For the Quarter Ending June 2023
North America
During the second quarter of 2023, the values of Isopropyl Alcohol (IPA) exhibit a descending pricing sentiment in North America, mainly in the USA. Although until the end of April, the prices of IPA continued to follow the market trajectory of the previous month as a result of a consistent surge in domestic inquiries from the pharmaceutical, chemical, and preservative sectors. The constant rise in consumer demand, steady trade momentum resulting in persistent manufacturing activity, and a decline in ocean freight charges all contributed to Isopropyl Alcohol's favorable market trend during the start of the second quarter. However, moving toward the middle of Q2, the prices of IPA dropped considerably. Diminished upstream propylene prices supported by weaker domestic inquiries kept the market on the south side till the end of the Q2 of 2023. In response, market players focused on reducing their stockpiles. Furthermore, the global high supplies of both upstream and downstream sectors also affected the demand for US IPA. Suppliers were not in a desperate position to sell, and the additional demand resulting from the pharmaceutical sectors slowed down the pace at which prices were falling.
Asia Pacific
In the second quarter of 2023, across the APAC region, primarily in China, Thailand, Malaysia, and South Korea, the prices of Isopropyl Alcohol (IPA) depicted a descendant trend. Throughout the month of April, the prices followed the market trend of the previous month and remained on the upper side in all the regions, while as May commenced, the prices went down considerably in all the regions as a result of lower purchasing power and greater corporate product stockpiles which was the primary factors stifling market fundamentals except South Korea where the demand continued to surge until the final weeks of May. However, the Consumer Price Index in South Korea for the entire month of May remained constant at 111 index points, demonstrating an optimistic market sentiment. On the other side, upstream propylene prices kept falling in Thailand, which contributed to the weaker market trend for IPA for May. Moreover, with the termination of Q2, the overall market outlook for IPA in all the regions moved towards the negative side due to a substantial decrease in its offtakes from the international and domestic markets. Also, the weaker upstream propylene market and declining trade activity from exporting countries such as China and South Korea remained weak this month.
Europe
During the second quarter of 2023, the prices of Isopropyl Alcohol (IPA) across the European region, primarily in Germany, France, Belgium, and the Netherlands, showcased a consistent decremented trend, although the prices remained on the upper side until April 2023. Due to a steady decrease in domestic inquiries and a significant decrease in importing momentum, IPA prices continued to trend south in May. Due to higher inventory levels among the traders, they decided to reduce their inventory at a slower pace in May. Additionally, in the month of June, Consumer Price Index CPI in Belgium decreased to 127.11 points in June from 127.30 points in May of 2023, resulting in its lower price trend. Also, Germany's Purchasing Managers' Index in June 2023 with manufacturing PMI falling to 51.3 from May 2023′s 54.8 and services PMI dropping to 52.4 from May's 55.0. Purchase activity from downstream industries, mainly pharmaceutical and other, decreased significantly as a significant number of buyers concentrated on maintaining low inventory levels and procuring material in need-based quantities. Furthermore, upstream propylene prices also decreased significantly in the last weeks of June due to weak global demand and surplus availability, further contributing to the subdued market sentiment for IPA in Europe.
For the Quarter Ending March 2023
North America
In North America, the cost of Isopropyl Alcohol plunged throughout the first quarter of 2023 but with slight fluctuation. The consistent decline in domestic demand since the previous quarter's trend and increased stockpiles among market participants during the first quarter supported this price trend. In addition, trade activity remained fragile as the import momentum continued to follow the market sentiments of the previous quarter. Moreover, as we moved towards February, the prices started to incline at a moderate rate and continued to follow a similar tendency until March. Sufficient stockpiles with a sturdy demand outlook. Overall, the prices for Isopropyl Alcohol in North America were recorded at USD 1225 /MT in March.
Asia Pacific
Throughout the first quarter of 2023, in the APAC region, particularly China, the prices for Isopropyl Alcohol demonstrated improvement. In early January, the price of Isopropyl Alcohol (IPA) dropped at a sturdy rate owing to weak demand from end-user industries like the pharmaceutical, coating, and Chemical industries balanced with enough supplies among the domestic merchants compared to the previous week. In addition to that, the lower upstream propylene market supported the market trend in the first half of Q1. However, with the start of February, the prices began to surge and continued until March 2023. This price trend was attributed to improved purchasing activity coupled with a surge in trading volume and a rise in operational charges. Altogether, the market of IPA ended the first quarter of 2023 on a positive note, with a price settlement at USD 1035/MT in China.
Europe
Up until the end of the first quarter of 2023, prices for Isopropyl Alcohol were on the decline throughout Europe, particularly in Germany, because of weak downstream demand from a variety of end-user sectors and higher stockpiled inventories. Isopropyl Alcohol prices, however, followed the trend of December in January as the prices increased at a study level. The market sentiment for Isopropyl Alcohol then again went down as February approached, which was supported by a decline in purchasing activity followed by weakened upstream cost. Also, the trade activity for Isopropyl Alcohol from exporting nations continues to remain on the south side. Isopropyl Alcohol was sold for an average price of USD 1825 /MT in Germany at the end of March.
For the Quarter Ending December 2022
North America
Throughout the fourth quarter of 2022, the prices of Isopropyl Alcohol demonstrated a weak market sentiment in the United States. Slowing end-user demand put downward pressure on prices. Moderate GDP growth in North America slowed industrial production and kept the market dynamics of Iso Isopropyl Alcohol on the lower side. The spot supply of Isopropyl Alcohol in the domestic region was sufficient, and the market transactions were mainly based on a need-on-demand basis. In the mid-q4, the U.S. supply chain improved slowly with ease in port congestion since its worst days during the first year of the pandemic. Still, this did not affect the price trends of Isopropyl Alcohol in the United States. Thus, towards the end of the fourth quarter of 2022, the Isopropyl Alcohol prices settled at USD 1290/MT FOB Texas.
Asia Pacific
In Asia Pacific, primarily in China, the prices for Isopropyl Alcohol witnessed a significant dip of around 1.56 percent and got settled at USD 1012/MT FOB Qingdao in December during the Q4 of 2022. China's factory prices showed an annual fall in November while consumer inflation slowed, indicating weak tendencies such as soft demand and higher inventories among the market participants in an economy where tough pandemic controls had held back. Also, as feeble global and domestic demand in November, increasing COVID-19 cases led to production and transportation disruptions which piled pressure on the world's second-biggest economy as the inventories stocked up with the market participants.
Europe
European region witnessed mixed pricing sentiments of Isopropyl Alcohol during the fourth quarter of 2022. Although during the first half of the fourth quarter of 2022, the inquiries remained weak, and the downstream demand within the domestic market also decreased, supporting the price sentiments of Isopropyl Alcohol in Germany. During mid-q4, the prices started to incline moderately as a small order from the downstream pharmaceutical, coating, and chemical sectors increased considerably. Furthermore, the upstream Propylene prices in December inclined during the last month of q4, which additionally supported the moderately increased price trends of Isopropyl Alcohol in Germany. With the ending of the final quarter of 2022, the prices of Isopropyl Alcohol got assembled at USD 1910/MT FD Hamburg.
For the Quarter Ending September 2022
North America
In the North American region, the prices of Isopropyl Alcohol witnessed a mixed market sentiment during the third quarter of 2022. Fluctuating upstream Propylene prices affected the price of Isopropyl Alcohol in the overall domestic and regional market. At the onset of the first half of Q3, the prices inclined slightly owing to healthy demand witnessed within the region. Following the mid of Q3, the prices dropped significantly owing to weaker buying sentiments which were displayed till the end of Q3, i.e., in September. Additionally, the traders were left with enough inventories to cater to the overall demand side. Thus, towards the third quarter's termination, the IPA prices settled at USD 1450/MT FOB Texas.
Asia Pacific
During the third quarter of 2022, the market for Isopropyl Alcohol showcased a decremented market sentiment in the APAC region backed by lackluster downstream demand from end-user Pharmaceutical, personal care, and chemical industries and fluctuating upstream propylene prices. Furthermore, halted trading momentum, stoppage of manufacturing processes, and weakened customer inquiries were some of the primary factors that supported the pricing sentiments of Isopropyl Alcohol in the Chinese market. Additionally, worsening climatic conditions and higher inflation rates which resulted in the reduction of consumer interest, were other factors for the weaker price trend of IPA in China. With this, the prices of Isopropyl Alcohol got settled at USD 1031/MT FOB Qingdao.
Europe
European region witnessed an upsurged pricing sentiments of Isopropyl Alcohol during the third quarter of 2022. Although during the first half of Q3, the prices declined significantly by 2.20 percent and got settled at USD 1775, which was supported by weak demand and sufficient inventories in the domestic market. Towards the end of H1 and the start of mid-Q3, the prices rose considerably owing to increasing demand and customer inquiries. This propelled the market participants to improve their quotations and further restock their declining inventories to maintain their profit margins. Hence the prices of Isopropyl Alcohol witnessed at the end of q3 were assessed at USD 1900/MT FD Hamburg.
For the Quarter Ending June 2022
North America
In the North American region, the prices for Isopropyl Alcohol witnessed a downward pricing trajectory during the second Quarter of 2022. Fluctuating feedstock Propylene prices affected the market price of Isopropyl alcohol in the overall domestic and regional market.in terms of supply, there were higher supply rates owing to excess inventories with the manufacturers in chemical, personal care, automotive, and pharmaceutical industries with weakened purchasing activities from the buyers negatively affecting the Isopropyl Alcohol Market. Towards the end of the second quarter, IPA prices went stable with sturdy downstream demand. This quarter the prices of IPA in the United States declined by 1.28% compared to the previous quarter.
Asia Pacific
During the Second Quarter of 2022, the market for Isopropyl Alcohol showcased a fluctuating market sentiment in the APAC region. Consistent reduction in upstream feed propylene prices weakened the market price of Isopropyl Alcohol. During April, the prices were recorded to be higher due to its raised downstream demand from end-user Pharmaceutical, personal care, and chemical industries. With the end of April, the prices went down, and sinking trading activities due to a reduction in imports for IPA were observed regionally. Also, weakened buying activities resulted in ample inventories with the local suppliers in the market towards the end of June 2022.
Europe
During the Second Quarter of 2022, the Isopropyl Alcohol market witnessed similar market sentiments as the North American Region due to decreasing input costs. The reduction in downstream demand from personal care, chemical and automotive sectors affected the price value of Isopropyl Alcohol. With the onset of Q2, varying raw material Propylene prices impacted the market of IPA, which further imposed its impact on the inventories in the industrial grade within the European market. Additionally, IPA prices dropped as traders focused on stocking the existing inventories to initiate new production. Towards the termination of the second quarter, the price trend of Isopropyl Alcohol in Germany surged by 1.97% in the second quarter.
For the Quarter Ending March 2022
North America
During the first quarter of 2022, Isopropyl Alcohol prices showcased a marginal rise. The prices were impacted by the upward crawl in crude values, which had a direct impact on the prices of its raw material, Acetone. After the outbreak of COVID, the demand for disinfectants and hand sanitizer rose, augmenting the use of the product in the healthcare and cleaning sectors. Moreover, the skyrocketing truck and ship freight charges compelled the manufacturers to maintain the upward trend in the IPA market so that their profit would not be affected. Thus, Isopropyl Alcohol prices in the USA settled at USD 1662 per MT for FOB Texas in the quarter ending in March.
Asia Pacific
Isopropyl Alcohol prices witnessed an upward trajectory in the first quarter of 2022. Production halt in China due to the Winter Olympics and Lunar holidays resulted in limited shipments to India, which caused this price hike. Besides, the disruption in Chinese ports owing to the resurgence of COVID and lockdown restrictions led to delays in import and export. In addition, surging upstream crude oil values and its derivatives further impacted the IPA market. Henceforth, prices of Isopropyl Alcohol in India were assessed at USD 1295 per MT in March.
Europe
In the first quarter of 2022, Isopropyl Alcohol observed mixed sentiments in Europe. In February, IPA prices dropped due to the high inventory levels and reduced demand from the regional market. The FD price for Isopropyl Alcohol in Germany was observed at USD 1535 per MT in February. Later in March, prices started to surge owing to the escalated tension between Russia and Ukraine due to war, which led to skyrocketing Crude oil consequently affecting feedstock Acetone and Propylene prices. Furthermore, increased demand from downstream automotive, paint& coating sectors inflicted the IPA market trend.
For the Quarter Ending December 2021
North America
Isopropyl Alcohol (IPA) values in USA continued to remain rangebound throughout the quarter owing to the skeptical demand prospects. Furthermore, persistent dullness in values of feedstock Acetone also provided room for the manufacturers to ease the cost pressure upon consumers at times of the bearish demand pattern. On the other hand, supply overhang in Asia due to excessive production from China has also reduced the demand for US exports. Amidst the demand uncertainty and weak feedstock values, Isopropyl Alcohol (IPA) FOB prices averaged at USD 1500 per MT in late December.
Asia
Asian market experienced continuous drop in the prices of Isopropyl Alcohol (IPA) amidst ample of product availability amidst the stable demand. In India, IPA prices continued to dwindle in line with consistent drop in prices of imported cargoes from China. The oversupply situation in China has been extending to the regional market due to which there is a drop in prices. Export demand in China remained relatively weak since November, influenced by the year-end dullness in the international demand. Besides, China’s month on month production has been ample which has led to an oversupply condition and has kept the pricing curve in downward trend. Towards the end of November, resumption in production of Lihua Yiweiyuan further exacerbated the oversupply condition, where the demand remained tepid in the domestic market. In line with the narrowed demand and supply gap, Isopropyl FOB prices in China tumbled to USD 1045 per MT in late-December.
Europe
In Q4 2021, consistent fall in feedstock Acetone prices weighed down the prices of Isopropyl Alcohol (IPA) in the regional market. Inflation in the natural gas prices led to high operating cost which eventually made manufacturers curtail the overall production in Europe. On the other hand, demand for IPA fluctuated in a stable to firm range throughout the quarter. IPA FOB prices in Germany were assessed at nearly USD 1145 per MT in December.
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
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.
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.
