Shenzhen (ChemAnalyst) - Isopropyl Alcohol (IPA) prices grew during the second week of May in the Chinese market after the May Day festival. The rising raw material values, improved market fundamentals, and healthy trade activities were the primary reasons for the increase in Isopropyl alcohol prices.

As per the sources, there have been strong buying activities with improved demand for the product in the domestic market after May Day Holidays in the country. The demand remained buoyant from the downstream pharmaceutical and cleaning sectors due to its strong use as a solvent in disinfectants, antiseptics, etc. When the downstream manufacturers were cross-examined, they stated that the surging COVID cases in China wreaked havoc on various cities, which further boosted the requirement for the product. This laid the foundation for the increase in the raw material Isopropyl Alcohol prices.

However, after the festival, the cargo holders have started pushing up the trade supporting the prices. China is one of the major manufacturers of Isopropyl Alcohol; after the ease in Shanghai port congestion, the trade activities improved, which positively impacted the Isopropyl Alcohol pricing. One of the suppliers from China informed ChemAnalyst, that the transmission costs have been ushering them to inflate the Isopropyl Alcohol prices. As a result, Isopropyl Alcohol prices rose by 25 dollars/tonne in April-May 2022 timeframe.

In addition, the international crude oil prices are skyrocketing due to the ongoing war between Russia and Ukraine. This price hike has been influencing the Propylene and Acetone prices, which is the primary raw material used in the production of Isopropyl Alcohol and has been boosting the regional and domestic market dynamics.