The prices of Monoisopropylamine (MIPA) in the USA market have experienced a downward trend, influenced by a range of factors such as feedstock costs, production expenses, demand-supply imbalances, and political and economic influences.

Specifically, the agricultural sector, a major downstream consumer of MIPA due to its role in producing Atrazine, saw a drop in demand. This was partly because of proposed government mitigation measures aimed at reducing Atrazine's environmental impact, leading to reduced purchasing activity for MIPA. Demand from the pharmaceutical sector remained steady, although the industry was adjusting to regulatory changes under the new government, which could eventually positively impact the demand for chemicals like MIPA used in drug production.

On December 3, 2024, the U.S. Environmental Protection Agency (EPA) proposed new mitigation measures for Atrazine, targeting reductions in exposure to non-target species and minimizing effects on endangered and threatened species and their habitats. The revised measures, which included stricter guidelines on Atrazine’s environmental impact, were part of the EPA's updated strategy, which also offered growers more flexibility in mitigating runoff. The proposal included revised guidelines for the level at which atrazine was expected to negatively affect aquatic plant communities, expanded use of surface water monitoring data, and the runoff mitigation menu and point system from the Final Herbicide Strategy. Since MIPA is a key raw material in Atrazine production, the decline in Atrazine demand led to a corresponding decrease in MIPA demand. Meanwhile, in the pharmaceutical industry, the potential return of Donald Trump to the White House brought changes to the leadership of the U.S. Federal Trade Commission (FTC), which could spur increased mergers and acquisitions (M&A) activity in the biopharmaceutical sector. These changes could improve conditions for smaller biotech firms, possibly leading to higher demand for chemicals like MIPA, which are used in drug manufacturing.

On the supply side, MIPA production in the U.S. remained moderate as the manufacturing sector contracted slightly in November. Production slowed, demand was weak, and there were signs of growing backlogs, though suppliers had capacity and lead times improved. Additionally, the price of isopropyl alcohol, a key feedstock, fell, reducing production costs and reflecting the broader weak market conditions. Sluggish demand and reduced production contributed to the overall bearish trend in MIPA prices. In comparison to the previous month, MIPA prices dropped by 1.0%, settling at USD 1634/MT FOB Houston, USA.

Looking ahead, the dynamics of demand and supply will continue to influence MIPA prices, and further fluctuations are likely as these factors evolve.