U.S. demand for isopropanol drops and imports show signs of slowing down 　

According to ICIS website on October 13th, the demand for isopropyl alcohol (IPA) in the United States continued to show a downward trend after an unprecedented surge in the spring.

This downward trend first started in the second quarter and continued until the third quarter. It is currently the beginning of the fourth quarter.

At the beginning of 2020, the main driver of isopropanol demand is the hand sanitizer market. With the rapid increase in coronavirus cases in February and March, consumers believe that hand sanitizer is an effective measure to limit the spread of coronavirus.

Since then, despite the steady increase in coronavirus cases in June and July, and a more gradual third wave in October, the demand for isopropanol (especially the demand for hand sanitizer) has remained flat or declining.

The low-end domestic isopropanol price dropped by 1 cent/lb ($22/ton), and the high-end price dropped by 4 cents/lb. The current estimated price is 55-62 cents/lb (US Gulf FOB).

The spot market price dropped by 3 cents/lb, and the high-end price dropped by 5 cents/lb. The estimated price was 55-59 cents/lb (US Gulf FOB).

Although imports from South Africa increased, imports from all major importing countries in Asia declined. In addition, Ineos' factories in Germany have also improved.

From July to August, both imports and exports declined, reflecting the decline in demand.

Isopropanol imports fell 20% from the previous month and are currently at their lowest level since April.

From July to August, exports fell by 43%. Since February, the export level has never been so low.

In the U.S. export market, spot prices also fell in October as market participants indicated low demand.

A participant said that despite the significant increase in shipping and container costs from Asia, Latin America’s demand for US exports remains low. Although prices in the United States are now more competitive, transactions are restricted due to weak demand.

Prices fell by 5 cents/lb at the low end and 6 cents/lb at the high end. Export prices are expected to be 49-52 cents/lb.

US isopropanol suppliers include Exxon Mobil, Dow Chemical, Lyondell Basel, Monument Chemical and Shell Chemical.