# Isopropanol: Cycles

The 2020 sanitiser rush and the slide that followed

Source page: https://www.materialinsights.org/chemicals/isopropanol/cycles/

What this tab covers How its prices and margins move: past booms and busts with price levels, the spread or margin that the industry watches, the drivers of the cycle and the metrics to track.

IPA prices move with propylene and acetone, and spike with demand shocks, notably Covid-19 hand sanitiser demand in 2020. Because many uses are small and dispersed, spot markets react fast. The floor is the cash cost of acetone hydrogenation in China; the ceiling is set by ethanol substitution and imports. Anti-dumping duties in India create a domestic premium over CFR China levels.
 The spread to watch **IPA minus 0.75 x propylene, or IPA minus acetone**

With Chinese IPA at about $872/t and Asian propylene in the $700s/t in 2025, the propylene-route spread was about $300/t, thin for non-integrated producers (indicative).

#### Booms and busts

1. Feb-May 2020

Covid-19 drove a surge in sanitiser and disinfectant demand; buyers stockpiled.

Asian IPA roughly doubled to about $2,000/t from about $900-1,000/t (indicative, ICIS reports)

2. 2021-2022

Feedstock and freight spikes, then demand normalised as sanitiser stocks were run down.

not published (indicative: prices fell back toward $1,000/t in Asia by late 2022)

3. 2024

India's DGTR found dumping of Chinese IPA and recommended duties, applicant Deepak Fertilisers.

duties $82/t (Zhuhai Long Success) and $217/t (others) (fibre2fashion, Aug 2024)

4. 2025

Prices firm in the West and soft in China.

Q3 2025: US $1,393/t, France $1,385/t, China $872/t, Brazil $1,082/t (IMARC)

#### What drives the cycle

- **Propylene and acetone prices.** Most of cost; acetone is tied to phenol operating rates.
- **Pharma and disinfectant demand.** Large, steady use with occasional spikes.
- **Trade remedies.** Indian duties change import parity.
- **Semiconductor build-out.** Raises demand for electronic grade.

#### Metrics to track

| Metric | Why it matters | Where to track it |
|---|---|---|
| **IPA FOB Korea / CFR China** | Asian benchmark | ICIS, Platts, ChemAnalyst |
| **Acetone CFR China** | Feed cost for hydrogenation | ICIS, SunSirs |
| **Indian import volumes HS 29051220** | Effect of duties | DGCIS, DGTR findings |

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/isopropanol/index.md)
- [Overview](https://www.materialinsights.org/chemicals/isopropanol/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/isopropanol/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/isopropanol/routes/index.md)
- [Production](https://www.materialinsights.org/chemicals/isopropanol/production/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/isopropanol/feedstocks/index.md)
- [Trading](https://www.materialinsights.org/chemicals/isopropanol/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/isopropanol/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/isopropanol/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/isopropanol/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/isopropanol/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/isopropanol/links/index.md)