Recent isopropyl alcohol market short growth momentum is limited, early due to isopropyl alcohol prices fell to a new low in January to August this year, the downstream and intermediate replenishment of goods, with the reduction of pressure on production enterprises, port inventory supplies are depleted, the seller’s mentality began to change, the offer tentatively pushed up, just need to follow up, support the transaction price rebound, but the fundamental bottom support is insufficient, Isopropyl alcohol growth is insufficient. As of August 15, the market price reference of isopropyl alcohol in Jiangsu is near 7925 yuan/ton.
First, limited cost support
During the week, affected by the surge in international crude oil, the seller’s low sentiment weakened, coupled with sporadic traders and downstream enquiries, the market’s low supply of goods was relatively reduced, and the trading atmosphere was good, supporting the market’s center of gravity slightly moved up. However, the good times are not long, the demand is weak, there is no good news support, and the acetone market is weak.
Second, the industry operating rate declined, but the social inventory is still good
The utilization rate of isopropyl alcohol in China is 48%, and the utilization rate of propylene method is 33%. The operating rate of the acetone method industry is 53%, some production enterprises are shut down, and the operating rate is low.
In the early stage, the price in Shandong is better than that in other markets, which makes the factory shipments high and the inventory tight, but with the end of the delivery period, the inventory of enterprises slowly increases, and the domestic trade ships are about to arrive in the West China reservoir area, the spot circulation in the afternoon will increase.
Third, demand is sluggish
At present, export orders are OK, but the exporter replenishment is basically completed, and the domestic demand performance is flat, just need to replenish the inquiry less, but with the late gold nine silver ten is coming, wait and see the demand side change.
In summary, the current acetone process enterprise profit space is still ok, the cost pressure is not large, and then the market spot supply will be increased, although the current low price replenishment, the demand is light, but need to pay attention to gold nine silver ten, domestic trade and export market changes. The short-term isopropyl alcohol market is expected to be weak and then strong.
