Isopropyl Alcohol (IPA) Prices: During the second quarter of 2023 | ChemAnalyst

North America:

In the second quarter of 2023, Isopropyl Alcohol (IPA) prices in North America, particularly the USA, experienced a descending pricing trend. The early part of the quarter, up to the end of April, saw IPA prices tracking the previous month’s trajectory due to a consistent increase in domestic demand from pharmaceutical, chemical, and preservative sectors. This surge in consumer demand, steady trade activities supporting continuous manufacturing, and a decrease in ocean freight costs all contributed to a positive market trend for Isopropyl Alcohol in the early Q2. However, as the quarter progressed, IPA prices began to significantly decline. Weaker domestic inquiries, coupled with reduced upstream propylene prices, drove the market downward for the remainder of Q2 2023. In response, market participants focused on reducing their inventories. Additionally, ample supplies in both upstream and downstream sectors globally impacted US IPA demand. Suppliers were not compelled to sell urgently, and the added demand from the pharmaceutical sectors slowed the pace of price decline.

Asia Pacific:

In the second quarter of 2023, across the Asia-Pacific (APAC) region, particularly in China, Thailand, Malaysia, and South Korea, Isopropyl Alcohol (IPA) prices followed a descending trend. Throughout April, prices mirrored the previous month’s trend, remaining relatively high across all regions. However, as May began, prices began to decrease significantly in all regions due to lower purchasing power and increased corporate inventory levels, which were the primary factors dampening market fundamentals, with the exception of South Korea, where demand continued to surge until late May. South Korea also maintained an optimistic market sentiment, with a constant Consumer Price Index (CPI) of 111 index points throughout May. In contrast, falling upstream propylene prices in Thailand contributed to a weaker IPA market trend in May. By the end of Q2, the overall market outlook for IPA in all regions turned negative due to a substantial decrease in international and domestic offtakes. Furthermore, the weaker upstream propylene market and declining trade activity from exporting countries like China and South Korea continued to exert pressure on the market.

Get Real Time Prices of Isopropyl Alcohol (IPA): https://www.chemanalyst.com/Pricing-data/isopropyl-alcohol-31

Europe:

In the second quarter of 2023, Isopropyl Alcohol (IPA) prices in the European region, particularly in Germany, France, Belgium, and the Netherlands, exhibited a consistent downward trend. Although prices remained relatively high until April 2023, they began to decline in May due to a steady decrease in domestic inquiries and a significant drop in import momentum. Traders, faced with higher inventory levels, opted to reduce their inventory at a slower pace in May. Additionally, in June, the Consumer Price Index (CPI) in Belgium decreased from 127.30 points in May to 127.11 points, indicating a declining price trend. In Germany, the Purchasing Managers’ Index (PMI) for June 2023 showed manufacturing PMI falling from 54.8 in May to 51.3 and services PMI dropping from 55.0 in May to 52.4. Purchase activity from downstream industries, particularly pharmaceuticals, decreased significantly as many buyers focused on maintaining lower inventory levels and procuring materials on an as-needed basis. Furthermore, declining upstream propylene prices in the latter weeks of June, driven by weak global demand and surplus availability, contributed to the subdued market sentiment for IPA in Europe.