Isopropanol (IPA) domestic and spot prices rose this week, following nominations with quick turnarounds from several producers last week. Now, additional price increase initiatives have been noted for the week following Christmas.
The primary driver for higher nominations has been the rise in propylene costs in the past month.
Propylene contracts settled on 17 December up 10 cents/lb higher for most market participants. The increase is the largest month-on-month contract price jump since January 2017 and has taken contract levels to their highest levels since November 2018.
Spot prices of propylene are also quite elevated. Chemical-grade propylene (CGP) and polymer-grade propylene (PGP) prices spiked in late November and early December but have continued to grow over the past four weeks.
While IPA price changes are often driven by market fundamentals, upstream costs can also play a significant role. Movements of this magnitude are rare.
