For the Quarter Ending September 2021
North America
The prices of Isopropyl Alcohol (IPA) witnessed a steep rise in the market of North America during the third quarter of 2021. Consistent rise in the overall demand for IPA from the downstream pharmaceutical industry strengthened the market outlook in the North American region during Q32021. Feedstock availability restored after leading companies like ExxonMobil and Dow Chemicals restarted the production of feedstock Propylene in mid-September after plant shutdowns caused by the hurricane Ida on the gulf coast of the US. FOB Texas price of IPA oscillated between $1560-1570/mt in September, showing nearly 3-5% increase since the start of Q3. As per market players, the price of IPA is likely to fluctuate within a set range in Q4.
Asia
The overall market outlook of Isopropyl Alcohol demonstrated an upward trajectory in the Asia Pacific region in Q3 2021. A hike in the demand was observed from the downstream disinfectant and solvent sectors in the domestic market across the region. In India, the prices remained stable in the first half of Q3, due to stable demand amid abundant availability. Despite declining COVID cases in India, demand for sanitizers from the end-user sectors remained strong, with improved awareness among people over prevention. The CFR price of IPA in India was last assessed at USD 1003 per MT during September. However, owing to the high cost of IPA, manufacturers kept opting for cheaper alternatives like Ethanol in order to safeguard their margins during the quarter. In addition, continuous decline in upstream Acetone prices pushed down the price curve of IPA.
Europe
In the European region, the market outlook of Isopropyl Alcohol experience mixed sentiments during Q3 2021. The prices of IPA witnessed a downtrend in the domestic market with offers declining from USD 1369/MT to USD 1217/MT during the quarter. Demand from the downstream disinfectant and solvent sectors remained firm throughout the quarter post-pandemic across the region.
For the Quarter Ending June 2021
North America
Isopropyl Alcohol (IPA) market of North America remained stable during this quarter, strengthened by sturdy demand from the domestic disinfectant and solvents sector. Despite of rising price amid the scarcity of feedstock Propylene in USA, the price of IPA stood rangebound and fluctuated within a narrow range. However, demand from the downstream solvent sector was recovering month over month, as post polar storm devastation, several plants resumed operations at usual capacities. In addition, demand from downstream derivative segments like MIBK, Isopropyl Acetate and Acetone also bolstered the demand for IPA during this timeframe in USA.
Asia
The Asian market showed mixed sentiment for Isopropyl Alcohol during this time frame, which varied month over month and country over country. In China, price of IPA kept fluctuating monthly, while the demand remained low from the downstream solvent and disinfectant manufacturers. The price fluctuation was observed due to frequent changes in the international demand and fluctuating demand for its derivative products in China. In India, similar scenario was observed, where despite of the second wave of pandemic in the country, demand from the disinfectant market dwindled effectively due ample stock availability. Under these circumstances, the price of IPA tumbled during the end of the quarter and hovered around USD 1375/MT and USD 1442/MT for China and India respectively.
Europe
Europe also had a stable market scenario for IPA for this quarter, backed by recovering demand from the downstream derivative segment. In addition, demand from hand sanitizers sector remained stable throughout the quarter, as the pandemic cases rose in several parts of the Europe. Moreover, demand from the derivative Acetone and MIBK remained strong, due to firm offtakes from the respective segments. Therefore, the price of IPA kept fluctuating in stable to high range and the supply remained sturdy enough to satisfy the overall need of the region.
For the Quarter Ending March 2021
North America
Extreme cold weather across the Gulf of US impacted several IPA plants of the region, however the demand from domestic market remained low. The overall demand for IPA was comparatively higher in the previous quarter but after subsequent fall in COVID 19 cases across the region, demand for IPA from sanitisers manufacturers reduced effectively. Despite of low demand for IPA prices were railing up due to huge rise in feedstock Acetone prices, which rose by around 20.6% and settled at USD 2425 per MT FOB Texas in March.
Asia
In the Asian Market, demand for IPA remained mixed, where some countries had a sufficient inventories level to satisfy the overall demand others struggled to maintain the supply activities across their country. Like in China, demand for IPA from sanitisers manufacturers was sturdy, but the inventories level remained low which created an extreme shortage of IPA in the country. In addition, extreme shortage of feedstock Acetone also effectively impacted the production in the China IPA market. During the quarter, average IPA prices in China rose by 22.29%, while in India it rose by 4.05% between January and March.
Europe
During Q1 2021, exports from Asia to Europe reduced effectively that tightened the supply of IPA in Europe. Meanwhile the demand remained consistent from sanitisers manufactures of the region, especially in second half of the quarter. Container shortage across Asia-Europe trade route, further reduced the feedstock availability across the region which pushed the prices to seek an upward trend. It is also anticipated that the supply of feedstock Acetone might improve from the US, which will improve the current IPA market condition in the upcoming quarters.
For the Quarter Ending September 2020
Asia
Asia Pacific Isopropanol (IPA) demand eased in July-Sep quarter after registering a historic Q2 surge as an outcome of the demand boom due to its growing usage in rubbing alcohol and hand sanitizers. Market sentiments turned bearish as IPA’s major downstream sectors viz. construction and automotive were still grappling with poor margins amid retreating economy. Prices were more or less stagnant throughout the quarter, resisting further gains due to tapering demand for disinfectant products as several Asian economies showed abrupt downfall in per-day COVID-19 cases. Moreover, the news of shutdown of a Chinese acetone-based IPA manufacturing unit for scheduled maintenance raised the Asian sentiments. Firming feedstock, Acetone largely contributed to the uptrend observed in the Southern Asia prices where IPA which were traded in the range of USD 1200-1300 per MT in the period.
Europe
Demand for IPA in the European Union seemed eager to find balance between ample inventories and resilient buying as manufacturing of hand gels and disinfectants started to recede in Q3 after surging exponentially in Q2. Europe is a net importer of IPA. Imports from Asia flooded the region starting May until September, where prices rose amid higher Acetone prices. Demand was heard further pressured as some hand-gel producers preferred substituting IPA with ethanol, a cheaper counterpart. Moreover, dampened industrial consumption due to muted activity in the paints and coatings further pressured the market sentiments as the second wave of COVID-19 was being heard wreaking havoc in the region.
North America
The third quarter showed mixed results as several small IPA producers in the region who started IPA manufacturing to pace with the COVID-led skyrocketing demand began to wind up their production. Several players started maintaining curtailed operating rates as the demand for hand sanitizers, which is still higher year on year, started falling as sanitizer production dipped considerably. FOB US Gulf prices of IPA, which remained the star product of 2020, surged to USD 1300 per MT amid higher shipping costs observed particularly for containers from Asia and firming Acetone values.
