European isopropyl alcohol (IPA) prices retreated on Tuesday from a record high amid reports of increased imports from Asia.
The price for the spot IPA truck business was assessed at Eur3000/mt on Tuesday, down Eur700/mt from a week earlier after staying at the all-time record high of Eur3700/mt for four consecutive weeks. S&P Global Platts began price assessments for IPA FD NWE at the beginning of 1994.
The sharp increase in demand which led prices to the all-time record was mainly coming from sanitary hygiene applications, such as hand sanitizers, following the coronavirus outbreak at a time when European supply wasn't sufficient.
"Import volumes are bringing some relief in the shortage," a trader said.
Earlier, a number of traders said that they were sold out as the market was getting tighter and in some regions offers even reached to Eur5000-6000/mt.
"High end prices are disappearing gradually," the trader added.
European IPA producers were offering reduced volumes, according to other sources.
Looking forward, a small easing in prices is expected but not to the pre-pandemic period for the foreseeable future, according to traders.
"Demand remains strong and we don't see prices changing significantly even in June," a trader said.
Even if more volumes were to come via imports, prices are expected to be at relatively high levels, another trader said.
IPA prices averaged Eur958.70/mt in 2019, and so far this year the average is more than double at Eur2204.50/mt.
