Isopropanol Market Intelligence Report – Recent Commodity Market Dynamics

I. Price Trends
1. Recent Price Volatility:
- As of May 25, 2026, the reference price for isopropanol stood at RMB 8,150.00 per metric ton, representing a 6.5% decline from RMB 8,716.67/ton on May 1.
- On May 22, the reference price was RMB 8,266.67/ton, down 5.16% from May 1; on May 21, it was RMB 8,333.33/ton (–4.4%); and on May 20, RMB 8,358.33/ton (–4.11%).
- On May 15, the reference price was RMB 8,125.00/ton, a decrease of 6.79% compared to May 1; on May 11, it was RMB 8,366.67/ton (–4.02%).

2. Regional Price Disparities:
- Prices in Shandong Province remain relatively low: on May 23, quotations ranged between RMB 8,000–8,300/ton, with Qingdao Shengze Chemical quoting RMB 8,000/ton and Shandong Shuojia Chemical quoting RMB 8,300/ton.
- Prices in Jiangsu Province are comparatively higher: Nanjing Baitu Chemical quoted RMB 9,400–9,500/ton on May 23.

3. Benchmark Price Movement:
- According to B2B platform Shengyishe (Business Society), the benchmark price for isopropanol was RMB 8,400.00/ton on May 21, reflecting a decline from the beginning of the month.

II. Supply-Demand Dynamics
1. Supply Situation:
- Domestic isopropanol plant operating rates stand at approximately 47–50%, with stable production and no scheduled maintenance shutdowns reported.
- Major producers—including Lihua Yi Weiyuan Chemical, Ningbo Juhua, and Huizhou Yuxin—continue normal operations.
- Hengli Petrochemical’s isopropanol seaborne cargo is expected to arrive shortly, implying near-term supply growth.

2. Demand Situation:
- Demand from traditional solvent applications remains weak, as the coatings and ink industries enter their seasonal off-peak period; procurement intentions are cautious.
- Pharmaceutical sector demand remains relatively stable, though restocking pace is moderate.
- High-end demand from electronics cleaning applications is growing, yet domestic electronic-grade production capacity remains limited, resulting in continued high import dependence.
- Export performance has been lackluster, impacted by India’s anti-dumping measures and the Southeast Asian Ramadan season.

III. Cost Support
1. Raw Material Prices:
- Propylene prices declined initially before stabilizing; spot transaction prices in Shandong Province range between RMB 9,200–9,350/ton, with minimal weekly volatility.
- Acetone prices weakened then stabilized; according to Shengyishe’s benchmark price, acetone stood at RMB 7,600.00/ton on May 15—a 1.49% decrease from the beginning of the month.

2. Strength of Cost Support:
- The downward trend in raw material prices has eroded cost support for isopropanol, thereby widening room for further price declines.

IV. Market Sentiment and Trading Activity
1. Market Sentiment:
- Industry participants generally adopt a cautious stance, with prevailing market sentiment characterized by strong wait-and-see attitudes pending signs of demand recovery.
- End-user factories primarily focus on fulfilling existing contractual obligations; new orders and replenishment purchases remain limited, and resistance to high-priced feedstock is pronounced.

2. Trading Activity:
- Transactions are largely driven by immediate, essential inventory replenishment; actual order volume remains subdued.
- Some manufacturers report modest inventory accumulation and declining sales efficiency.

Analysis & Assessment
1. Downward Price Pressure:
- Isopropanol prices face sustained downward pressure due to multiple factors: falling raw material costs, sluggish demand, and export headwinds.
- Weak demand from traditional solvent applications—now in seasonal low-demand phase—and cautious purchasing behavior continue to suppress pricing.

2. Support from High-End Demand:
- Growing high-end demand from the electronics cleaning segment provides some price support for isopropanol.
- However, constrained domestic electronic-grade production capacity and persistently high import reliance limit the extent to which such demand can uplift overall pricing.

3. Regional Price Differentials:
- As the primary domestic production base for isopropanol, Shandong Province enjoys comparatively lower prices, underpinned by cost advantages.
- Premiums observed in regions such as Jiangsu stem largely from logistics and other regional cost factors—but these premiums remain narrow and capped.

Forecast
1. Short-Term Price Outlook:
- Isopropanol prices are expected to continue trending downward in the near term, pressured by soft demand and weakening cost support.
- However, upward momentum from growing high-end demand in electronics cleaning may provide partial price floor support, limiting the magnitude of declines.

2. Medium- to Long-Term Price Outlook:
- Over the medium to long term, isopropanol price trends will hinge on evolving supply-demand fundamentals and raw material price fluctuations.
- A rebound in traditional solvent demand—or sustained expansion of high-end demand from electronics cleaning—could stabilize or lift prices.
- Conversely, further declines in raw material costs or persistent export constraints could sustain downside pressure on isopropanol prices.