Market and product

Spot availability of isopropanol cargoes in Asia may diminish following the opening up of arbitrage window to the US, while regional production is being curtailed by high cost of feedstock acetone, market players said on Friday.

Several northeast Asia-based producers have received queries from US, where supply has tightened due to turnarounds and production issues at some major domestic plants.

“The prices in Asia are high, and their profits could be comparable to the US prices,” said a northeast Asia-based producer.

In Asia, two producers are contemplating cutting run rates at their plants amid the uptrend in feedstock acetone prices.

Some players said that acetone production is being favoured over IPA, since it offers stronger margins.

Meanwhile, Shell Singapore has scheduled a catalyst change at its IPA facility in March for one to two weeks. - ICIS