Market Analysis - Monthly Report - August, 2020 - Isopropanol

What's hot and what's trending this month

1) In the first half of the month, affected by weak exports and the easing of the epidemic, factories letprofits and prices fell.

2) Starting from the second half month, the price of raw acetone rises, leading to the price rise ofisopropanol.

Summary of the market this month

This month Isopropyl Alcohol market after the first, the overall lower than last month. On the supplyside, the domestic factory operation is stable and the supply is sufficient. On the demand side, theisopropanol export volume continued to decline this month, manufacturers highlighted the shippingpressure, most of the period of active delivery of goods. In the second half of this month, as rawacetone prices rebound, cost support Isopropyl Alcohol market with the rise, but the rise is cautious.

Market forecast for next month

Isopropanol plant operation fluctuations or limited in September, the overall supply will remain stable;Isopropanol exports continue to be poor, manufacturers shipping pressure is large, short term ordifficult to improve; Next month Acetone market bearish, fall risk is greater, isopropanol cost supportor weak; Next month isopropyl alcohol may still be the main line, short - term market may havestir-fry sentiment, but the demand is still to be improved, isopropyl alcohol upward momentum isinsufficient.

Factory shutdowns in China

In August, the factory had routine maintenance, and the operating rate was about 70%.

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

According to customs statistics, in July 2020, the import price of isopropyl alcohol was 5,940 tons, and the average import price was US $1,519.06 / ton. Isopropyl alcohol was exported to 30508.7 tons, and the average export price was US $1,240.34 / ton.

Note: the general administration of customs will no longer separately release the import and export data of January and February in 2020, but will merge the data in March and release the data to thepublic in January and February. The total amount will be divided equally.

Summary and views

Next month, acetone market is not good enough, or will go down. In September, most of the domesticphenolic ketone plants will maintain normal production, and the inlet will still arrive at the port, thesupply side may still be loose. However, the downstream overall demand is not good, the demand foracetone will still be mainly rigid demand. Overall, the acetone market in September is still positiveinsufficient.