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Monthly Report of IPA in April

 ECHEMI 2020-05-03

Analyst : Will

What's hot and what's trending this month

1) outbreaks reduced demand, isopropyl alcohol is down shrines.

2) maintain high capacity load, weak domestic demand.

3) high raw material costs, isopropyl alcohol factory profit margins are shrinking.

Summary of the market this month

This month, isopropyl alcohol market after a fall first, overall there are still sharply higher from the previous month.Earlier this month, the court continues supply tight, rotary header domestic factories, boundless domestic supply, take the lead in execution give priority to export orders.Combined with acetone is also a strong push up raw materials, the manufacturer's scrambled up the mood.Although since domestic downstream demand has been poor, but also has a rigid demand, passive high clinch a deal.Clinch a deal but the spot market especially chemistry, manufacturer in order to retain customers, more orders in book form.This situation continues, the market are also higher.With isopropyl alcohol profits high stand, parking domestic factories restart, there are also new device switch production, the supply has increased expectations, but spot did not improve, tensions between isopropyl alcohol is still the continuation of high.Until later this month, about future worries increase profits under the phenomenon appear, low-cost out again and again, what is more weak, slide open formally.

Market forecast for next month

Factory load remains high, and a new plant start-up and continuous supply.Although factory reflect may order more more, but saturation degree is inferior to April, or gradually produce surplus supply, domestic demand, there is no better, and isopropyl alcohol bearish, artificial control downstream demand to fall.International outbreak continues, however, demand for isopropyl alcohol is relatively stable, but the domestic procurement or relaxed, began to decline, while the isopropyl alcohol acetone high raw material, but the current both acetone method and method of propylene isopropyl alcohol factory profit space is still large, the cost of surface effect is not obvious, worries increase, coupled with the domestic export orders less, isopropyl alcohol, or gradually moving closer to the cost line.

Factory shutdowns in China At full capacity, at the beginning of April some parking device for short periods of time, have a quick recovery, new plant start-up and stable operation.

Chart of China's MA export trend in 2019-2020

Customs statistics, in March 2020, export of isopropyl alcohol 14590.61 tons, exports average price of $880.58 / ton;In March 2020, imports of isopropyl alcohol 1578.97 tons, import prices is $1847.9 / ton.Remark: General Administration of Customs, will not be released 1, 2020, the import and export data in February, in March instead of merge to the community, in January and February, divide the total.

Summary and views

Next month, the foreign trade order in May have shrank, although the international epidemic continues, but for the domestic procurement.Together with the production of the new device and startup of the domestic high load on the supply or in gradually ease.With old and new equipment in the game on the market will gradually obvious, highly profitable isopropyl alcohol is still downward space,

IPA

 Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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