Steady Increase in The Di Isopropyl Ether Prices in US Market Amid Supply Chain Concerns

In the North American region, the Di Isopropyl Ether price increased negligibly by 0.5% during the concluding month of 2023 amid the affected supply rates and previous availability of stocks in the market.

The production rates of Di Isopropyl Ether were firm in the key Di Isopropyl Ether producer and exporter, and trades were stable. Meanwhile, the affliction in shipping activities affected the Di Isopropyl Ether supply rates in the regional market. According to the sources, the decrease in the shipping activities through the Panama Canal because of low water levels from the past month due to dry weather conditions because of the El Nina effect and detouring of Cargoes impacted the product deliveries in the regional market.

Simultaneously, the Di Isopropyl Ether offtakes remained low from the domestic market as the orders for Di Isopropyl Ether solvent declined during the month due to reduced procurement activities and consumption rates from the end-user industries like paint and cleaning agent manufacturers. As per the market sources, the USA manufacturing sector Purchasing Manager’s Index decreased again in December 2023 and remained below 50 points amidst a deacceleration in new orders from the buyers and a consequent decline in the industrial production rates.

Furthermore, in China, the cost support decreased marginally on the feedstock Propylene prices during the month due to shifting offtakes from downstream industries, which eased the upstream cost support on the production costs of Di Isopropyl Ether.

As per the ChemAnalyst data sources, the Di Isopropyl Ether DINP DEL USGC quotations hovered at USD 2225/MT at the end of December 2023. At the same time, the Di Isopropyl Ether FOB China discussions witnessed USD 1990/MT, after a slight decrease of 1.5% during the month.

As per the estimation, the Di Isopropyl Ether prices will decline further in January 2024 as the consumption rates will remain low due to weak production rates amid the New Year Holidays in the region. Meanwhile, a spike of 70% in the US container freight costs was seen amid the Red Sea attacks due to the conflicts in the Middle East region and will raise the product import prices. Simultaneously, the shipping will face delays during the peak winter. The demand will likely pick up in mid of the first quarter 2024. It will raise the Di Isopropyl Ether in the US region. Meanwhile, the production rates will decline in China in February due to the Lunar New Year Holidays in the country. So, the product supplies will reduce from the Chinese suppliers to the US market, and prices will surge towards the end of the Fiscal year.