Isopropanol Isopropyl Alcohol CAS NO.67-63-0 Review and Forecast Analysis

【Market Review】
In July, isopropanol exhibited a volatile downward trend, with the overall market showing a lackluster trading atmosphere. By July 29, the price had decreased by $29.5 per ton compared to the previous month, reflecting a decline of 2.40%, while the year-on-year increase stood at 20.95%. As production facilities in Shandong and Northeast China resumed operations in July, the operating load of isopropanol is estimated to be 66.48%, which is an increase of 5.21% from last month. The domestic isopropanol market witnessed an oversupply situation, leading to intensified market competition and fluctuating prices. Export activities have remained steady, which has resulted in certain inventory pressures for major manufacturers starting from the latter part of the month. This has led to multiple reductions in factory gate prices, with traders adjusting prices to facilitate sales. Throughout the month, isopropanol remained in the off-season, with limited follow-up demand from downstream users, primarily driven by essential procurement.

【Raw Materials】
In August, the profitability of isopropyl alcohol dual raw material enterprises experienced fluctuations, while the profits from the hydrogenation method of acetone increased. In July, the domestic acetone market saw turbulent declines. As of July 29, the propylene market in Shandong dropped by 1.80% compared to June 28.

【Market Supply】
In July, the supply of isopropanol has increased, with plants in Northeast China and Shandong restarting operations. The production load rate of isopropanol in July is estimated to be 66.48%, which is an increase of 5.21% compared to the previous month.

【Demand Side】
This month, the domestic isopropanol market is experiencing insufficient demand. In July and August, domestic demand is in the off-season, with limited order quantities from downstream factories. Export volumes are supporting the downward trend. Downstream sectors such as coatings, inks, and electronic cleaning are performing weakly, while pharmaceutical intermediates and pesticides are maintaining contract replenishment.

【Analysis of the Import and Export Situation of Isopropanol Isopropyl Alcohol】
In June 2024, there was a noticeable increase in the import volume of isopropanol. On one hand, domestic isopropanol prices were relatively high, leading to a surge in imports; on the other hand, there was significant demand for electronic cleaning agents, resulting in increased supply of isopropanol from the Korean region. In June, the import and export volumes of isopropanol in China showed mixed trends.

1. In June, China’s import volume of isopropanol was 3,383.14 tons, with an average import price of $1,407.24 per ton. This represents a 127.41% increase in import volume compared to the previous month, with a cumulative import total of 11,200.28 tons, reflecting a year-on-year decrease of 26.25%.
2. In June, China’s export volume of isopropanol was 9,656.39 tons, with an average export price of $1,236.51 per ton. This marks a 47.84% decrease in export volume compared to the previous month, with a cumulative export total of 97,230.67 tons, indicating a year-on-year increase of 27.58%.

【 Future Outlook of Isopropanol Isopropyl Alcohol Market 】

Analysis of Supply and Demand Balance: Judying from July, market demand is limited and weak exports have resulted in slightly elevated social inventory levels. Goods from Northeast China have been gradually arriving at Jiangsu ports, resulting in an oversupply in the market. By the end of August, overall social inventory of isopropanol was on the high side, and some companies reduced production in the first half of the month. The domestic isopropanol market has shown a trend of initially declining and then rising prices.

With the arrival of the peak season in September and October, downstream stocking is expected to increase, leading to slight market recovery. In September, downstream demand and exports saw some increase, coupled with stable supply from key manufacturers, resulting in slightly insufficient market supply and a rise in prices. In October, with isopropanol production increasing and ongoing positive demand, market inventory is expected to ease, and prices are likely to remain elevated.

For isopropanol exports, significant procurement from India concluded in April and May, posing considerable downside risk for the latter part of the fourth quarter. However, the more significant factor is the status of domestic demand and production in China.

In August, the domestic acetone market may experience an initial decline followed by a rise, as several domestic factories have scheduled maintenance shutdowns, and some downstream industries are also undergoing maintenance. Overall, the market dynamics for the coming month will be entwined with both bullish and bearish pressures, and propylene prices may continue to fluctuate within a defined range. In September and October, boosted by peak demand, propylene prices are likely to remain at relatively high levels.

Note: This month, the profits for isopropanol and its upstream industrial chain have all increased, while propylene, acetone, and isopropanol are currently in a loss state.