Published on July 17, 2014

Famine supply amongst importers has escalated the prices of ISO Propanol (IPA) in Indian market in the preceding two months.

In the second quarter of this fiscal year prices of IPA have augmented with a very high note. Traders feel that in last quarter stock availability of IPA was very dull amongst importers and those that do grasp any stock for the chemical was again very limited, importers were having squat inventory compared to demand. Hence short supply position has escalated the prices for the solvent.

In the month of April average prices of IPA were assessed in the range of Rs 96.32/kg. In the next month prices have augmented and were assessed in the range of Rs 109-111/kg and in the month of June average prices of IPA have inched down and were assessed in the range of Rs 110-112/kg.
Previous month, international prices also oscillated and in first two weeks prices remained firm but in last week prices have diminished by about USD 50-55MT.

Sources said that stock uptakes for IPA have been strong and steady from end-user industry such as agro and Pharma in the past few months. This has constructively pushed up prices. Overall prices increased by Rs.10-15/kg for this period. Apart from this owing to maintenance turnaround in domestic market IPA prices have augmented as all the market players were completely dependent on the imports.

In last three months total imported quantity was approx 11329MT. In the month of June, imported quantity was higher compared to the previous months it was around 6541MT. In the month of May, imported quantity was 1514MT. Recent reports said that with fresh arrival of material, prices shall probably tumble in coming days.

According to sources, vessels have been booked and are expected to arrive in next few days. Bookings were heard around Rs. 97-99/Kg and even deals were confirmed at this rate in the domestic market for fresh stock.