What are the reasons for the decline of isopropanol market?

1¡¢ Fair profit of isopropanol

As of October 17, 2022, the profit value of acetone method is around 500 yuan/ton, and that of propylene method is around 1000 yuan/ton. The profit value of propylene method exceeds that of acetone method. As the market price of isopropanol increases rapidly, the price of raw propylene changes little, so the profit space of propylene method is large. Acetone and isopropanol go hand in hand, so the profit margin is small.

2¡¢ Increase in average operating rate of isopropanol industry

After returning from the National Day holiday, the average operating rate of isopropanol increased step by step. Zhangjiagang Kailing Chemical's 100000 t/a isopropanol plant operated normally after the holiday; The 100000 t/a isopropanol unit of Shandong Dadi started to be upgraded, and started to work stably and normally around the middle of the year. At present, the profit of propylene process is high. The propylene process enterprises have started to improve, and the 50000 t/a isopropanol unit of Zhejiang Xinhua has also started. The supply side continued to increase. Last Friday, an epidemic occurred in Beilun, Ningbo, and delivery in Ningbo was limited.

3¡¢ Export order general

It is reported that the export order of isopropyl alcohol in October is still good, estimated at 15-200 tons, a small drop of 5000 tons compared with the export volume in September, but it is estimated that some shipping dates may be delayed. With the increase of domestic prices in the early stage, the FOB gold price rose from 850 dollars/ton to around 900 dollars/ton. Foreign investors rejected the high price, and their feelings of receiving orders declined.

4¡¢ Lack of domestic demand

Since March 2022, the epidemic has continued to blossom in many places, the terminal consumption has been degraded, domestic demand has been weak, and the demand has been limited. With the increase of the price of isopropanol, the procurement has been weak, and the buying atmosphere has fallen back.

To sum up, although the center of gravity of raw material acetone rose to more than 6000 yuan/ton, and the export orders were OK, most factories delivered export orders mainly. In the first ten days, the supply was tight, and the support was strong. The price of isopropyl alcohol rose to 8000 yuan/ton, but in the second ten days, with the delivery of some orders and the improvement of industry commencement, the supply tension eased. The subsequent negotiations on new export orders were insufficient, domestic trade was weak, and the seller's mentality changed, It is profitable to ship. However, acetone is hovering at a high level, and the cost is supported. It is expected that the decline of isopropanol will be limited.