Market Review:

The Chinese isopropanol market moved marginally in January 2018. Isopropanol market prices moved up in early January and went down at the end of January. In early January 2018,the unit at Haike was put into operation when Dadi Supu and Kellin Chemicals had export orders. Moreover, the inventories at ports were consumed rapidly. Holders raised the prices and isopropanol prices inched up. During this month, most isopropanol producers adopted acetone method operated in a loss. As for the producers adopted propylene method, the profits were limited. Then acetone prices moved down and the buying interest was low. At the end of January, the isopropanol prices inched down.

Up to January 31, 2018, the closing price for isopropanol in Jiangsu was RMB 7,700/mt, up RMB 25/mt or 0.33% month on month. The average price was RMB 7,740/mt, up RMB 38/mt.

Forecast：

Supply & Demand

1. During the Spring Festival, the unit at Changcheng will shut for 5 days. The unit at Zhejiang Xinhua will be shut. The unit at Kailing will be shut before the Spring Festival and the restart time is uncertain. The overall supply will decline in February.

2. Cargoes from Jinzhou will arrive at Jiangsu in H1 February. The inventory will be modest.

3. Some downstream units are shut and the demand for isopropanol will be weak before the Spring Festival. Traders operated flexibly.  

Other Influencing Factors:

1. The propylene market moves at highs and the acetone market is weak.

2. Profits of producers adopted acetone method start to see profits. Producers adopted propylene method see more production cost pressure.

3. The sentiments in the isopropanol market are modest.

On the whole, the overall sentiments are weak. The isopropanol market may move down amid the tepid demand.