SunSirs: The Domestic IPA Market Declines All the Way in July

Price trend

According to the monitoring of bulk commodity data, the domestic IPA market has been declining in July. The average domestic IPA price at the beginning of the month was 11,600 RMB/ton, and the average price at the end of the month was 9,650 RMB/ton. The price dropped by 16.81% during the month.

Analysis review

In July, the domestic IPA market declined. The main reason lies in the decrease in foreign trade orders and the decline in order prices. In the international market, IPA continued to decline in the US and European markets. The demand for IPA in the overseas disinfectant market has decreased compared with before. Overseas orders have been reduced to varying degrees, and prices have also fallen. The focus of the domestic IPA market has shifted downwards, with more enquiries, mainly wait-and-see, and cautious purchases. Up to now, the negotiation range of Shandong IPA in the domestic region is around 9,100-9,500 RMB/ton, and the negotiation range of Jiangsu IPA is 9,500-9,600 RMB/ton. The negotiation interval for IPA in South China is around 9,800 RMB/ton.

In terms of raw material acetone, the national acetone market continued to fall sharply. Up to now, the acetone market in East China is offered at 6,800 RMB/ton, and there is still room for real orders. The current market negotiations are quiet, and the purchasing sentiment of the terminal is not high. There is really no minimum but a lower trend. At present, acetone lacks support for IPA, and the price of IPA and acetone are falling simultaneously.

In terms of raw material propylene, the market price of propylene in Shandong continued to decline. Up to now, the market transaction is between 6,620 and 7,000 RMB/ton, and the mainstream price is around 6,650 RMB/ton. The current shipments of propylene manufacturers are flat, but there is no inventory pressure for the time being. The cost support for propylene is also weak, and the market price of IPA begins to tilt downward.

Market outlook

The IPA analyst of SunSirs believes that the prices of raw materials acetone and propylene have declined, and the cost support for IPA is limited. In the international market, the IPA market continued its downward trend. On the demand side, good foreign trade has slowed down, export order prices have fallen, and orders received have been significantly reduced. There are many domestic trade enquiries, mainly wait and see, and take goods very cautiously. In general, the price of IPA is likely to continue to decrease in the short term, and follow-up attention will be paid to the news.

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