In September 2023, the isopropanol market showed a strong price upward trend, with prices continuously reaching new highs, further stimulating market attention. This article will analyze the latest developments in this market, including the reasons for price increases, cost factors, supply and demand conditions, and future forecasts.

Record high prices

As of September 13, 2023, the average market price of isopropanol in China has reached 9000 yuan per ton, an increase of 300 yuan or 3.45% compared to the previous working day. This has brought the price of isopropanol close to its highest level in nearly three years and has attracted widespread attention.

Cost factors

The cost side is one of the key factors driving up the price of isopropanol. Acetone, as the main raw material for isopropanol, has also seen a significant increase in its price. At present, the average market price of acetone is 7585 yuan per ton, an increase of 2.62% compared to the previous working day. The supply of acetone in the market is tight, with most holders oversold and factories shutting down more, leading to a shortage in the spot market. In addition, the market price of propylene is also increasing significantly, with an average price of 7050 yuan per ton, an increase of 1.44% compared to the previous working day. This is related to the rise in international crude oil prices and the significant increase in downstream polypropylene futures and powder spot prices, which has led the market to maintain a positive attitude towards propylene prices. Overall, the high trend on the cost side has provided significant support for the price of isopropanol, making it possible for prices to rise.

On the supply side

On the supply side, the operating rate of the isopropanol plant has slightly increased this week, expected to be around 48%. Although some manufacturers’ devices have restarted, some isopropanol units in Shandong region have not yet resumed normal production load. However, the centralized delivery of export orders has led to a continuous shortage of spot supply, keeping market inventory low. Holders maintain a cautious attitude due to limited inventory, which to some extent supports price increases.

Supply and demand situation

In terms of demand, downstream terminals and traders have gradually increased their stocking demand in the middle and late stages, which has formed positive support for market prices. In addition, export demand has also increased, further driving up prices. Overall, the supply and demand side has shown a positive trend, with multiple markets experiencing supply shortages, increasing demand for end products, and continued positive market news.

Future prediction

Despite the high and firm raw material costs, the supply side supply remains limited, and the demand side shows a positive trend, with multiple positive factors supporting the rise in isopropanol prices. It is expected that there is still room for improvement in the domestic isopropanol market next week, and the mainstream price range may fluctuate between 9000-9400 yuan/ton.

Summary

In September 2023, the market price of isopropanol reached a new high, driven by the interaction of cost side and supply side factors. Although the market may experience fluctuations, the long-term trend is still upward. The market will continue to pay attention to cost and supply and demand factors to further understand the development dynamics of the market.