US isopropyl alcohol reached its lowest levels in 11 years in a 2015 marked by a steep decline in feedstock pricing.
US IPA has declined 38.3% since the start of the year, Platts data show. The Dec. 17 assessment of $816/mt FOB USG represents a steady drop from $1,323/mt FOB USG at the start of the year as pricing mostly followed decreases in feedstock propylene contracts.
The most recent assessment represents an 11-year low, the weakest since $762.50/mt FOB USG on August 17, 2004, according to Platts data.
US IPA pricing has averaged $1,032.36/mt FOB USG so far in 2015, a decline of just more than 30% compared with the last two years. US IPA averaged $1,482.94/mt FOB USG in 2014 and $1,488.40/mt FOB USG in 2013, according to Platts data.
Feedstock chemical-grade propylene contract prices have declined 37.5% throughout the year. Those declines included a six-and-a-half year low of 28.50 cents/lb in September, Platts data show.
CGP contract prices have since increased with the November CGP contract price, the most recent, at 30 cents/lb, while the December contracts have started to settle 0.50 cent above that, sources said this week. Those levels still mark firm drops from 48 cents/lb at the start of the year.
IPA pricing typically lags the change in propylene contract prices, but follows them closely, sources say.
IPA, also known as isopropanol, sees use in solvent, medical, automotive and cleaning applications.
