodities continued to remain on the southerly side with inquiries arriving from the petrochemical sector constantly being muted. With respect to the Isopropyl Alcohol, downstream quotations continued to remain weak with participants focused on clearing their inventories irrespective of newer procurements. Furthermore, with a continuous decline in feed propylene prices, the overall production cost concerning the IPA continued to sustain on the downward side thereby supporting this month’s trend. As a result, with respect to the overall trend, prices reflect a downward trend of an average of 0.72 percent from the previous quarter of the year.
For the Quarter Ending June 2024
North America
In Q2 2024, the Isopropyl Alcohol (IPA) market in North America experienced discernible upward price momentum with a modest drop witnessed in the end only. Focusing on the United States, which saw the most pronounced price fluctuations, overall trends indicated a persistent increase in IPA prices.
Seasonality and external market dynamics also played a role, with the onset of summer typically bolstering demand for IPA-based products like disinfectants. Furthermore, marked by a complex interplay of rising feedstock propylene costs and fluctuating crude oil prices, have additionally exerted upward pressure on IPA production expenses, thereby resulting in an overall higher price throughout the quarter. Additional factors include supply chain disruptions and increased freight charges, further exacerbated cost conditions. However, the market witnessed a steady drop during the last month by nearly 0.69 percent from the past month. This drop in prices was solely based on weakened inquiries arrived from the end-users while balanced by overall supplies presented among the traders. Enterprises were actively ready to sell their product at a reduced profit margin to clear their inventories as soon as possible and prevent the product from further deterioration.
As a result, the quarter-ending price for IPA stood at USD 1289/MT FOB Texas as of the last week of June, driven by both supply-demand imbalance situations. This constancy in price elevation highlights a market adapting to higher operational costs while maintaining robust supply-demand dynamics. Overall, the upward trend in IPA prices this quarter underscores a market grappling with elevated input costs and logistical challenges while capitalizing on renewed consumption patterns.
Asia Pacific
Throughout Q2 2024, the Isopropyl Alcohol (IPA) market in the APAC region experienced a downward trend in pricing, significantly impacted by a confluence of factors. In South Korea, where the most pronounced price changes were observed, the IPA market reflected a substantial decline. Predominantly, the market faced weak downstream demand from sectors such as pharmaceuticals and solvents, compounded by a surplus of existing inventories. As a result, driven by weakened IPA consumption, a market trading atmosphere where downstream purchases were made on an as-needed basis, and new orders were in-sufficiently sold, remained on the southerly side. Additionally, heightened geopolitical tensions and subsequent disruptions in trade flows exacerbated logistical inefficiencies, leading to an oversupply scenario that pressured prices further downward. Concurrently, the appreciation of regional currencies against the dollar reduced the purchasing power of importing nations, thereby curtailing procurement activities. Additionally, the operational costs linked to feedstock propylene and upstream crude oil prices remained volatile, influencing the final IPA production costs and contributing to the overall bearish sentiment. However, the market rebounded yet steadily in the end of the quarter, where downstream inquiries from end-users particularly from pharmaceuticals and others rose steadily. While the inquiries arriving from the end-users were balanced by the market players. Overall, from the previous quarter in 2024, prices decreased by 4%, as market participants struggled to balance supply-demand dynamics amidst fluctuating manufacturing rates, trade disruptions, and downstream purchasing including the arrival of newer orders. Overall, the IPA pricing environment in Q2 2024 was decidedly negative, driven by overcapacity, weak downstream demand, and elevated production costs, particularly in the South Korean market. The confluence of these factors fostered a challenging pricing landscape, further reaffirming the market's bearish trajectory. With this, the quarter-ending price for IPA stood at USD 1165/MT FOB Busan as of the last week of June.
Europe
During the entire Q2 2024, the Isopropyl Alcohol (IPA) market in Europe experienced a stable pricing environment, influenced by several significant factors. Focusing on Germany, which saw the most notable price changes, the overall trend was marked by a stable sentiment. The market in Germany reflected seasonal stability, with minimal fluctuations in demand and supply. On the one hand, one of the primary reasons for the stability in IPA prices was the adequate supply levels across the region, which balanced the moderate demand from downstream sectors such as pharmaceuticals and solvents. Additionally, the cost of raw materials, including feedstock acetone and propylene, remained relatively stable, providing a predictable production cost environment that helped maintain steady IPA prices. On the demand side, downstream demand from regional and neighboring markets was subdued, leading to a low transaction volume and a volatile downward market trend. Shipments were slow, and inventory continued to remain at a higher level. While at the same time, the operating rate was stable, manufacturers were operating under pressure, making concessions and taking orders. Downstream replenishment was mainly based on demand, mainly supplying contract customers. Overall, by the conclusion of the quarter, the price of Isopropyl Alcohol FD Hamburg in Germany was recorded at USD 1499/MT. This quarter demonstrated a stable pricing environment, with the overall sentiment being positive for both suppliers and consumers, as predictable costs and steady demand facilitated smooth market operations.
