Market Analysis - Monthly Report - November, 2020 - Isopropanol

What's hot and what's trending this month

1）The isopropanol market is rising rapidly this month.

2）The price of raw materials rose too fast, and the factory was forced to shut down.

Summary of the market this month

This month, the isopropanol market rapidly higher. In terms of supply, the domestic large factories resumed after a short shutdown, while the rest of the factories were operating under low load and the supply side of the whole body was slightly tight. Demand side continued weakness, Isopropyl Alcohol earlier this month in the rapid rise of acetone to pull up, market speculation atmosphere, the downstream demand, there is no substantial support, therefore after prices pushed up factories are pretty price intention, but the next tour demand under the condition of poor, pretty price is unsustainable, near the end of the court profit dish delivery, price of center of gravity will have a fall. 

Market forecast for next month

Domestic isopropanol plant starts to reduce the load, the supply side is tightened, the downstream demand side continues to be light, the current situation of sluggish demand is difficult to change, acetone price is high this month, the possibility of high shock next month is mostly; PROPYLENE price went up this month, next month or limited volatility, the overall cost of some support. In the aftermarket, the Isopropyl Alcohol market has advantages and disadvantages, because of its own demand is not good, need to pay attention to the upstream raw material acetone and propylene
situation, is expected to oscillate in the next month.

Factory shutdowns in China

In November, isopropanol manufacturers operated at an operating rate of about 53 percent.

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

According to customs statistics, in October 2020, the import price of isopropyl alcohol was 874.92 tons, and the average import price was us $1342.96 / ton. In October 2020, 45,65.26 tons of isopropyl alcohol were exported, and the average export price was US $1103.87 / ton.

Note: The General Administration of Customs will no longer release the import and export data of January and February separately in 2020. Instead, they will be released to the public in March. January and February will be equally divided.

Summary and views

Next month, the isopropanol market or range volatility. In terms of raw materials, propylene is also likely to go up if acetone next month or high vibration, and the cost side has certain support; On the supply side, the downstream demand for isopropanol will continue to be poor next month, and the weak demand situation is difficult to change, so we need to focus on the trend of upstream raw materials, especially the trend of acetone.